HYDERABAD: The Enforcement Directorate on Wednesday informed the Hyderabad High Court that it has not taken possession of the properties belonging to Bharathi Cements, belonging to YSR Congress president Jagan Mohan Reddy, and other companies attached in the illegal investments case of Jagan under the PMLA (Prevention of Money Laundering Act), but has only issued a notice under Section 5(2) of the Act.
ED counsel PSP Suresh Kumar was making this submission before Justice A Ramalingeswara Rao dealing with petitions filed by Bharathi Cements and other companies seeking to declare the action of the ED in issuing possession notice on February 7 and 8 this year under Section 8(4) of the PMLA read with Rule 6(1) of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013 as illegal.
The ED counsel urged the court to grant some time for filing counter affidavit saying that the ED authorities will abide by the order of status quo passed by the Appellate Tribunal of ED in appeals filed by the petitioners.
Stating that the notice is of symbolic possession, he urged the court to grant some time to file the counter affidavit. The ED authorities will abide by the orders of status quo passed by the appellate tribunal of ED in appeals by the petitioners, he added.
On the other hand, advocate S Sriram, appearing for one of the petitioner company Classic Realty Limited, said that the action of the ED is contrary to the orders of the division bench of this court and orders of a single judge and also orders of the appellate tribunal of ED on Feb 7, 2017 directing the ED to maintain status quo. The notice indicates that the ED considered itself to be owner of the properties though without possession, he noted.
Taking into consideration the statement made by the ED that it will not take possession of properties, the judge said that he will dispose off the petitions.
At this stage, the counsel appearing for Bharathi Cements urged the court not to dispose off the petitions by pointing out that though the ED has made the statement, but its authorities are acting contrary outside the court.
Following the plea, the judge adjourned the case to next Wednesday.
