RAIPUR: In an important judgment on protecting the value of frozen investments the Chhattisgarh High Court has said that freezing an asset is not enough. Its financial value must be protected also while the legal proceedings are ongoing.
The case has involvement of ₹423 crore held by several companies. Including companies like Dream Achiever Consultancy Services Pvt. Ltd, Discovery Buildcon Pvt. Ltd., Forest Vincom Pvt. Ltd., Brilliant Investments Consultant Pvt. Ltd., Ability Ventures Pvt. Ltd., Ability Smartech Pvt. Ltd., Ability Games Limited, and Savarna Bhumi Vanijya Pvt. Ltd.
Knowing the market risk, the High Court has allowed these companies to submit a proposal to the Enforcement Directorate (ED). Under this proposal the frozen securities can be liquidated and the money received from the procedure can also be reinvested in a way that helps maintain the assets' original value.
Court Highlights Need to Protect Asset Value
The court have noticed that if listed shares and market-linked investments remain frozen for a long period, that share can be exposed to market volatility. From this observation the court has said that protecting the value of an asset is just as important as keeping it secured during the time of investigation.
The matter has drawn immense attention due to the connection to industrialist Hari Shankar Tibrewal. The final decision depends on authorities that are experienced in this segment but the court's stance shows a practical approach toward preserving assets.
Legal experts are seeing this decision as a big step. This can play a vital role in future cases that includes large investment portfolios and securities frozen under the Prevention of Money Laundering Act (PMLA).
Ultimately the High Court's decision plays a vital role. The decision aligns legal balance and economic reality. This decision sends a clear message, that maintaining the financial value of an asset is as important as keeping it protected under the law while investigation goes on.
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