KOCHI : The Enforcement Directorate (ED) on Monday submitted an affidavit with the Prevention of Money Laundering Act (PMLA) court in Kochi that losses incurred by a depositor of Karuvannur Service Cooperative Bank can be recovered by auctioning off attached properties of the accused.
This came on a day when Prime Minister Narendra Modi, addressing a gathering in Thrissur, said the money poor people lost in the bank scam would be returned to them.
The affidavit was filed after a person named Mahadevan approached the PMLA court to restore the attached properties of the accused for reclaiming Rs 33.27 lakh in deposits he had with Karuvannur bank.
In his petition, Mahadevan said he had deposited Rs 33.27 lakh but he could not withdraw the amount as the bank had collapsed due to the actions of the accused. He urged the court to release the attached properties so that they can be auctioned and he can reclaim his deposited money.
ED special prosecutor M J Santhosh, in an affidavit, maintained that action in this regard can be taken with the consent of the court. “It is submitted that as per the second proviso of section 8(8) of PMLA, the special court can consider the claim of the petitioner for the restoration of the property even during the course of the trial. The said section is by Prevention of Money Laundering (Restoration of Confiscated Property) Rules,” the affidavit said.
So far, the ED has attached properties worth Rs 105 crore following its investigation into the scam. The agency submitted the petitioner suffered quantifiable loss as a result of money laundering. “If the accused had not acquired the proceeds of crime through illegal loans, the petition could have realised his deposit in time. The accused acquired the deposits in the bank by way of illegal loans and invested in real estate and other business to project as untainted money,” stated in the affidavit.
The petition was posted for hearing on May 3. According to ED officials, the provision in the Rule came into existence following an amendment in 2016. “However, such a provision has not been used before in the country. Hence there are no court orders in this regard. We would take steps on the court’s direction. Once attached properties are realised, they would be kept for auction and money derived from it would be given to the aggrieved depositors,” an ED official said.