HYDERABAD: While granting interim stay on the Enforcement Directorate seizure of property belonging to Mack Soft-owned Q-City Tech Park for alleged violation of Foreign Exchange Management Act (FEMA), the High Court directed the ED to file its counter affidavit on the issue. The tech park was spread over 2500 square yards in the city’s IT corridor with a building worth about Rs 84 crore.
Recently, Justice A Rajasheker Reddy passed this order in the petition by Mack Soft Tech seeking to stay operation of the order. The petitioner’s contention is that the allegations made do not make out the ingredients of Section 37A(1) of FEMA and hence the order of seizure is illegal and arbitrary.
The company came under the new management of Irish Bank resolution corporation (IBRC), an Irish government controlled bank, which challenged the order impugned before the court. While granting interim stay, the court directed the ED to file its counter affidavit in the case in two weeks. The court made it clear that the petitioner company should not alienate the subject property till further orders.