ED can attach JP Morgan’s properties in Amrapali case Apex Court asks govt to give 500 crore loan to complete the projects.
(Judicial Quest News Network)
The Supreme Court on Friday allowed the Enforcement Directorate (ED) to attach properties of J.P Morgan in Amrapali case, after the agency detected Rs.187 crore as proceeds of crime.
A bench of Justices Arun Mishra and U.U. Lalith ordered attachment of the properties of its directors under section 5 of Prevention of Money Laundering Act.
Justice Mishra stated that government must give a Rs.500 crore loan immediately, especially considering “that there is no private player but it is NBCC who has been entrusted who has been entrusted with entire project”.
Additional Solicitor General Vikramjit Banerjee, appearing for the Union of India and SBI Capital (SBI CAP), submitted that a meeting with the Secretary of Union Finance Ministry would be conducted, wherein he would convey the Court’s suggestion. He Said.
“It was also pointed out by Mr. Sanjay Jain, learned ASG
appearing for the Enforcement Directorate that in the criminal investigation made against J.P. Morgan; they have prima facie found the proceeds to the extent of Rs. 187 Crores and for that, they have to proceed against J.P. Morgan and its Directors and as such, attachment is required to be made to aforesaid extent. We lift the embargo created vide order dated 2 nd December, 2019 not to attach the property of J.P. Morgan and its Directors. We permit the
Enforcement Directorate to attach the Bank Accounts of J. P. Morgan
as well as any other property belonging to J.P. Morgan and its
Directors to the extent required.”
It was also pointed out by the learned Receiver that sale of
FAR may be directed so as to fetch the amount for the purpose of
construction.
Senior Advocate R.Venkatramani appointed as Receiver by the court in this case pointed out by the learned Receiver.
It was pointed out that GST should be waived by the Government of
India considering the dispute in the matter, alternatively it was
submitted that GST dues may be kept in abeyance.
On July 23 last year, the SC had ordered cancellation of Amrapali Group’s registration under RERA and ordered a probe by the ED into allegations of around 42,000 flats booked in Amrapali Group projects.
“The money of the home buyers has been diverted. The directors diverted the money by the creation of dummy companies, realising professional fees, creating bogus bills, selling flats at an undervalued price, payment of excessive brokerage etc. They obtained investment from JP Morgan in violation of FEMA and FDI norms,” the top court had said.
It had said that the equity shares of the group were purchase at an exorbitant price to suit the requirements of JP Morgan and the Amrapali Zodiac Developers Pvt.Ltd had diverted home buyers’ fund.
[Read Order]
