Hyderabad High Court grants respite to YSRC chief YS Jagan Mohan Reddy
Hyderabad: The Hyderabad High Court on Tuesday granted some respite to Bharathi Cements Corporation Ltd., owned by YSRC president Y.S. Jagan Mohan Reddy, by granting stay on an order of the adjudicating authority of the Enforcement Directorate confirming the provisional attachment of properties of Bharathi Cements.
Justice Raja Elango was dealing with seven separate petitions, by Bharathi Cements, Sandur Power, Silicon Builders, Classic Reality, Saraswati Power, Bhagvath Sannidhi Pvt Ltd and Ms Y.S. Bharathi, wife of Mr Jagan Mohan Reddy, challenging the action of the ED in trying to take possession of their movable and immovable properties, including fixed deposits and shares, based on the confirmation of the provisional attachment of properties.
The ED, which is investigating the alleged quid pro quo deals of Mr Jagan Reddy, in which he is alleged to have received money for favours granted when his father was Chief Minister, had earlier issued proceedings under the Prevention of Money Laundering Act for attachment of the properties of the petitioner companies, claiming that they are the proceeds of crime.
The petitioners contended that they had the statutory period of 45 days time to avail of legal remedies against the order of the adjudicating authority confirming the provisional attachment under the Prevention of Money Laundering Act.
When the judge sought a response from the counsel for the ED, he replied that the ED had transferred Rs 177 crore of fixed deposits in its account. For taking possession of the immovable properties, the ED would issue notices to the petitioners and give them an opportunity to avail of legal remedies under the Act.
The judge said that as the petitioners have 45 days to avail of remedies against the confirmation order, the ED should let them avail of the remedies; in the meanwhile the ED shall not take possession of properties and the appellate authority too can pass appropriate orders without influence of this stay order.
The judge said that the status quo shall be maintained with regard to the fixed deposits.
On Tuesday, another six petitions were moved before the High Court by Revan Infra, Capstone Infra, Utopia Infra, Saraswati Power Silicon Infra and Harish Infra urging the court to direct the ED not to take possession of their properties based on the confirmation order of the adjudicating authority regarding 912 acres belonging to the companies and other movable properties.
