Summary
In the Amrapali proceedings, an associate of the group claimed a 40% share in land at an Amrapali colony in Indore under memoranda of understanding, and challenged the Debt Recovery Tribunal's treatment of that land as Amrapali's. Meanwhile the Court attached his and his family's assets. He sought release on the ground that the Enforcement Directorate's confirmed attachment fixed the funds siphoned at about Rs 4.79 crores. The forensic auditors put his liability higher. The Supreme Court refused release. The root question was whether he had any title to the land. That rested on unregistered documents and had not been finally decided. Prima facie the Amrapali Group had made the bulk of the investment. His applications were directed to be listed early.
Issues
- Whether the attachment of the applicant's assets, ordered by the Court in the Amrapali proceedings, should be released because the Enforcement Directorate's confirmed attachment quantified the funds siphoned off at about Rs 4.79 crores.
Provisions considered
- Section 5(1), Prevention of Money Laundering Act, 2002The Enforcement Directorate's provisional attachment order, later confirmed, quantified the funds siphoned off; the Court held that this figure alone did not justify releasing lands of greater value while the applicant's entitlement remained undecided. (¶¶ 9, 11)
Held
- The forensic auditors and the Enforcement Directorate gave divergent figures for the applicant's liability, but the root of the controversy was whether he had any claim or title to the attached property, which rested on unregistered documents and had not been finally determined by the DRT or by this Court. (¶ 11)
- Prima facie the Amrapali Group had invested at least Rs 21 crores in purchasing the lands, so the bulk of the investment came from it; merely because the funds siphoned off were put at Rs 4.79 crores, lands beyond that value could not be released to the applicant before his entitlement was pronounced upon. (¶¶ 9, 11)
- The prayer for release of attachment of all the assets was rejected at this stage and was to be considered along with his pending applications. (¶ 12)
Result
Prayer for release of attachment of the applicant's assets rejected; I.A. Nos. 8259 of 2019 and 74385 of 2020 directed to be listed and considered at an early date.