Court notice to govt on property attachment

NEW DELHI, INDIA: The Delhi High Court on Wednesday issued notice to the central government on a plea filed by a construction company challenging an Enforcement Directorate (ED) order to attach its properties in connection with an alleged bribe of Rs.200 crore paid to Kalaignar TV in the 2G case.

Nihar Constructions is allegedly connected with Shahid Balwa, an accused in the 2G case.

The five companies named in the ED order include DB Realty, Eversmile Constructions Pvt. Ltd., Conwood Construction and Dynamix Realty.

Justice M.L. Mehta, while seeking a response from the central government, also issued notice to the ED and directed it to file its reply by Feb 27.

On March 9, 2010, the ED, based on the CBI chargesheet in the 2G case, ordered the attachment of the properties of five companies, including Nihar Constructions.

The competent authority under the Prevention of Money Laundering Act (PMLA) approved the ED's attachment order.

The petition said: "The registering of the criminal case under the Prevention of Money Laundering Act for an offence which was not a scheduled offence on the date of the alleged commission of the said offence will be hit by the constitutional bar."

The properties and bank accounts that have been ordered to be attached, include land in Yerwada near Pune, unsold properties at an upscale Mumbai mall and flats worth crores of rupees in Mumbai.

As per the order, the land at Yerwada, worth Rs.13 crore, is owned by Eversmile. Another property worth Rs.23 crore at Shagun Mall on Gen. A.K. Vaidya Marg, is owned by Conwood. Two flats owned by DB Realty in Mumbai, worth Rs.1 crore each, and another flat at Orchid Breeze at Bandra, owned by Nihar Constructions, have also been ordered to be attached.