Not taken possession of Jagan's properties: ED

Hyderabad: Enforcement Directorate officials on Wednesday informed the Hyderabad High Court that they have not taken possession of properties belonging to Bharathi Cements Corporation Ltd. owned by YSR Congress president Y.S. Jagan Mohan Reddy and other Bharathi companies attached in the illegal investments case under the Prevention of Money Laundering Act.

P.S.P. Suresh Kumar, counsel for the Enforcement Directorate appearing before Justice A. Ramalingeswara Rao, submitted that they have not taken possession and that it was only a notice under Section 5(2) of the PMLA Act.

While asking the court to grant time to file the counter affidavit, he submitted that the ED will abide by the orders of status quo passed by the appellate tribunal of ED in appeals by the petitioners.

He said the notice was of a symbolic possession. The judge was hearing the petitions by Bharathi Cements and other companies seeking to declare as illegal the ED issuing possession notice on February 7 and 8 of 2017 under Section 8(4) of the PMLA Act read with Rule 6(1) of Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013.

S. Sriram, counsel appearing for Classic Realty Ltd., one of the petitioner companies, said that the ED’s action was contrary to the orders of the division bench of this court and orders of a single judge and also orders of the appellate tribunal of ED on February 7, 2017 directing the ED to maintain status quo.

He contended that the notice indicates that ED considers itself to be owner though without possession, which is reflected in the contents of the possession notice. The judge said that in view of statement made by the ED, he will dispose of the petitions.

Counsel appearing for Bharathi Cements, while urging the court not dispose of the petition, said that though the ED has made the statement, its authorities were acting contrary to it. The judge adjourned the case to next Wednesday.