Actor Shilpa Shetty, husband move HC, challenge ED’s eviction notices
The adjudicating authority under the Prevention of Money Laundering Act had on September 18 confirmed the agency’s orders, provisionally attaching the two properties in the money laundering case against Kundra
MUMBAI: Actor Shilpa Shetty and her husband, businessman Raj Kundra have moved the Bombay high court challenging the notices issued by the Enforcement Directorate (ED), directing them to vacate their Juhu house and a farmhouse in Pune. The properties are attached by the agency in connection with a money laundering case registered against them.
A division bench of justice Revati Mohite Dere and justice Prithviraj Chavan posted their petitions for hearing on Thursday.
The adjudicating authority under the Prevention of Money Laundering Act had on September 18 confirmed the agency’s orders, provisionally attaching the two properties in the money laundering case against Kundra.
Against that backdrop, on September 27, the agency issued an eviction order to Kundra with respect to two of his assets – their Juhu residence and the farmhouse in Pune, against which the couple approached the High Court by filing separate petitions.
The petitions stated that they received the ED notices, directing them to evict their residential premises and the farmhouse in Pune in ten days, only on October 3, as the properties are attached in the money-laundering case linked to an alleged Bitcoin fraud.
According to the petitions, filed through advocate Prashant Patil, there was no grave urgency for the petitioners to vacate their premises and that the issuance of such eviction notices was uncalled for. “The petitioners are also seeking relief on humanitarian grounds as the premise in question is their residential premise in which they have been staying with their family of six members for almost two decades,” the petitions said.
On Wednesday, when the petitions came up for hearing, their lawyer pointed out that as per the PMLA’s provisions, once a PAO is confirmed by an adjudicating authority, the aggrieved persons gets 45 days to challenge the same at PMLA Appellate Tribunal in Delhi, but the agency issued the eviction notice before the lapse of the 45 - day limit and therefore, requested the court to stay the eviction as an interim measure.
The court asked ED that in such a situation, whether a stay on eviction can be given till the petitioner’s plea for the stay is decided by the Appellate Tribunal and also whether the petitioner should have approached the PMLA Appellate Tribunal first, instead of the HC.
ED’s special counsel, advocate Satya Prakash, replied that the agency’s action was as per the provisions of the PMLA. Singh submitted that as per Section 8(4) of the PMLA, once a PAO is confirmed by an Adjudicating Authority, the ED should take possession of the attached property/asset forthwith and so, its action was as per the law.
Advocate Satya Prakash submitted that he would take instructions from the ED on two issues raised in the court and will submit the agency’s stand on Thursday. Opposing any stay on the eviction notice, the lawyer said that the petitioner can approach the Appellate Authority as per PMLA for redressal.
According to their petitions, the ED notices directed them to evict their residential premises and the farmhouse in Pune in ten days, as the properties are attached in the money-laundering case linked to an alleged Bitcoin fraud.
According to the petitions, there was no grave urgency for the petitioners to vacate their premises and the issuance of such eviction notices was uncalled for. “The petitioners are also seeking relief on humanitarian grounds as the premise in question is their residential premise in which they have been staying with their family of six members for almost two decades,” the petitions said.
ED had in April this year provisionally attached the assets worth ₹97.79 crore belonging to Kundra, including a Juhu flat in Shilpa Shetty’s name, amid a money-laundering probe linked to a ₹6,600-crore bitcoin-based Ponzi scheme.
According to ED sources, Kundra allegedly received 285 bitcoins, valued at around ₹150 crore, from the deceased mastermind Amit Bhardwaj for a failed Bitcoin mining project in Ukraine. Apart from the Juhu flat, the agency had provisionally attached a bungalow in Pune and his equity shares.