PMLA case | Delhi High Court refuses to stay summons issued to Mehbooba Mufti by ED

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A bench of Chief Justice DN Patel and Justice Jasmeet Singh said they are not granting any relief to the PDP leader.

The Delhi High Court on Friday refused to stay the summons issued to former Jammu and Kashmir Chief Minister Mehbooba Mufti by the Enforcement Directorate in a money laundering case.

A bench of Chief Justice DN Patel and Justice Jasmeet Singh said they are not granting any relief to the PDP leader.

The court asked the ED to file a short note of submission along with compilation of judgements relied upon by them before the next date on April 16.

Solicitor General Tushar Mehta, representing the ED, said Ms Mufti just has to appear before the officials.

The ED, which had earlier summoned Ms Mufti for March 15, has not been issued summons for March 22.

The former Jammu and Kashmir chief minister has been summoned for March 22.

Senior advocate Nitya Ramakrishnan, representing Ms Mufti, urged the court to ask ED not to insist for her personal presence as was done earlier.

To this, the bench said, “We are not giving any stay. We are not granting any relief.” Ms Mufti has sought quashing of summons issued to her by the ED in a money laundering case.

She has also sought to declare section 50 (power of ED officer to record statement) of the Prevention of Money Laundering Act as void and inoperative, being unfairly discriminatory, bereft of safeguards, and violative of Article 20(3) of the Constitution. She has also sought an interim stay on the summons until the question of law in relation to constitutionality of Section 50 of the Act is decided.

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ED Attaches Rs 32 Crore Assets of TV Channels in TRP Scam Case

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The Enforcement Directorate (ED) on Wednesday attached assets worth about Rs 32 crore of some Maharashtra-based television channels in connection with its money laundering probe into the alleged TRP scam. The properties, attached under the provisions of the Prevention of Money Laundering Act (PMLA) belong to channels like Fakt Marathi, Box Cinema and Maha Movie and are in the form of land and commercial and residential units in Mumbai, Indore, Delhi and Gurgaon apart from some bank deposits, the central agency said in a statement.

The agency claimed that “in two of these channels just 5 compromised households were contributing to approximately 25 per cent of the viewership of Mumbai for the relevant period and for the third channel, 5 compromised households were contributing to about 12 per cent of viewership of Mumbai.” The agency had filed a money laundering case against the channels after studying a Mumbai Police FIR for alleged manipulation of Television Rating Points (TRPs). “Television channels namely Fakt Marathi, Box Cinema and Maha Movie had entered into a criminal conspiracy to cheat and commit the offence of criminal breach of trust, forgery in order to gain wrongfully by manipulating TRPs of these television channels.” “Thus, by fraudulently enhancing the TRP ratings, these channels have garnered enhanced advertisement revenue,” the ED claimed.

TRP indicates popularity of a TV channel or a programme and also enables advertisers to understand viewership pattern. These barometers are installed for Broadcast Audience Research Council by Hansa (BARC decides the household where the Bar-o-meter is to be installed and the installation is handled by third party agency known as Hansa Research Group Limited) and employees (relationship managers) of Hansa install and service the device, it said. “TRP becomes an important basis on which advertisement is allocated to any channel and determines the revenue generation of television channel. Thus, manipulation of TRP becomes a tool for generating greater advertisement revenue It was found that the “confidential information of the households where Bar-o-meter are installed was revealed by the relationship managers to various unscrupulous elements for pecuniary gains and thereafter the households were bribed and induced to watch specific channels, which fraudulently enhanced the television rating points (TRP) for the television channel and on the basis of rigged TRP, advertisers were deceived and advertised on the channel which would not have been otherwise done.” The ED claimed that the accused channels generated a total “proceeds of crime” to the tune of Rs 46.77 crore.

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ED Attaches Assets of Sushil Kumar Shinde’s Daughter, Son-in-law in Money Laundering Case

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The Enforcement Directorate (ED) has attached assets worth over Rs 35 crore of the daughter and son-in-law of former Union home minister Sushil Kumar Shinde in a money laundering case linked to an alleged bank fraud. The central agency said the properties, provisionally attached under sections of the Prevention of Money Laundering Act (PMLA),are “in the form of two commercial properties measuring about 10,550 sq ft area each in the Kaledonia building, Andheri (East), Mumbai.” The assets valued at Rs 35.48 crore, the agency said in a statement, belong to businessman Raj Shroff and his wife (Priti Shroff).

Agency sources said Priti Shroff is the daughter of Congress leader and ex-chief minister of Maharashtra Sushil Kumar Shinde. Shinde has also served as the Union home minister.

The attachment of assets has been done in connection with a money laundering probe linked to an alleged bank fraud case linked to HDIL promoters Rakesh Wadhawan and Sarang Wadhawan. “Rakesh Wadhawan, Sarang Wadhawan and others are being probed for siphoning off the loan to the tune of Rs200 crore sanctioned by Yes Bank to Mack Star Marketing Pvt Ltd, by showing it for fictitious purpose,” the ED said.

Wadhawans “illegally and fraudulently” transferred one commercial property of Mack Star located in Kaledonia building, Andheri East, Mumbai to Jindal Combines Pvt. Ltd at price of Rs 9.39 Crore (having value of Rs 15.64 crore at that time) in 2014 and another commercial property to Orlando Trading Pvt Ltd at the agreement value of Rs 18 Crore (having value of Rs 19.84 crore) in 2016, it said. “However, they paid only Rs 10 crore for the second property till date. The firms are receiving rent of Rs 1.76 crore and Rs 1.39 crore per annum for these two properties respectively,” it said.

Both the companies, the ED said, are owned by Raj Shroff and his wife in a 50:50 partnership mode. “Thus, Rakesh Wadhawan and Sarang Wadhawan cheated Mack Star Marketing Pvt Ltd by illegally selling above said properties without consent of the majority shareholder (DE Shaw Group which holds 83.36 pc shares)of Mack Star Marketing Pvt. Ltd. at a very low price causing loss to Mack Star,” it said.

The total value of attachment in this case now stands at Rs 69.84 crore.

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New ED takes charge at Union Bank

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Nitesh Ranjan has taken charge as ED of the Union Bank of India.

He had started his career with the Food Corporation of India before moving to Andhra Bank. He holds a a post-graduate degree in economics and has completed a leadership development programme from IIM-Bangalore.

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