ED takes possession of A Raja's 15 properties in PMLA case

CHENNAI: The Directorate of Enforcement has taken possession of 15 immovable properties owned by A Raja in the name of his benami company Kovai Shelters Promoters India Pvt Ltd, under the Prevention of Money-Laundering Act, 2002 (PMLA) in the matter of a disproportionate assets case of Raja, former Union Cabinet Minister of Environment and Forest, subsequent to confirmation of the property attachment order by the Adjudicating Authority.

ED investigation revealed that Raja, during his tenure as Minister of Environment and Forests (2004 to 2007), granted Environmental Clearances to a real-estate company, based out of Gurugram (one of the largest real estate companies in the country, also listed on BSE), a release from the ED said.

The Real-estate company has given a kickback to A. Raja as quid pro quo for awarding the Environmental Clearance, around the same period in the year 2007, in the garb of land commission income in the hands of the Benami Company of Raja.

A Raja had incorporated the company in 2007 in the name of his family members and his close family friend, with the sole objective of using it as a vehicle to park the proceeds of crime. The said company never engaged in any business activity since inception, claimed ED press note.

ED investigation established that the properties measuring 45 acres of land in Coimbatore (worth around Rs.55 Crore) were purchased directly using the proceeds of crime generated by A Raja.

Therefore, in order to prevent the accused and his benamis from enjoying such properties. ED has invoked the provisions of Section 8 (4) of PMLA and taken the possession of the properties attached vide Provisional Attachment Order dated 20 December 2022, which was subsequently confirmed by the Adjudicating Authority (PMLA), Delhi.