Supreme Court allows ED to add JP Morgan's properties after it recognizes Rs 187 Crore as criminal proceeds

Team SoOLEGAL 25 May 2020 2:29pm

Supreme Court allows ED to add JP Morgan's properties after it recognizes Rs 187 Crore as criminal proceeds

NEW DELHI : On Friday, 22nd of May,2020, the Supreme Court allowed Enforcement Directorate (ED) to attach JP Morgan's properties, which were engaged in transactions with the now-defunct Amrapali Group to allegedly siphon money off home buyers in violation of Foreign Exchange Management Act (FEMA) and FDI standards.

The ED told the top court that it had prima facie identified Rs 187 Crores in JP Morgan 's accounts as criminal proceeds under the Prevention of Money Laundering Act (PMLA) and that it required permission to add its assets in order to recover the same. A bench of Justices Arun Mishra and U.U. Lalit, who took up the matter through video conferencing, granted permission to the ED to add the multi-national firm's assets, said a senior lawyer associated with the case.

Additional Solicitor General Sanjay Jain, appearing for ED, told the bench that the investigation agency had so far prima facie detected Rs 187 crore in JP Morgan 's accounts, which are illegal proceeds under anti-money laundering law according to them. He said the top court had barred the agency from attaching any properties on December 2, last year and therefore now it requires permission to add them to move forward as required by law.

The ED had informed the top court on 2 December last year that it had prima facie found proof of the multi-national firm's breach of FEMA and reported the statements of the company's country head regarding dealings with the Amrapali Group. The apex court then ordered the ED to conduct the investigation in an unbiased, reasonable, and expeditious manner within a three month timeframe. The money of the home buyers has been diverted. The directors diverted the money by the creation of dummy companies, realising professional fees, creating bogus bills, selling flats at an undervalued price, payment of excessive brokerage etc. They obtained investment from JP Morgan in violation of FEMA and FDI norms”, said the top court.

It had also noted that JP Morgan's Amrapali Zodiac shares were ultimately purchased by M / s Neelkanth and M / s Rudraksha,peon-owned shell companies,for Rs. 140 crore.


Tagged: Supreme Court   JP Morgan   criminal proceeds   Enforcement Directorate   Amrapali   Foreign Exchange Management Act   Justice Arun Mishra   Justice U.U. Lalit  
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