ED takes possession of 15 benami assets linked to 2G Scamster A Raja

Past deeds of A Raja catching up as ED freezes 15 of his Benami assets

October 10, 2023

15 ‘benami’ properties worth Rs.55 cr ‘owned’ by DMK MP A Raja seized

The Enforcement Directorate (ED) on Tuesday said it has taken possession of 15 immovable “benami” properties, worth about Rs.55 crore, belonging to former Minister DMK MP A Raja as part of a money laundering probe. The case of ED is linked to CBI’s disproportionate assets case against the 2G Scamster A Raja when he was Union Environment Minister.

The assets, measuring about 45 acres of land in Coimbatore (Tamil Nadu), were attached by the central agency in December last year and the Adjudicating Authority of the Prevention of Money Laundering Act (PMLA) approved this order on June 1. The 59-year-old Raja is currently a DMK MP from the Nilgiris Lok Sabha seat, facing an appeal of CBI and ED in the 2G Scam case.

The agencies found that Raja’s benami company Kovai Shelters engaged in handling bribe money received from real estate firm Nitech. In those days Raja was the Union Environment Minister and used to get bribes from real estate firms through his benami firms. The benami company Kovai Shelters was run by Raja’s benami Dr. C. Krishnamoorthy and Raja’s nephews and nieces.[1]

“Directorate of Enforcement (ED) has taken possession of 15 immovable properties owned by A Raja in the name of his Benami company M/s Kovai Shelters Promoters India Pvt Ltd, under the Prevention of Money-Laundering Act, 2002(PMLA) in the matter of a disproportionate assets case of A Raja, former Union Cabinet Minister of Environment and Forest, subsequent to confirmation of the PAO by the Hon’ble Adjudicating Authority.

“ED investigation revealed that A Raja, during his tenure as Minister of Environment & 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). 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 its inception.

“ED investigation established that the properties measuring 45 acres of land in Coimbatore, Tamil Nadu (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 possession of the properties attached vide Provisional Attachment Order dated 20.12.2022, which was subsequently confirmed by the Hon’ble Adjudicating Authority (PMLA), Delhi vide order dated 01.06.2023. Further investigation is under progress,” said ED.

Reference:

[1] 2G Scam Reports – Mar 19, 2023, J Gopikrishnan

For all the latest updates, download PGurus App.

Author
Recent Posts

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.