PIL seeks action under Money Laundering Act in Adarsh case

Last Updated: Thu, Jun 16, 2011 15:00 hrs

Mumbai: A PIL filed in the Bombay High Court has demanded that provisions of `Prevention of Money-laundering Act, 2002' be invoked in the Adarsh Society scam case, and the source of the funds used for the purchase of flats be probed.

The PIL, filed by Pravin Wategaonkar, came up for hearing before division bench of Justice Ranjana Desai and Justice R V More today. The bench deferred the matter till June 22.

The petition contends that this is a fit case in which Prevention of Money-laundering Act can be invoked. One of the functions of the Directorate of Enforcement (ED) was to enforce this Act, it argues.

It further says it is important that actions of ED are monitored by the High Court, especially pertaining to those Adarsh Society members, whose "loans" are claimed to have come from sources other than the Banks and the Financial Institutions, with a more focus on `benami' flats.

Even those, who are claiming immunity now saying that they have quit the membership of Adarsh Society, be investigated with regard to the source of funds used to acquire the membership in the first place, it says.

The PIL adds that it has been four months since Income Tax department sent notices to members of Adarsh Society, and the replies sent by 94 members should be scrutinised, keeping in view income declarations submitted by them at the time of becoming the members of the Society.

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