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In a significant legal development, the Delhi High Court has rejected a petition filed by R K Arora, the chairman and owner of Supertech, a prominent real estate company. This petition challenged his arrest by the Enforcement Directorate (ED) in connection with a high-profile money laundering case. Arora contended that his arrest on June 27 was both arbitrary and illegal, primarily due to the lack of information regarding the grounds for his apprehension. However, the court's ruling has upheld the ED's adherence to the relevant legal provisions, effectively dismissing Arora's claims.
Justice Dinesh Kumar Sharma, presiding over the case, asserted that the grounds for Arora's arrest had been meticulously provided and communicated to him. Importantly, Arora had officially acknowledged these grounds in writing, appending his signature. The court emphasized the essence of being "informed" promptly at the time of arrest, emphasizing that if this information is appropriately conveyed during arrest and further detailed in the remand application, it constitutes adequate notification. Thus, the court's decision to dismiss the petition aligned with this interpretation of the law.
Arora had additionally argued that the actions of the ED amounted to violations of the Prevention of Money Laundering Act (PMLA) and infringements upon his fundamental rights enshrined under Article 22(1) of the Indian Constitution. However, the court's scrutiny found no substantive violations in this regard. There was a notable absence of evidence indicating that Arora had been deprived of his right to consult with a legal practitioner. Furthermore, the "reason to believe" requirement, a pivotal aspect under Section 19(1) of the PMLA, had been meticulously and adequately documented, thereby substantiating the legality of Arora's arrest.
The court's ruling extended to the issue of interim bail, wherein it was deemed impractical to transfer Arora to Mumbai for meetings with financial creditors while he remained in custody. The court clarified that even for the grant of interim bail, it was imperative for the provisions of the PMLA to be met. However, it did suggest a viable alternative, allowing for video conferencing meetings to be conducted from the confines of the jail, in compliance with the law.
Subsequently, on August 24, the ED took the significant step of filing a charge sheet against Arora, who remains in judicial custody. This charge sheet also named Arora's company and eight others, accusing them of orchestrating a conspiracy to defraud homebuyers, resulting in financial losses to at least 670 individuals, amounting to Rs 164 crore. This legal action stemmed from 26 FIRs lodged by the Economic Offences Wing across Delhi, Haryana, and Uttar Pradesh against Supertech Ltd. and its affiliated group companies. The allegations encompassed criminal conspiracy, cheating, breach of trust, and forgery.
Supertech Ltd., with its establishment dating back to 1988, has an extensive portfolio of nearly 80,000 delivered apartments, primarily concentrated in the Delhi-NCR region. Presently, the company is grappling with the challenge of providing possession to over 20,000 customers across approximately 25 projects in the National Capital Region. Notably, the company faced a severe setback last year when the Supreme Court ordered the demolition of its towering structures, Apex and Ceyane, situated on the Noida Expressway. This decision was made on the grounds that these structures were constructed within the Emerald Court premises in clear violation of established regulations. Consequently, Arora estimated the company incurred staggering losses of around Rs 500 crore, encompassing construction costs and interest expenses.
In summary, the Delhi High Court's decision to dismiss R K Arora's petition signifies a pivotal legal development in a complex money laundering case. The court's detailed scrutiny and validation of the ED's actions underpin the importance of adherence to legal provisions and due process in high-profile cases of financial impropriety. Additionally, the ongoing legal proceedings against Supertech Ltd. and its executives highlight the need for transparency and accountability within the real estate sector, especially concerning the interests of homebuyers.
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