In accordance with the Prevention of Money-Laundering Act of 2002 (PMLA), the Directorate of Enforcement (ED) has taken possession of 15 immovable properties belonging to A. Raja who was registered in the name of his Benami company M/s Kovai Shelters Promoters India Pvt Ltd. Raja, a former Union Cabinet Minister of Environment and Forest, was accused of having disproportionate assets. This action was taken after the Hon’ble Adjudicating Authority confirmed the PAO.
During his stint as Minister of Environment and Forests (2004 to 2007), A. Raja issued Environmental Clearances to a real-estate business situated in Gurugram (one of the major real estate corporations in the country, also listed on the BSE).
Around the same time in 2007, the real-estate company gave A. Raja a bribe in the form of land commission income in the hands of A. Raja’s Benami Company as a thank you for awarding the Environmental Clearance. A. Raja formed the corporation in 2007 in the names of his family members and a close family friend with the express intention of utilizing it as a vehicle to store criminal gains. Since its foundation, the aforementioned corporation has never participated in any commercial activity.
According to an ED investigation, the assets measuring 45 acres of land in Coimbatore, Tamil Nadu (worth around Rs.55 Crore) were purchased directly using the profits of crime created by A. Raja. As a result, in order to deprive the accused and his benamis of such properties.
The ED has invoked Section 8(4) of the PMLA and seized possession of the attached properties via a Provisional Attachment decision dated 20.12.2022, which was later validated by the Hon’ble Adjudicating Authority (PMLA), Delhi via decision dated 01.06.2023. More research is being conducted.
