HC dismisses petition of Nava Bharat projects.

Justice P. Naveen Rao of Hyderabad High Court recently dismissed the petition filed by Nava Bharat projects limited challenging the provisional attachment order passed by the Enforcement Directorate in the coal scam case.

The ED has provisionally attached properties worth Rs. 186.11 crores as 'proceeds of crime' in connection with a case arising out of alleged illegal coal block allocation. The case was registered by the CBI against Nava Bharat projects.

The company approached the High Court contending that the ED had failed to appreciate the fact that the amount of Rs. 169 crore was received by the petitioner company towards sale consideration for its equity shares and this was disclosed to the stock exchange and that they had paid an amount of Rs. 35 crore towards income tax.

The ED contended that the investigation under the Prevention of Money Laundering Act by the ED on coal block cases was being monitored by the Supreme Court and periodical status reports are being filed before it on the progress of investigation. The judge said that in these circumstances the alternative remedy is to be availed and writ petition under Article 226 of the Constitution may not be entertained.


THE HINDU