High Court Directs Karvy and ED to Maintain the Status Quo on the Properties Attached:
The Telangana High Court has issued a directive for maintaining the status quo on the properties belonging to the Karvy Group, which were previously provisionally attached by the Enforcement Directorate (ED) and subsequently unfrozen by a ruling from a single judge bench.
A bench comprising Chief Justice Alok Aradhe and Justice N.V. Shravan Kumar has scheduled a hearing for the petitions filed by both the ED and the Karvy Group for final disposal on November 7.
Following the seizure of these properties by the ED in connection with the Karvy Stock Broking scam, the company argued that the properties and records were initially seized on September 22, 2021. Furthermore, it contended that the freeze on assets extended beyond the 180-day deadline, up until September 24, 2022.
The adjudicating authority responsible for this matter consisted of a single member who lacked legal expertise. Consequently, this authority was unable to issue a show-cause notice under Section 8(1) of the Prevention of Money Laundering Act (PMLA) or issue an order confirming the provisional attachment of the properties.
On October 19, 2022, a single judge suspended the orders issued by the Adjudicating Authority. In response, the ED has filed appeals to challenge this decision.
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