A bench of Justices Arun Mishra and UU Lalit of the Supreme Court directed multi-national firm JP Morgan, to deposit Rs. 140 crore for its alleged role in the siphoning off the Amrapali Group home buyers’ money in contravention to the norms as per the forensic auditors report and last year’s order in the case.As per the Enforcement Directorate (ED) report, the criminal conspiracy was...
A bench of Justices Arun Mishra and UU Lalit of the Supreme Court directed multi-national firm JP Morgan, to deposit Rs. 140 crore for its alleged role in the siphoning off the Amrapali Group home buyers’ money in contravention to the norms as per the forensic auditors report and last year’s order in the case.
As per the Enforcement Directorate (ED) report, the criminal conspiracy was hatched between JP Morgan Group of Companies and the Directors of Amrapali Group under which JP Morgan India Property Mauritius Company-II made Rs. 85 crore investment in Amrapali Zodiac in 2010 and exited it during 2013-15 by taking about Rs. 140 Crore outside India through “sham transactions and shell companies.” According to the ED, the Rs. 85 crore investment in Amrapali Zodiac in 2010 by J.P. Morgan was contrary to the prevailing FDI norms within the country, on account of the fact that the same were made on the terms of guaranteed rates of return to the JP Morgan Group of Companies, which was impermissible under the FDI norms of the country.
Senior Advocate Mukul Rohatgi representing J.P. Morgan told the bench that JP Morgan had not diverted any home buyers’ money and the ED has wrongly attached its assets worth Rs. 187 crore.
The Apex Court asked J.P. Morgan to deposit Rs. 140 crore as per the finding of the forensic audit and directions in the last year’s judgement in the Amrapali Group housing scam, even as Senior Advocate Mukul Rohatgi contended before the Court that the attachment was wrong.
The multi-national firm requested the bench comprising to be allowed to withdraw its application seeking stay of the attachment of its properties. The response from the firm came after the ED filed a reply affidavit stating that J.P. Morgan is trying to shortcut the procedure under the Prevention of Money-Laundering Act by directly moving the Apex Court and evading trial.
Justice Mishra said the amount has been siphoned off from the home-buyers, and also the audit report is against the multi-national firm. “They must then deposit the amount in court. What about illegalities?” said the bench. Rohatgi agreed to come back with instructions next week.
On May 27, J.P. Morgan India had told the Supreme Court it has not committed any wrongdoing and the attachment of its properties by the Enforcement Directorate is blatantly illegal, as it has no role in Amrapali Group housing scam. Mr. Rohatgi added that, it was J.P. Morgan Singapore and Mauritius which have put the money in the real estate firm. The bench noted it was concerned with the contention raised by a firm, which has branches all over the world, and asked the ED to file a short reply on the application filed by J.P. Morgan India before the next date of hearing.