ED attaches coffee estate, assets of former K'taka official

The Enforcement Directorate has attached assets worth Rs 50 crore, including a coffee estate, of a former official of a Karnataka irrigation body in connection with its money laundering probe against him on charges of possessing alleged disproportionate assets.
The attachment pertains to a case registered by ED under the Prevention of Money Laundering Act (PMLA) based on a state Lokayukta Police FIR of 2012, charging the then Managing Director of Karnataka Neeravari Nigama Limited (KNNL) N Lakshman Rao Peshve and his wife with allegedly holding illegal assets worth Rs 9.34 crore.
The agency attached close to two dozen properties, including a coffee estate in Chikkamagaluru district, under PMLA laws which, it said, had a registered value of Rs 9.05 crore, but their current market value is Rs 50 crore.

"Investigations have shown that several properties were acquired by the accused in his name and in the name of his wife. It was also noticed that his wife had actively assisted him in manipulating the records to amass various assets in her name.
"The assets included several commercial complexes as also a coffee estate in Chikkamagaluru. It was also noticed that the accused had projected the ill-gotten properties as un-tainted," the agency said.
The KNNL is tasked to plan, investigate, estimate, build, operate and maintain irrigation projects in the Krishna river basin of Karnataka.
An attachment order under PMLA is aimed at depriving the accused from obtaining benefits of their alleged ill-gotten wealth. The accused can appeal against the order before the adjudicating authority of the Act within 180 days.