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Consulting firm moves Madras HC against ED freezing its bank accounts in INX Media case

Press Trust of India  |  Chennai 

A consulting firm allegedly linked to former union P Chidambaram's son has moved the challenging the 'freezing' of its accounts by the in connection

with the money laundering case.

When the petition filed by the came up for hearing Thursday, Justice R Mahadevan adjourned it to Friday.

The ED Thursday said it has attached assets worth Rs 54 crore of in India, the UK and in connection with the money laundering case.

Fixed deposits worth Rs 90 lakh, kept in a in Chennai, in the name of ASCPL have also been attached, it said.

The ED had registered the money laundering case on the basis of a CBI FIR and had alleged that irregularities took place in the FIPB clearance to for receiving overseas funds to the tune of Rs 305 crore in 2007 when Karti's father was the

In its petition, the ASCPL submitted that the ED had in September 24 directed branch managers of three banks here not to allow any debit from the current accounts of the company without obtaining prior permission.

Contending that the ED's directive was illegal, without authority of law and arbitrary, it wanted the court to quash it.

According to the petitioner, the ED in its letters to the Nungambakkam branches of the and and the Mylapore branch of the Axis Bank, where the ASCPL holds accounts, had referred to the investigation under Prevention of Money Laundering Act (PMLA) against

The ED had said that it had come to its notice during the investigation that these accounts besides those of Karti and others were suspected to have been used for the purpose of money laundering, the petitioner submitted.

The agency had also requested the bankers to provide transcript, account opening form and KYC documents of the accounts, the company said.

The ASCPL also submitted the CBI in its FIR in the case had alleged that Karti had received Rs 10 lakh through it as illegal gratification for influencing the FIPB officials.

It said the company had filed a petition seeking to quash the FIR which is pending in court.

The petitioner further contended that the ED had no jurisdiction to investigate the alleged offence under the PMLA in relation to INX Media deal and hence the communication sent by the agency to the bankers for freezing its accounts was without authority of Law.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 21:40 IST
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