SC stayed the HC order on Janardhan Reddy

Team Udayavani, Jul 25, 2017, 10:55 AM IST

New Delhi: The Supreme Court stayed the Karnataka High Court’s order on the Enforcement Directorate proceedings against Gali Janardhana Reddy and his wife Lakshmi Aruna and others, including provisional attachment of their assets worth over Rs 900 crore under the Prevention of Money Laundering Act.

“We are worried about it (impact of the judgement),” a bench of Justices R F Nariman and Sanjay Kishan Kaul observed, after Attorney General K K Venugopal submitted that the high court’s March 13 order would have huge repercussions in other cases.

Senior advocate Mukul Rohatgi, representing Reddy and others, contended that the properties cannot be attached under the Prevention of Money Laundering Act, while applying the law retrospectively.

“All the transactions took place prior to 2009 and money was routed through banks. My case cannot be resuscitated by applying the anti-laundering law,” he said.

The high court order would not operate,” the court directed and put a stay on the high court’s order and allowed the Enforcement Directorate and filed a rejoinder affidavit within four weeks.