- The ED invoked provisions of the Prevention of Money Laundering Act, (PMLA) 2002 to take possession of 15 immovable properties owned by DMK MP and former Union Minister A Raja.
- The assets, measuring about 45 acres of land in Coimbatore (Tamil Nadu), were attached by the central agency.
- Benami means ‘no name’ or ‘without name’ and such properties are those in which the real beneficiary is not the one in whose name the property has been purchased.
- The 59-year-old Raja is currently a DMK MP from the Nilgiris Lok Sabha seat.
The Enforcement Directorate (ED) on Tuesday took possession of 15 immovable properties owned by DMK MP and former Union Minister A Raja. The properties were registered in the name of his Benami company, Kovai Shelters Promoters India Private Limited.
‘A ‘Benami’ property is not a property in which the real beneficiary is not the one under whose name the property has been purchased.
The central agency invoked provisions under the Prevention of Money Laundering Act, 2002 in a disproportionate assets case against the former Union Minister and took possession of the assets.
As per the ED, Raja, during his tenure as the Union Minister of Environment and Forests between 2004 and 2007, granted environmental clearance to a real estate company in return for “kickbacks” that he received from the company in the garb of land commission income in the hands of the Benami Company founded by him.
The ED investigation revealed that Raja incorporated the company in the name of his family members and his close family friend, with the sole objective of using it to park the proceeds earned through unlawful means. The company has never engaged in any business activity since its inception.
It further revealed that assets, measuring about 45 acres of land in Tamil Nadu’s Coimbatore (worth around Rs.55 Crore), were purchased from the proceeds of the “kickbacks” that he received.
Following the investigation, the assets were attached by the central agency in December last year and the Adjudicating Authority of the Prevention of Money Laundering Act (PMLA) approved this order on June 1.
The ED in a statement said that the real estate company had given “kickback” to Mr. Raja as quid pro quo for awarding the Environmental Clearance in the garb of land commission income in the hands of the benami company of the former Union Minister.
Investigators said that he had incorporated the company in 2007 in the name of his family members and his close family friend with the sole objective of using it as a vehicle to park the proceeds of crime. The company never engaged in any business activity since its inception.
ED investigation established that the properties measuring 45 acres of land in Coimbatore, Tamil Nadu, worth around ₹55 Crore were purchased directly using the proceeds of crime generated by Mr. Raja.
The investigation in the case is still going.
(With inputs from agencies)
