Tribunal Upholds ED’s Attachment of Koneru Pradeep’s London Policy in Emaar Case

The Story in Brief

The SAFEMA Appellate Tribunal has upheld the Enforcement Directorate's attachment of a London insurance policy belonging to industrialist Koneru Pradeep in the money-laundering case linked to the Emaar Hills Township project. The policy, a Scottish Provident International Momentum Single Life policy, has a maturity value of USD 250,000 and a surrender value of about USD 120,000. Pradeep had argued that the policy was purchased in 1998, years before the alleged Emaar scam of 2005-2010, and that ED had already attached properties worth Rs 167 crore, covering the entire identified proceeds of crime.

ED countered that premium payments continued until 2014 and that money laundering is a continuing offence, so the payments could be examined. The agency also said that because large amounts of unrecorded cash are involved, the exact quantum of proceeds of crime cannot be rigidly fixed. The case stems from the Emaar township project, where Rs 96 crore in cash was allegedly collected from 82 villa buyers.