Bombay HC directs ED not to attach producer's properties until decision on plea

MUMBAI: In an interim relief to film producer Sandeep Arora, the Bombay High Court has directed the Enforcement Directorate not to take into possession his properties until his petition is heard and decided finally.

The Enforcement Directorate (ED) had in October last year seized properties of Arora, who had allegedly cheated the UK government by claiming bogus tax returns a few years ago.

The agency had seized Arora's properties on a request made by the UK government under the mutual legal assistance treaty.

Aggreived by ED's action, Arora approached the Bombay High Court seeking relief.

A vacation bench of justices R K Deshpande and V L Achliya on June 1 issued notice to ED and posted Arora's petition for hearing on June 16.

"The High Court has granted interim relief sought by us that the ED should not take into possession the properties it has seized," Arora's lawyer Dinesh Tiwari said.

Arora's company, Fine Tune, had claimed a tax return from the UK government under a special scheme meant to promote documentary films on social and cultural issues. It is alleged that he claimed the money as returns for documentaries he never made. He further claimed more returns after producing forged documents to show he had produced the documentaries.

Arora then brought the money to India through legal channel. When the UK government learnt of the fraud, it started investigation against him. On inquiry, they learnt that Arora had shifted to India with the money.

The UK government then informed India and requested to trace Arora and attach his properties. The ED Mumbai traced Arora and the money trail. They have recorded Arora's statement, seized a flat, bank accounts and his policies.