ED restores Rs 175-cr worth assets to distressed homebuyers; SC praises its initiative
New Delhi (PTI): The Enforcement Directorate (ED) has restored flats, commercial units and plots worth Rs 175 crore to more than 200 homebuyers who had been waiting to get possession of their dream home for over 12 years, the agency said.
The unsold inventory of 354 flats, 17 commercial units and two plots belong to a project named Royal Rajvilas (RRV) in Rajasthan's Udaipur.
The project's present market value is about Rs 175 crore, the ED said in a statement issued on Tuesday.
The case pertains to a money laundering investigation against an accused named Bharat Bomb, apart from some others, who are alleged to have cheated the Syndicate Bank (now Canara Bank) to the tune of Rs 1267.79 crore between 2011 and 2016.
The ED had attached properties worth Rs 535 crore in this case in April, 2019 including assets of Rs 83.51 crore in the form of unsold/unregistered inventory of a company named Udaipur Entertainment World Private Limited (UEWPL).
Multiple cases were filed against this attachment order and the company (UEWPL) was later admitted for insolvency before the National Company Law Tribunal (NCLT).
The resolution plan of the UEWPL was approved by the NCLT, Mumbai in February, 2022 as it also vacated the ED attachment order of April, 2019 (in respect of the attachment of properties of UEWPL).
"It is pertinent to mention that ED was not made a party in the proceedings before the NCLT," the agency said.
Later, the matter went to the Rajasthan High Court and after multiple hearings it ordered that the ED had "suffered" in the case as it was not impleaded as a party in the proceedings before the NCLT.
Soon after, the new management of UEWPL approached the Supreme Court challenging the Rajasthan HC order.
The apex court directed both parties to arrive at a consensus so as to "protect" the interest of the bona-fide homebuyers, who had invested their money in the project and could not get possession of their units/flats, due to aforesaid legal proceedings pending before different judicial forums, as per the ED.
"In view of the directions of the Hon'ble Supreme Court to protect the interest of the bona-fide homebuyers, the ED approached the Resolution Professional and new management of UEWPL seeking the details of all the homebuyers whose claims were admitted before the NCLT, Mumbai," it said.
The ED scrutinised the details of the homebuyers and submitted a 'No Objection Certificate' before the SC for restitution (restoration) of the attached properties for benefit of bona-fide homebuyers except some of the assets.
It said the agency took "proactive" approach to arrive at a "harmonious" solution without compromising the objectives of the PMLA and in interest of the 213 homebuyers who were suffering due to the "prolonged" litigation.
In view of the affidavit made by the ED, the SC issued an order on October 10 "wherein the attached properties, having a present market value of about Rs 175 crore now stand restituted under Section 8 (8) of the PMLA to the Successful Resolution Applicant of Udaipur Entertainment World Private Limited for the sole benefit of the genuine and innocent homebuyers."
This, the ED said, brings to an end the the plight of 213 innocent homebuyers who had been suffering for more than 12 years after putting their hard earned money and the protracted litigation of over seven years between UEWPL and the ED.
"The Hon'ble Supreme Court has passed the order on the peculiar facts of the case without going into the merits and has also observed that this shall not be treated as a precedent and the questions of law shall remain open to be decided in an appropriate case," the ED said.
The SC lauded the role of the ED saying "...we place on record our appreciation for the efforts made by the learned counsel for the parties and the DoE (Directorate of Enforcement or ED) in restoring the attached properties to secure the interests of genuine and innocent home buyers."
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Climate Change crisis: IMD to change parameters to declare heatwaves
Thiruvananthapuram (PTI): The IMD, along with its technical partners, will soon revise the criteria for declaring heatwave conditions in the country, as the present parameters do not suit India’s geographical conditions, according to official sources here.
Kerala, in particular, has faced difficulties in issuing heatwave warnings because of the limitations of the existing parameters.
Sources in the India Meteorological Department said the state experienced severe heat and humidity this summer and, for the first time, weather forecasts were made based on the anti-cyclone system that formed near the Karnataka–Maharashtra coast.
"We have never had an anti-cyclone system form closer to the South before, and this time we had to predict the weather based on it," a senior IMD official told PTI.
Anti-cyclonic systems are common over north-western parts of India, but this year one formed near the southern region, leading to unusually hot nights.
The anti-cyclone caused downward air movement, which pushed warm air towards the surface and prevented it from dispersing at night, the official added. As a result, Kerala recorded night temperatures 3 to 4 degrees Celsius above normal.
Because Kerala has experienced a steady temperature increase during the summer months for the last few years, changing the parameters for declaring heat waves would benefit the state, enabling the authorities to issue warnings more efficiently, the official added.
The IMD currently issues hot and humid weather warnings, although the situation warrants a heatwave warning, as the existing parameters do not allow the department to issue one.
At present, the IMD issues a heat wave warning in coastal areas when the maximum temperature reaches 37 degree Celsius or more with a temperature departure of 4.5 degree Celsius over the recorded maximum temperature.
For plains, the threshold is 40 degrees Celsius with a departure of 4.5 degrees Celsius or more from normal, while for hilly regions it is 30 degrees Celsius with a departure of 4.5 degrees Celsius or more.
Officials said the current heatwave declaration parameters also require these conditions to be recorded at two stations in the state to issue the warnings.
"In Kerala, we hardly get to record these conditions in two areas; moreover, we have severe heat stress that can easily cause a heat stroke. So we have decided to rework the heatwave declaration parameters and the changes will be implemented shortly. There will be a consultation with the Disaster Management Authority also before finalising the parameters," the official said.
Throughout Kerala, temperatures recorded this summer were three to four degrees Celsius higher than usual. The state also reported multiple cases of heatstroke despite regular warnings issued by the IMD and the state disaster management authority.
According to experts, Kerala has become a climate change hotspot, with a steady increase in atmospheric temperatures and erratic monsoons.
The IMD has also predicted a below-normal monsoon this year, as this is the first time two consecutive El Nino years are being witnessed.
