"Shareholders do not become owners": Rajya Sabha MP Kapil Sibal on ED attachment order on Herald case
Enforcement Directorate's action to attach properties worth Rs 751 crores in the National Herald Case, Rajya Sabha MP Kapil Sibal said that the ED is guided by a panel of lawyers and asked ED to specify the law which says that shareholders become owners of assets.
«ED should know what the law says. Properties are owned by companies. There are charges that Young India has taken over 99 per cent shares of AJL.
Shareholders do not own properties, properties are owned by companies. Therefore, Young Indians became owners of the assets of Rs 752 crore of AJL is wrong on the basis of law. Since Shareholders do not become owners, Young Indian is a section 25 company which means it is not for profit company.
If Young India became a shareholder of AJL, since both the companies never accused each other, then whose breach of trust occurred? Tell us which law says that shareholders become owners of assets,» said Rajya Sabha MP Kabil Sibal.
The Directorate of Enforcement (ED) has issued an order to provisionally attach properties worth Rs. 751.9 Crore in a money-laundering case investigated under the Prevention of Money Laundering Act (PMLA), 2002 against Associated Journals Limited (AJL) and Young Indian (YI) on November 21.
Investigation revealed that Associated Journals Ltd. (AJL) is in possession of proceeds of crime in the form of immovable properties spread across many cities of India such as Delhi, Mumbai and Lucknow to the tune of Rs.
