Ram Charan, Chamundeswaranath Denied Immediate Relief in Emaar Case
HYDERABAD: Actor K Ram Charan Tej and former Andhra Ranji captain V Chamundeswaranath have failed to secure the immediate release of villa plots worth over ₹14 crore attached in the Emaar-APIIC money laundering case. The SAFEMA Appellate Tribunal directed them to establish before a special Prevention of Money Laundering Act (PMLA) court that they are bona fide purchasers, as reported by TOI.
The tribunal refused to release four villa plots at Boulder Hills claimed by Ram Charan, Chamundeswaranath, Bijay Kumar Mandhani and K Lalitha. However, it allowed them to prove that they bought the plots using accounted funds and had no connection with the alleged money laundering.
Rajesh Malhotra, member of the single-member Appellate Tribunal in New Delhi, passed the order on August 6. The appeals challenged the Enforcement Directorate’s (ED) confirmation of a provisional attachment order issued in September 2012.
Alleged irregularities in Manikonda project
The case stems from a 2011 CBI FIR related to a 535-acre integrated residential and commercial project at Manikonda.
Investigators alleged that the developer sold villa plots instead of completed villas. They also claimed the company collected ₹102.87 crore in cash over the recorded sale price of ₹5,000 per square yard. According to the investigation, the amount was neither accounted for nor shared with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
The tribunal noted that the buyers’ claims appeared credible if their agreements, payment records and supporting documents were genuine. It observed that if the developer falsely showed already allotted plots as “unsold”, it could amount to fraud against both the buyers and investigating agencies.
However, the tribunal said it could not decide whether the buyers acted in good faith or colluded with the accused. It ruled that the special PMLA court must determine the issue after examining evidence during trial.
ED asked to verify buyers’ claims
The tribunal also allowed the ED to reverify the buyers’ claims. If the agency concludes they were victims of misrepresentation or false declarations by the developer, it may submit a report recommending the release of the properties before the trial court.
If the ED does not complete the exercise within a reasonable period, the buyers may approach the special PMLA court directly.
The tribunal refused to lift the attachment or set aside the earlier order. However, it said that if the trial court recognises the appellants as bona fide purchasers, it may permit execution of sale deeds after the remaining consideration is deposited through fixed deposit receipts before the court.
Buyers claim they paid through accounted funds
The appellants argued that they responded to public advertisements and paid 95% of the agreed sale consideration through accounted funds. They said the Andhra Pradesh government stopped registrations in the project in October 2010, making it impossible to register the sale deeds.
They also alleged that the developer backdated cancellation letters to portray the plots as unsold.
The tribunal found differences in the evidence submitted by the four buyers. Chamundeswaranath and Lalitha produced agreements and payment records. Mandhani did not submit payment details. Ram Charan did not produce an agreement of sale, but an IDBI Bank statement reflected his payment, which the ED did not dispute.
ED maintains plots remained unsold
The ED argued that Emaar Hills Township Private Ltd remained in possession of the plots when authorities attached them. It said unregistered agreements of sale did not create ownership rights.
The agency relied on statements from company officials and cancellation letters dated October 4, 2010, to argue that the plots remained unsold. It also stated that officials took physical possession of the properties through a panchnama in September 2013.
The tribunal clarified that its observations would not affect the rights of either side during the PMLA trial.
The attached properties include Plot B-44 (1,458 sq yards; ₹3.64 crore) claimed by Chamundeswaranath, who is currently a BCCI Apex Council member; Plot B-46 (1,486 sq yards; ₹3.71 crore) claimed by Mandhani; Plot A-11 (1,192 sq yards; ₹2.98 crore) claimed by Lalitha; and Plot B-30 (1,545 sq yards; ₹3.86 crore) claimed by Ram Charan.
