Money laundering: ED seeks freeze on bank accounts of JK Tyre, 8 others under PMLA

The Enforcement Directorate (ED) has written to the State Bank of India (SBI) seeking a freeze on nine accounts maintained by the bank, including JK Tyre and Industries. The letter was written by an Assistant Director of the Enforcement Directorate (ED) on July 13 to the Branch Manager of SBI in Connaught Place, Delhi.

As per the letter, ED has sought freezing of bank accounts of JK Tyre & Industries; Hamilton Housewares; KP Shangvi and sons; Nancy Krafts; Eastman Industries; Orbit Exports; Bharat Fashions and Apparels; Sheenuj & Co and RSWM, reported The Economic Times.

The Assistant Director of ED wrote, "It is requested to freeze the above bank accounts maintained in your bank in terms of Section 17 (1-A) of Prevention of Money Laundering Act, 2002, and no withdrawal should be allowed without prior permission of this office till further order."

Freezing of bank accounts means that the account holders will be unable to carry out any transactions.

The letter was subsequently produced by M/s Hamilton Housewares in the Delhi High Court. The company contended that the bank has frozen its bank account, which has a credit total of over 45 crores.

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ED counsel informed the High Court that a provincial governor in Brazil is under the scanner of Brazil authorities for alleged embezzlement of funds to the tune of 161 million (currency not mentioned).

The counsel informed the court that the Brazil government has requested India to probe certain bank accounts and the Indian government is under obligation to take action since it has an agreement with Brazil.

The Delhi High Court has issued notices to the Enforcement Directorate (ED) asking it to respond to Hamilton's plea.

The Enforcement Directorate last month initiated a process to freeze over 60 bank accounts in the country on the request of the Brazilian government in connection with a money laundering case in that country.

They said the agency has undertaken the action under the provision of the Prevention of Money Laundering Act (PMLA) in pursuance of a mutual agreement between the two nations to combat financial crimes.

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Original Source: https://www.moneycontrol.com/news/business/money-laundering-ed-seeks-freeze-on-bank-accounts-of-jk-tyre-8-others-under-pmla-5700231.html