Adarsh Soc moves SC for defreezing bank accounts

Last Updated: Friday, September 23, 2011 - 19:29

New Delhi: Scam-tainted Adarsh Cooperative
Housing Society of Mumbai on Friday approached the Supreme Court
seeking a direction to CBI to defreeze its two bank accounts
and allow it to raise money for day-to-day functioning.

The Society, whose accounts were freezed by CBI in
January after registering a case against it and its several
members for allegedly flouting norms, contended before a bench
of justices HL Dattu and CK Prasad that it should be allowed
to raise money from its members.

The bench, however, asked the Society to clarify whether
it wanted defreezing of its bank accounts or to raise money
from its members and open a new account.

It asked the Society to make its stand clear on Monday
when the case would come up for further hearing.

The Society approached the apex court after the Bombay
High Court had on July 27 dismissed its plea to defreeze its
bank accounts.

CBI had in January frozen two bank accounts of the
Society after registering a case against 14 accused including
several of its members for allegedly flouting norms.

Aggrieved, the Society moved the court seeking defreezing
of its accounts with the State Bank of India, having its
deposits of Rs 2 crore, to bear legal expenses and day-to-day
expenditure of the Society.

"In our opinion, the action of the investigating agency
in seizing the bank accounts of the Society is justified. The
money lying in the said accounts cannot be allowed to be
dissipated or depleted as the said amount would have great
relevance at the conclusion of the trial in case the trial
court decides to impose the sentence of fine," the High Court
had said.

The court had also not found any substance in the
contention of the Society that the CBI`s action had affected
its right to legal representation.

"In any case, bank accounts which are frozen for
investigation, particularly in respect of benami transactions,
cannot be defreezed on the ground that the petitioner-Society
wants to engage lawyer of its choice. The amounts lying in the
banks which create suspicion about commission of crime cannot
be allowed to be depleted," the judges had noted.

CBI has filed an FIR in the case and has named former
Maharashtra chief minister Ashok Chavan, retired army
officials, government officials on charges of criminal
conspiracy, fraud and misuse of their official powers.

PTI



First Published: Friday, September 23, 2011 - 19:29

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