ED issues notices to society members in Adarsh scam, finally

Bombay HC had earlier rapped Enforcement Directorate, CBI and Income Tax department for delay in initiating action

A month after the Bombay High Court rebuke, the Enforcement Directorate (ED), late last week, finally issued notices to members of the controversial and “under probe” Adarsh Housing Society, seeking details of the sources of payments made to purchase apartments.

The contentious 31-storey building has been constructed on a plot in south Mumbai’s Colaba region, reportedly earmarked for housing Kargil war heroes and widows.

So far nine people, including two retired major-generals and three senior retired and serving IAS officials have been taken into custody by the Central Bureau of Investigation.
It is learnt that the ED was awaiting replies this week and may also move court seeking custody of scamsters recently arrested by the investigating agency.

Last month, the court while hearing the multiple-agencies Adarsh scam investigations, directed the Central Bureau of Investigation, Income-Tax (I-T) department and the Enforcement Directorate to hold a joint-meeting to collate information and complete the “delayed,” investigation quickly.

Tardy investigation

The court was incensed over the tardy investigation and castigated the CBI, questioning the delay in initiating action against the “erring” government officers and other accused. The country's premier investigating agency in its status report submitted before the court mentioned that so far it had filed FIR against 15 people alleging manipulation of land documents to usurp the plot.

The court after slamming the CBI also rapped the Enforcement Directorate (ED-FEMA) for its short-shrift replies. The special director ED who was present at the court blamed the CBI for “being cagey about its findings,” adding that carrying out investigations under the Prevention of Money Laundering Act would “lead to duplication of work amongst various agencies”.

All the three agencies were then directed to hold a joint meeting and the CBI was ordered to share specific information pertaining to money-laundering with the ED and findings of unaccounted wealth with the I-T department.

Following severe criticism from the court, the CBI, late last month swung into action and started picking key people involved in the scam. Meanwhile, the I-T officials have also started its scrutiny of accounts and moveable and immoveable assets held by the Adarsh Society members to ascertain the quantum of unaccounted money involved in the sale of apartments in the building.