Land transfer case: Karnataka HC stays ED proceedings against church trust

The Karnataka High Court has stayed all proceedings against the Church of South India Trust Association (CSITA) in connection with the alleged transfer of land to the Bangalore Metro Rail Corporation Ltd (BMRCL).

The Quartermaster General of the Defence Department had filed a complaint with the Ashok Nagar police station, based on which the Enforcement Directorate (ED) attached fixed deposits worth Rs 59.29 crore of CSITA.

In its complaint with the Ashok Nagar police in August, the Defence Department had alleged that CSITA ‘dishonestly’ transferred its land measuring 7426.886 sq mts to BMRCL. The land is part of survey number 275 belonging to the civil and military station. The complaint further stated that the land was leased to the All Saints’ Church while CSITA has fraudulently obtained the compensation amount.

On September 9, while issuing a provisional attachment order, ED stated that the compensation amount should have reached the Consolidated Fund of India. However, CSITA had barged into the shoes of defence authorities and transferred the property, ED said.

Appearing for CSITA, senior counsel B V Acharya said the Maharaja of Mysore granted the land in question and certain other lands to Lord Bishop and Archdeacon of Madras in 1884. The land currently is vested with CSITA and the bishop is only exercising his right of ownership after the grant. Besides, CSITA had transferred a portion of the land to the Bangalore Water Supply and Sewerage Board (BWSSB) which is put to use. The counsel argued that the Defence Department did not raise any objection then.

Justice Suraj Govindaraj stayed the investigations on the FIR by the Ashok Nagar police and the Enforcement Case Investigation Report (ECIR) registered by the ED after considering the records pertaining to the grant of land.

The ED had attached fixed deposits to the tune of Rs 59.52 crore, including accrued interest under the provisions of the Prevention of Money Laundering Act.