The Delhi High Court has asked the Enforcement Directorate (ED) to not take coercive steps on properties worth Rs 127 crore confiscated from Rana Kapoor's Group of Companies until an appellate tribunal is passed. The Bench of Rekha Palli said in an order, "directed that till the petitioner's pending appeal and stay application is taken up for consideration by the Tribunal as and when it becomes functional, both sides will maintain status quo qua the subject matter of the order dated 22.03.2021. Consequently, the respondents will stand restrained from taking any action against the petitioner in pursuance of the impugned order till then."
The court has also notified the daughters of Rana Kapoor, Roshini Kapoor, Radha Kapoor Khanna and Raakhe Kapoor Tandon from creating any third-party rights for the property till the Prevention of Money Laundering (PMLA) Appellate Tribunal becomes functional. ED had attached property worth Rs 127 crore in connection with an alleged Rs 17000-crore Yes Bank fraud case. An adjudicating authority upheld the provisional attachment on March 23, 2021. A Kapoor company approached the Delhi High Court and filed an appeal against the authority's order in the PMLA Appellate Tribunal. However, the appellate tribunal is not under function due to the retirement of its acting chairman.
The company said that ED might take "coercive steps" despite the order of the adjudicating authority. As per the reports, there are multiple cases against Kapoors for bank fraud. After examining the facts, the appeal will not be heard as the Appellate Tribunal is currently non-functional. The Delhi High Court will form an in form of an interim order to direct the parties to maintain the status quo on the said property. The court said, "Consequently, not only will ED stand restrained from acting in furtherance of the order, but the petitioner will also stand restrained from creating any third-party rights in subject properties, which form part of the attachment order, till the appeal is taken up for consideration by the tribunal.” Advocate Amit Mahajan represented ED and agreed that the tribunal is presently not functional in the case which began last year in August.