The Delhi High Court has declined to interfere with the ED proceedings to confirm the provisional attachment of a hotel in Aerocity, saying the company running it was being controlled and managed by Aditya Talwar, son of lobbyist Deepak Talwar, both of whom are facing money laundering allegations.
The Enforcement Directorate (ED) had provisionally attached Holiday Inn, worth over Rs 120 crore and operated by Wave Hospitality Ltd, in connection with a money laundering case against the Talwars.
A bench of Chief Justice Rajendra Menon and Justice Brijesh Sethi said on piercing the "corporate veil" of Wave Hospitality, it was revealed that the companies, which were its shareholders, were completely held by Aditya who has not cooperated with the investigation in the money laundering case against him.
"If the share-holding pattern of the petitioner company (Wave) and its share-holding companies are taken note of and if the proceeds of the crime amounting to Rs 272 crore on investigation seems to have come into the shareholders of companies owned by Aditya Talwar, and if we apply the theory of lifting of the veil, we have no iota of doubt that the petitioner company is controlled and managed by certain individuals like Deepak Talwar and Aditya Talwar who have substantial stakes and control over the petitioner company," the court said.
The observation by the bench came in response to the company's plea that it was a separate juristic entity and had no connection with Aditya or the case against him.
The company had challenged a notice issued to it by the ED asking it why the provisional attachment of its hotel should not be confirmed.
In its judgement dismissing the company's plea, the court said in the facts and circumstances of the case, it would not be appropriate to exercise its discretion in favour of persons "against whom there are serious allegations of money laundering and who are prima facie found to be not
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