The plea against such release made by State Bank of India, Stanchart and others was rejected by a division bench consisting of Justice S P Bharucha and Justice Suhas C Sen.
There are 18 notified parties who are income tax assessees. The highest amounts will be paid from the accounts of Harshad Mehta (Rs 34.39 crore), Jyothi Mehta (Rs 71.05 crore) and Growmore Research & Asset Management (Rs 58.68 crore).
According to the order, passed after hearing attorney general Ashok Desai, counsel for the custodian, the banks and the Mehtas, the amounts shall be paid in two weeks if available in the bank accounts. The amounts in fixed deposits shall be paid in two weeks of maturing of such deposits. The amounts so paid shall be appropriated towards income tax arrears of the notified parties excluding interest and penalty, the court clarified.
The payment shall be made on condition that in two weeks, the revenue secretary undertakes on behalf of the Union finance ministry that the Union government shall, within a month on calling upon to do so by the Supreme Court or the special court, bring back the money as directed to the court and to pay thereon interest at the rate of not less than 18 per cent as the SC for the special court may direct.
The present release of the amounts will be without prejudice to the rights and contentions of the parties, the court clarified.
During the hearing, the banks stressed that the amounts in banks did not belong to the notified parties. They were siphoned off from the banks. Even the special court has stated that the money belonged to the banks, counsel Shanti Bhushan submitted on behalf of the State Bank.
He argued that the ownership of the money is yet to be decided by the special court. If the court orders that the money has to be returned to the banks, there is no question of income tax realisation at this moment.
Counsel said that the notified parties were not concerned where the money goes. So the banks should be allowed to participate in the tax proceedings. An adverse order will make them sick, Shanti Bhushan pleaded and pointed out that the banks will give the highest interest possible.
The notified persons from whose accounts tax is proposed to be paid are Harshad Mehta, Ashwin Mehta, Hitesh Metha, Sudhir Mehta, Jyothi Mehta, Deepika Mehta, Pratima Mehta, Cascade Holdings, Orion Travels, Aatur Holdings, Growmore Exports, Growmore Research & Management, Growmore Leasing & Investment, A D Narottam, T B Ruia, Hiten Dalal, B C Dalal and Dhanraj Mills.
