SC Allows M3M Group's Plea for Property Substitution in ED Case

New Delhi, July 2 (PTI): The Supreme Court has granted real estate firm M3M Group's request to substitute their provisionally attached property, which was under investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002.

Justices P S Narasimha and R Mahadevan, presiding over the case, stipulated that the property substitution would adhere to nine specific conditions as recommended by the ED.

During the proceedings, senior counsel Dr. Abhishek Manu Singhvi represented the petitioner, and the affiliated companies, M/s. M3M India Pvt. Ltd. and M/s. M3M India Infrastructure Pvt. Ltd., submitted an affidavit agreeing to the conditions set by the court. "After thorough consideration and listening to Dr. Singhvi, we allow the property substitution as specified, with adherence to the outlined conditions," the bench remarked.

This ruling was in response to a plea by the M3M Group challenging the Punjab & Haryana High Court's decision to deny their request for property substitution.

Among the prominent conditions set forth by the ED is the need for the M3M Group to demonstrate a clear and marketable title of the new assets, along with undisputed ownership backed by verifiable documentation to the court's satisfaction.

Furthermore, the conditions stipulate that the substitute assets must be devoid of any encumbrances such as mortgages or third-party claims. A certificate evidencing this must be submitted by the petitioner, along with a notarized declaration confirming that the substituted property will not be sold, transferred, or otherwise disposed of during the ongoing legal proceedings.