18 June 2024 Corruption >> Criminal Law   |   Property/Real Estate Law >> Property & Real Estate  

A former Custodian of Enemy Property (CEP) in Mumbai will stand trial on charges of criminal conspiracy and corruption related to a property sale. The case highlights the complexities of managing enemy property and the potential for misuse of authority.

Facts:

The case involves a property in Mumbai co-owned by siblings Mariam and Aziz Yacoob Tabani. After Aziz migrated to Pakistan, he was classified as an "enemy national" under the Enemy Property Act. Despite this, M/s. Jay Construction Co. entered into an agreement to purchase the entire property from both siblings. The Custodian of Enemy Property at the time of the sale approved it by issuing a No-Objection Certificate. However, subsequent CEPs issued certificates vesting the entire property with the government and challenged the sale's validity.

Former CEP Under Scrutiny:

The accused in this case is a former CEP who took steps to invalidate the sale. He issued a show cause notice to M/s. Jay Construction Co. questioning the transaction and then sought legal opinions on its legality. However, the prosecution alleges that he acted in conspiracy with the company.

Accusations and Defense:

Prosecutors believe the former CEP obtained a specific legal opinion to justify withdrawing the show cause notice and a vesting certificate issued by his predecessor. This, they argue, aimed to benefit M/s. Jay Construction Co. The former CEP, however, maintains his actions were based on a genuine legal interpretation.

Conclusion:

The court dismissed the former CEP's request to be discharged from the case, finding sufficient evidence to proceed with the trial. The key question to be answered is whether his actions stemmed from a criminal plot or a legitimate understanding of the law. The trial focuses on the former CEP's conduct, leaving the validity of the property sale undecided. The legal battle surrounding this property caught between enemy property regulations and a private company's purchase is likely to continue.

  ENEMY PROPERTY ACT, 1968    Prevention of Corruption Act, 1988