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Forfeiture of Zaveris' deposit in SBI upheld

Our Bureau

HYDERABAD, May 6

THE Appellate Tribunal for Forfeited Property under the Chairmanship of Mr Justice J. Eswara Prasad has upheld the forfeiture of about Rs 74 lakh lying in deposit with State Bank of India as the illegally acquired property of Mumbai-based Mr Mahesh Kanti lal Zaveri and his wife.

According to a communique issued by the Appellate Tribunal, Mr Zaveri was detained under the provisions of Cofeposa and his wife's properties were forfeited by the Competent Authority, Mumbai, as illegally acquired properties earned through violation of FERA through two firms -- Italian Chain Manufacturing Company and A.M. Zaveri & Company. The detenu and his wife deposited the amount with SBI for import of gold.

The Enforcement Directorate and the Competent Authority directed SBI not to utilise the amount but the bank proceeded to import gold and incurred loss as the gold could not be lifted by the detenu due to the forfeiture proceedings.

The Appellate Tribunal held that the money deposit remained the property of the detenu and his wife and being illegally acquired property were rightly forfeited. Certain strictures passed by the Competent Authority against SBI were expunged by the tribun al while making observations that the bank has not been diligent in carrying out the orders of the Enforcement Directorate and has to face the consequences, the release said.

Mr Justice Prasad was the former Justice of Andhra Pradesh and Karnataka High Courts and was also the former Chairman of Land Grab Court of Andhra Pradesh.