ED attaches Rs 59.52 crore FD of Church of South India Trust Association over money laundering charges

New Delhi: The Directorate of Enforcement (ED) has issued a Provisional Attachment Order under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) attaching assets worth Rs.59.52 Crores. The attached assets are in the form of fixed deposits maintained and available with State Bank of India, Sudhamnagar Branch in the name of Church of South India Trust Association (CSITA).

Investigation under the provisions of the PMLA was initiated on the basis of a FIR registered at Ashoknagar Police Station, Bengaluru against CSITA for dishonestly entering into an arrangement for transfer of title of Defence Land measuring 7426.886 square meters (which was earlier leased to All Saints Church) with Bangalore Metro Rail Corporation Limited (BMRCL), a Government of Karnataka undertaking.

Part of the precinct where in All Saints Church, Bangalore is situated has been transferred to Bangalore Metro Rail Corporation Limited, a Government of Karnataka undertaking by CSITA for receiving compensation of Rs. 59.29 crores during the 2019. Earlier BMRCL had acquired this said land through Karnataka Industrial Areas Development Board (KIADB).

Investigation revealed that the title of the land belonged to Ministry of Defence, Government of India and it was only leased out to All Saints’ Church for conducting religious affairs of the church and no proprietary right of the land was ever transferred to the Church. CSITA illegally transferred the land belonging to Defence authorities to BMRCL. The compensation for the land required to be paid into Consolidated Fund of India as the rightful owner of the land is Ministry of Defence, Government of India.

CSITA being not the rightful owner of the land illegally barged into the shoes of Defence authorities and has transferred the property and obtained the proceeds amounting to Rs. 59.29 Crores from BMRCL. Accordingly identified assets to the tune of Rs.59.52 crores including accrued interest on the amount received has been provisionally attached under PMLA.