ED searches premises of realty firm in Chennai

Enforcement Directorate launches searches on Ocean Lifespaces India CEO's premises following fraud allegations, Supreme Court stays investigation.

The Enforcement Directorate on Friday, January 19, 2024, launched searches on the premises of Syvanus King Peter, Managing Director and Chief Executive Officer, Ocean Lifespaces India Private Limited, here.

According to police sources, the central agency opened an Enforcement Case Information Report (ECIR) based on a case registered by the Central Crime Branch of the Chennai Police against Mr. Peter.

Also read: CB-CID to probe charges of extortion in boardroom dispute of private firm

The CCB case in August 14, 2023, was booked on a complaint lodged by Balasubramanian Sriram who alleged that he was cheated by the company promoters. Mr. Sriram had also moved the National Company Law Tribunal challenging his removal as director of Ocean Lifespaces India.

The company directors, including Mr. Peter, moved the Madras High Court to quash the FIR. Refusing to quash the case, the court on December 15, 2023, ordered an investigation by the Crime Branch CID by an officer not below the rank of the Superintendent of Police.

Passing orders in the matter Justice G. Jayachandran said “this court finds that it is a matter of very serious nature and to be probed by a specialised agency. While the de facto complainant [Sriram] had approached the NCLT seeking remedy of relinquishing the minority share of 10% for a value of ₹13 crore, the payment of ₹50 crore by the petitioner to buy the shares per se appears to be murky and suspicious.”

However, the Supreme Court stayed the order of the Madras High Court early this week.