Local shareholder loses appeal of asset seizure in K-Park scam
“For the reasons stated, there is no basis for quashing the order of the Hulhumale Court,” Justice Abdul Maaniu wrote in his referral.
By
Fathmath Ahmed Shareef
The first appellate court ruled on Thursday that there is no place to annul the lower court's order to seize properties and assets that were acquired by money gained from frauds run by Hassan Mamdhooh in the name of Hanbo Maldives Company, where he was a minor shareholder.
This was heard in the High Court's judgement on the appeal filed by Mamdhooh seeking to quash the asset seizer order.
Mamdhooh first appealed against the seizure order issued by the Hulhumale Court in November last year. The Registrar of the High Court ruled that the case cannot be accepted by the court. Mamdhooh's defence then appealed the registrar's decision to the court's bench, which decided to accept the case last month.
The three-judge bench of the High Court, which heard the case, said:
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Mamdhooh could approach the lower court and seek a decision on the matter, but it was not done
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The High Court will hear the cases based on the defences and evidence presented in the lower court
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Since Mamdhooh has not appealed his case with the lower court that issued the order, as he could have, the High Court does not deem it is up to them to decide on the case
“For the reasons stated, there is no basis for quashing the order of the Hulhumale Court,” Justice Abdul Maaniu wrote in his judgement.
The ruling was supported by Justice Mohammed Niyaz and Justice Hussain Mazeed.
The order was issued under Section 51 of the Prevention of Money Laundering and Financing of Terrorism Act.
Section 51 of the Prevention of Financing of Terrorism Act provides for the imposition of interim measures and the prevention and seizure of transactions in money or property. Accordingly, the article states:
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Law enforcement agencies have the power to take temporary measures against money or property that may be confiscated under the Act
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The interim measures include the temporary seizure of the assets or property under a court order and the prohibition of transactions using the money or property
Among Mamdhooh's properties seized was a penthouse worth about MVR 8 million where he and his wife live.
The investigation found:
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Over 200 perfume bottles
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MVR 40,000 - 50,000 worth of handbags
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USD 10,000 - USD 25,000 worth of jewellery
Recently, prosecutor Hussain Shameem told reporters that Mamdooh had sold 41 apartments in K-Park to 107 people, sometimes the same apartment was sold to several.
More than 200 charges have been filed against him in the case. The prosecutor's office has asked the Criminal Court to take up over 100 charges against Mamdhooh alone, on February 13.
