The Hyderabad High Court directed the Enforcement Directorate (ED) and the companies of YS Jaganmohan Reddy on Wednesday, to approach the appellate tribunal.
The court was hearing a case by Jagan who challenged the ED's decision to attach and seize assets as part of a disproportionate assets case.
According to reports, the ED told the court that it would not dispossess the immovable assets of the companies, until the appellate authority took a decision.
Calling it a 'symbolic' possession, the ED stated that it had only issued a notice under Section 5(2) of the Prevention of Money Laundering Act (PMLA).
In the second week of February, the ED issued a notice to take possession of the properties of Jagan's companies, along with Lotus Pond, his house in Banjara Hills and the building which serves as the party headquarters.
Earlier, the Hyderabad High Court directed the ED not to seize fixed deposits and other assets owned by Jagan and his wife Bharati.
In a hearing, the judge disposed a bunch of writ pleas that had questioned the authority of the ED to take physical possession of properties that were earlier attached, in a case against Jagan and his companies.
In June last year, the ED stated that assets worth over Rs 749 crore, including Jagan’s palatial house in Hyderabad, had been attached in connection with its money laundering probe against him.
These assets owned by various group companies of the Andhra Pradesh opposition leader, included movable properties worth Rs 344.38 crore and immovable ones worth Rs 404.72 crore.
The ED's zonal office in Hyderabad said that it had registered a criminal case against Jaganmohan Reddy and other under the Prevention of Money Laundering Act (PMLA) based on a chargesheet filed by the Central Bureau of Investigation (CBI) in 'quid pro quo' case.
The chargesheet said that Jaganmohan Reddy, in criminal conspiracy with others, got allotted a mining lease to Bharathi Cement Corporation Private Limited illegally and received bribes from various persons/companies in the guise of investments in his group companies as 'quid pro quo' for undue favours granted to them by Andhra Pradesh government when Jagan's father YS Rajasekhara Reddy was the chief minister.
The ED said its investigations revealed that Jaganmohan Reddy laundered the proceeds of crime through his group companies Sandur Power, Classic Realty, Silicon Builders, Saraswati Power and Industries and 10 other companies in the form of investments, purchase of movable and immovable properties and third party payments etc.
It was one of 11 chargesheets filed by CBI against Jagan, senior government officials of Andhra Pradesh and businessmen in the 'quid pro quo' investment case.
The ED had already attached assets worth over Rs 1,000 crore in the overall PMLA cases.
The allegations against Jagan relate to the period 2004-2009. Jaganmohan reddy, who was arrested in May 2012, spent 16 months in jail before he was released on bail in 2013.
In December last year, the ED transferred Rs 177 crore from his companies, including Bharathi Cements, into the investigating agency's account.
The ED authorities reportedly took the step after their attachment order was confirmed by the adjudicating authority under the provisions of the Prevention of Money Laundering Act (PMLA).
Following this, Jagan moved court, questioning the ED's hurried move to transfer the funds.
IANS inputs