Mumbai: The Enforcement Directorate (ED) has sought confiscation of 18 properties linked to gangster Iqbal Memon alias Iqbal Mirchi and his family members under the Fugitive Economic Offenders (FEO) Act. Three of the properties are located in Worli, while the remaining 15 are in Dubai.
Mirchi's Family Declared Fugitive Offenders
Mirchi, who had moved to London, has died. However, beneficiaries of his properties, including his wife Hajra Memon and sons Asif Memon and Junaid Memon, were declared fugitive economic offenders by a special court in February 2021. The process to confiscate their properties began thereafter.
In January this year, the ED approached the special court with an additional list of 18 properties linked to Memon that it seeks to confiscate under the FEO Act.
The agency has listed three Worli properties for confiscation: Sea View, Marium Lodge and Rabia Mansion. These properties are valued at `497 crore.
Dubai Assets Worth Over ₹203 Crore Also Sought for Confiscation
Under provisions of the FEO Act, the agency can seek confiscation of properties of a fugitive person located outside the country. Accordingly, the ED has also sought confiscation of 15 properties in Dubai valued at AED10.15 crore (`203.27 crore).
These include Hotel Midwest apartment owned by the trio and valued at AED9.30 crore, along with several units in Business Bay, Dubai, and three properties at Marsa Dubai.
Trusts and Corporate Holdings Used to Conceal Beneficial Ownership
While seeking confiscation, the ED said trust entities in India and individual or corporate holdings in Dubai were used to conceal the true beneficial ownership of these properties and project tainted assets as untainted. According to the agency, the properties were acquired, controlled and enjoyed by the Mirchi family through systematic concealment, misrepresentation and laundering of illicit funds.
The ED said Mirchi acquired three properties in Worli through proceeds of crime in September 1986 for `6.50 lakh. These include Sea View, Marium Lodge and Rabia Mansion, which together measure 4,970.41sq m. In 2019, Mirchi decided to develop these properties.
According to the ED, its investigation revealed that the Wadhawans of DHFL paid `154 crore to Mirchi abroad for acquisition of the Worli properties Sea View, Marium Lodge and Rabia Mansion.
The agency also said Kapil Wadhawan transferred 14 units to Asif Memon at a price of AED4.5 million against the prevailing market value of AED13 million. The transfer was made through Dheeraj & East Coast LLC, a company owned and controlled by the Wadhawans, to settle issues related to finalisation of the deal.
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