Mumbai : The Enforcement Directorate (ED) on Wednesday arrested Kishor Mehta, former trustee of Lilavati Hospital in connection with alleged violation of Foreign Exchange Regulation Act (FERA) 1973 through his diamond business.

Mehta was arrested at 7 am from his residence and was produced at the Esplanade Court in the afternoon. The ED alleged that Mehta had exported diamonds worth US $ 2 million to Dubai and Hong Kong through various companies, in which he was on the board, in late 1990s but failed to declare the proceeds of the same.

A non bailable warrant was issued against Mehta for not appearing before ED after having sent repeated summons. The ED had booked Mehta under FERA in 2002 just before the Act was repealed and replaced by Foreign Exchange Management Act (FEMA). Mehta was booked under Section 56 of FERA where the amount involved exceeds Rs one lakh, with imprisonment which shall not be less than six months, but which may extend to seven years and with fine.  However, under FEMA, the ED lost the arresting power.

Advocate Abad Ponda who appeared for Mehta argued, “The accused is not residing at the given address and therefore has not received any summons.”

Additional Chief Metropolitan Magistrate Makrand Sudhir Badhankar granted bail to Mehta for Rs two lakh as surety. Mehta is directed to be present at the ED office everyday till 28th November and will have to appear before the regular court on November 29th.

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