Mumbai, Feb 07: A special court on Saturday dismissed a plea by absconding diamantaire Mehul Choksi, who sought directions to the Enforcement Directorate (ED) to attach and secure all remaining assets of Gitanjali Gems Ltd (GGL), including its trade receivables.
Choksi cites frozen receivables
Choksi’s lawyer argued that the ED had already attached various movable and immovable assets of GGL. According to the company’s balance sheet as of March 31, 2017, GGL had assets worth Rs 23,539 crore.
The plea stated that Choksi was unable to recover amounts from “trade receivables” as the entire business of GGL was shut down following the registration of an FIR by the CBI.
ED opposes plea, alleges abuse of process
ED prosecutor Kavita Patil strongly opposed the application. She contended that the ED had initiated proceedings against the accused under the Fugitive Economic Offenders Ordinance, 2018, for the confiscation of his properties due to his refusal to return to India to face prosecution. She argued that the applicant was constantly abusing the process of law by filing frivolous applications to delay the trial.
Court rejects request for directions
After hearing both sides, the court observed: “There is substance in the arguments of the Special Public Prosecutor that the accused is trying to recover his outstanding amounts through the ED by filing this application, which is not permissible. Under the PMLA, there are specific provisions and guidelines for investigating officers; an officer can take action against properties only when they have reason to believe that the said properties are linked to the proceeds of crime.”
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“The accused has no right at all to seek directions to the investigating officer to conduct an investigation in a specific direction, especially after the filing of the charge sheet,” the court said, rejecting the plea as not maintainable.
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