HC strikes down LOC issued against Feroz Lakdawala, wife

The Bombay High Court on Monday quashed a Look-out circular (LOC) issued against Feroz Lakdawala, son of the late builder Yusuf Lakdawala

MUMBAI: The Bombay High Court on Monday quashed a Look-out circular (LOC) issued against Feroz Lakdawala, son of the late builder Yusuf Lakdawala, and his wife Noorie Lakdawala in connection with the Khandala land grab case involving Feroz’s father.

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This was after Lakdawala’s advocates pointed out an order from January wherein the Enforcement Directorate (ED) was granted three months to file a charge sheet against the couple. As no supplementary chargesheets were filed against either of them, the court found it fit to quash the LOC.

A bench of Justice Revati Mohite Dere and Justice Mnajusha Deshpande initially suspended the LOC to permit Feroz Lakdawala to travel to the USA and UAE to meet his extended family. This decision was prompted by a petition filed by Feroz and Noorie Lakdawala, contesting the travel restrictions imposed on them due to their association with the ongoing money laundering investigation related to the Khandala land grab case.

In their petition filed towards the end of 2023, Feroz asserted that neither he nor his wife had been implicated in any money laundering activities linked to his father. He argued that the LOC infringed upon their rights to equality and freedom, particularly given their roles as directors in various companies requiring international travel.

The ED, in its response to the court, acknowledged Feroz’s non-involvement as a suspect in the ongoing investigation but emphasised that the inquiry was still ongoing. However, the agency assured that if no charge sheet was filed against the petitioners within three months, they would not oppose the request to revoke the LOC.

During Monday’s hearing, advocate Shreeram Shirsat, representing the ED, acknowledged that the LOC had been periodically renewed until February 2023. However, he disclosed that Feroz had been summoned once and Noorie thrice over the years.

The bench noted the non-renewal of the LOC after February 2023, in accordance with the Consolidated Guidelines issued by the Ministry of Home Affairs. Moreover, the bench highlighted that the couple had not been summoned since 2019 and had not been chargesheeted even after the lapse of the mandated three months.

Considering these factors, the bench ruled to quash the LOC issued against the Lakdawalas.

The money laundering case against Yusuf Lakdawala, initiated by the Enforcement Directorate, stems from an FIR lodged by the Mumbai Police’s Economic Offences Wing in April 2019. The accusations revolve around the fraudulent acquisition of Khandala land previously owned by writer Mulk Raj Anand. Yusuf Lakdawala, along with alleged accomplices, purportedly falsified documents to claim ownership of the land. He was apprehended by the ED in May 2021 and passed away in custody in September 2021.

The charges against Yusuf Lakdawala include fabricating agreement papers dating back to 1949 and utilising counterfeit documents to obtain an affidavit and a confirmation deed. Additionally, attempts were allegedly made to tamper with the original land records at the Lonavala revenue office.