HC allows ED to sell 26 luxury cars owned by Sukesh Chandrashekar's wife
The Delhi high court has upheld an order giving permission to the Enforcement Directorate to sell 26 luxury cars purchased with Sukesh Chandrashekar's money
The Delhi high court on Tuesday upheld an order granting permission to the Enforcement Directorate (ED) to sell 26 high-end luxury cars which were allegedly bought by conman Sukesh Chandrashekar's wife Leela Paulose with proceeds of crime.
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The court stated that since vehicles depreciate over time due to natural decay, their value and functionality will be affected. Thus, they directed the ED to use the amount generated from the sale of the cars in an ‘interest-bearing’ fixed deposit.
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Leena Paulose, wife of Chandrashekar, who has also been arrested in a ₹200 crore extortion case, filed a plea against a trial court for giving the ED permission to dispose of the vehicles. Justice Swarana Kanta Sharma dismissed the plea and stated that the vehicles may be disposed of as per the law.
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{{/usCountry}}The trial court had also allowed a representative of the Delhi Police or Economic Offences Wing to participate in the auction process of the cars.
{{/usCountry}}The trial court had also allowed a representative of the Delhi Police or Economic Offences Wing to participate in the auction process of the cars.
{{/usCountry}}According to the high court, if a car is left stationary in a container warehouse for years, it can compromise its condition. In the hearing the court said, “Environmental factors such as weather conditions also contribute to this decay, causing issues such as rust and corrosion. Rust, in particular, can severely damage a vehicle’s structure and all other components."
{{/usCountry}}According to the high court, if a car is left stationary in a container warehouse for years, it can compromise its condition. In the hearing the court said, “Environmental factors such as weather conditions also contribute to this decay, causing issues such as rust and corrosion. Rust, in particular, can severely damage a vehicle’s structure and all other components."
{{/usCountry}}It also mentioned the expenses surrounding upkeep and maintenance.
{{/usCountry}}It also mentioned the expenses surrounding upkeep and maintenance.
{{/usCountry}}“Mechanical components of a vehicle also suffer from decay, requiring frequent and expensive maintenance to keep it operational, especially in the present case, where the vehicles involved are 26 high-end luxury cars such as Rolls Royce, Ferrari, Range Rover etc,” it added.
{{/usCountry}}“Mechanical components of a vehicle also suffer from decay, requiring frequent and expensive maintenance to keep it operational, especially in the present case, where the vehicles involved are 26 high-end luxury cars such as Rolls Royce, Ferrari, Range Rover etc,” it added.
{{/usCountry}}The Prevention of Money Laundering Act (PMLA) allows for the sale of seized vehicles and putting the money from the sale into a fixed deposit would address issues of depreciation and use. It benefits the accused and the investigating agency, as there isn't a waste of resources.
“For the accused, if the trial concludes in his favour after several years, he would receive the monetary value rather than a decayed, non-operational, rusted vehicle, almost reduced to junk. This ensures the accused does not suffer any financial loss due to the prolonged judicial process. For the investigating agency, this approach ensures that the value of the seized properties will be available to the investigating agency if the trial concludes in their favour,” the court said.
Paulose's counsel argued that she was suffering from depression with memory loss after extended isolation in jail for more than 16 months and was able to remember the registration numbers of only two cars - the Rolls Royce Ghost and Brabus.
These cars were purchased in 2018, according to Paulose, before the date of the alleged offence and could not have been bought with criminal proceeds. She also claimed that she was targeted for being Chandrashekhar's wife.
Paulose said that she had an independent business of buying and selling cars and most of them had legally valid loan agreements.
The ED questioned Paulose's memory, stating that one hand she could remember valid loan agreements but not more than two of the cars.
The ED's counsel argued that the petition by Paulose was pointless because, after two orders by the trial court in 2022 and 2023, 17 out of 26 cars had been auctioned already.
“A reasonable human being, who can purchase 26 luxurious cars, would have not only the documents and the details of her own income, but all the details of expenditure incurred on purchasing/ maintaining such luxury cars. Mrs Paulose, however, has placed no documents before this court to support her claims over the cars in question," the court stated.
The court added, "Further, she cannot be allowed to take shelter under the pretext that her incarceration in the jail is responsible for distress and depression leading to memory loss, more so when there is no medical evidence to support her claim,” Justice Sharma said.
The Delhi Police had earlier registered an FIR against Sukesh Chandrashekar for alleged fraud against the spouses of former promoters of Ranbaxy, Shivinder Singh and Malvinder Singh, of ₹200 crore. He also has been accused in several other ongoing cases across the country.
Both Chandrashekar and Paulose were arrested by the Delhi police, along with others, under the Maharashtra Control of Organised Crime Act (MCOCA) in the case. They have also been implicated by the ED in a money laundering case together.
The Delhi Police had alleged that Paulose and Chandrashekar along with others used hawala routes and created shell companies to safeguard the money earned from criminal acts.
With inputs from PTI
