Lagatar24 Desk
New Delhi: The Delhi High Court has upheld an order allowing the Enforcement Directorate (ED) to auction 26 luxury cars allegedly purchased with proceeds from the criminal activities of conman Sukesh Chandrashekhar. The court directed the ED to deposit the proceeds from the sale into an interest-bearing fixed deposit, ensuring the preservation of the value.
Justice Swarana Kanta Sharma dismissed the plea filed by Chandrashekhar’s wife, Leena Paulose, who challenged the trial court’s decision permitting the ED to dispose of the vehicles in accordance with the law. Paulose, currently in jail for a Rs 200 crore extortion case, had objected to the sale of the cars.
The court noted that vehicles are prone to natural decay and depreciation, affecting their value and functionality over time. “Storing a vehicle in a container warehouse for a long time results in decay, as environmental factors like weather conditions contribute to issues such as rust and corrosion,” Justice Sharma explained.
The high court emphasized that depreciation is a well-recognized phenomenon in the automobile industry. The Prevention of Money Laundering Act (PMLA) rules permit the sale of seized vehicles, with the proceeds being deposited into a fixed deposit. This approach ensures that if the trial concludes in favor of the accused, they receive the monetary value rather than a decayed, non-operational vehicle.
Paulose’s counsel argued that she was suffering from depression and memory loss due to prolonged isolation in jail and could only remember the registration numbers of two cars—Rolls Royce Ghost and Brabus. She claimed these cars were purchased in 2018, prior to the alleged offense, and thus should not be considered proceeds of crime. Additionally, she asserted that she was implicated in the case solely because of her association with Chandrashekhar and that she had an independent business of buying and selling cars.
The ED’s counsel countered that 17 of the 26 cars had already been auctioned following due process, rendering the petition infructuous. The high court noted contradictions in Paulose’s statements, pointing out her claims of suffering from depression and memory loss while also asserting detailed knowledge of her business activities.
The Delhi Police had registered an FIR against Chandrashekhar for allegedly duping the spouses of former Ranbaxy promoters, Shivinder Singh and Malvinder Singh, of Rs 200 crore. Chandrashekhar and Paulose face multiple investigations across the country, including a money laundering case registered by the ED. The police have also invoked the Maharashtra Control of Organised Crime Act (MCOCA) in the case.
The court’s decision to auction the luxury cars ensures the preservation of their value, protecting the interests of both the accused and the investigating agency.
