HC upholds order allowing ED to sell 26 high-end luxury cars of Sukesh Chandrashekar, wife
New Delhi, Jul 16: The Delhi High Court has upheld an order granting permission to the Enforcement Directorate (ED) to sell 26 high-end luxury cars allegedly purchased from the proceeds of crime generated out of the criminal activities of alleged conman Sukesh Chandrashekar.
The high court, which opined vehicles are inherently subject to natural decay and depreciation over a period of time that impacts their value and functionality, directed the ED to keep the entire amount generated from sale of these cars in an ‘interest bearing’ fixed deposit.
Justice Swarana Kanta Sharma dismissed a plea filed by Chandrashekar’s wife Leena Paulose, arrested in a Rs 200 crore extortion case, challenging a trial court’s order by which the ED was granted the possession of 26 vehicles for disposal in accordance with the law.
The trial court had said a representative of the Delhi Police or Economic Offences Wing can also participate in the auction process of those vehicles.
The high court said storing a vehicle in a container warehouse for a long time results in decay since if a car is left stationary for years, several issues can compromise its condition.
“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.
“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. The upkeep and maintenance of the same is also expensive,” it said.
Depreciation of vehicles is also a well-recognised phenomenon in the automobile industry, the court said, adding the relevant rules of Prevention of Money Laundering Act (PMLA) allow sale of seized vehicles and depositing the proceeds into a fixed deposit addresses the issues.
“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,” it said.
In this manner, both the right of an accused as well as that of the investigating agency is protected since a piece of junk or scrap is of no use to either of them, the court said.
Paulose's counsel submitted that she was suffering from depression with memory loss after prolonged isolated life in jail for more than 16 months and she was able to remember the registration numbers of only two cars -- Rolls Royce Ghost and Brabus.
She said these two cars were purchased in 2018, which was much prior to the date of the alleged offence and by no stretch of imagination, these cars can come under the ambit and scope of proceeds of crime.
She further claimed that she has been implicated in the case only for the reason that she was the wife of Chandrashekar and added that she was having an independent business of buying and selling cars and most of the cars are taken on legally valid loan agreements.
The ED’s counsel argued that the petition has become infructuous since in view of the trial court’s two orders of 2022 and 2023, 17 out of 26 cars have already been auctioned after following the due process.
The high court noted certain contradictions in the statements of Paulose, who claimed to be a model, actor, dentist and successful businesswoman.
The court said on one breath Paulose claimed to be suffering from depression with memory loss due to prolonged incarceration and does not remember any details of the cars except five of them.
On the other hand, she stated that most of the cars were taken on loans, based on legally valid loan agreements and she was paying the EMIs for the same without fail and the vehicles are essential for continuing with her business activities.
“A reasonable human being, who is able to purchase 26 luxurious cars, would have not only the documents and the details qua 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.
“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, moreso when there is no medical evidence to support her claim,” Justice Sharma said.
The Delhi Police had earlier registered an FIR against Chandrashekar for allegedly duping the spouses of former promoters of Ranbaxy, Shivinder Singh and Malvinder Singh, of Rs 200 crore besides ongoing investigations against him in several cases across the country.
Chandrashekar and Paulose, who are also facing proceedings in a money laundering case registered by the ED, were earlier arrested by the Delhi Police, along with others.
The police has also invoked the Maharashtra Control of Organised Crime Act (MCOCA) in the case.
The Delhi Police had alleged that Paulose and Chandrashekar along with others used hawala routes, created shell companies to park the money earned from proceeds of crime.
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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
