ED urges HC to dismiss Gitanjali Gems' plea

The ED on Thursday urged the Delhi High Court to dismiss a plea of fugitive jeweller Mehul Choksi's firm Gitanjali Gems that challenged "illegal seizure of documents and articles" in money laundering cases related to the PNB scam.

The Enforcement Directorate (ED) told a bench of Justices S. Muralidhar and I.S. Mehta that the firm's petition is completely erroneous, misconceived and devoid of merits.

"The investigation qua Mehul Choksi and other suspected person has just begun and at this stage any adverse order with regard to the investigation will become an incentive to those standing to benefit from such proceeds of crime," the ED said in its affidavit.

The ED said that the proceed of crime generated through criminal activities arising out of the scheduled offences under the Prevention of Money Laundering Act (PMLA) were "layered and integrated in the veil of huge bullion/jewellery business of Mehul Choksi in order to project the same as untainted property, which includes the business of Gitanjali Gems.

In its affidavit, the ED said: "The jewellery stock of the petitioner (Gitanjali Gems) has been seized with the reason to believe, recorded in writing on the basis of information/documents in possession, that the petitioner company, being under the direct control of prime accused Mehul Choksi, is very much involved in the process of money laundering."

The ED termed the petition as an attempt to hinder and derail the ongoing investigation.

The probe agency also apprised the court that the man claiming to be authorised signatory of the company is not even an employee according to records and the notary who has signed the affidavit.

Further, the ED affidavit said that the company cleverly veils any reference to Mehul Choksi, who left India ahead of the multi-crore rupee Punjab National Bank scam coming to the notice of law enforcement agencies.

Further, the directorate said, it had issued summons to Choksi to join investigation and explain certain issues. However, he has completely sidestepped the legal system and decamped to foreign shores, refusing to join the investigation.

The court was hearing two pleas filed by Gitanjali Gems and billionaire Nirav Modi's firm Firestar Diamond challenging the seizure of documents and articles by the ED.

Gitanjali Gems challenged certain provision of the PMLA and called the ED's action as "absurd" and not in accordance with the object and purpose of the PMLA.

The firm also claimed that there was no connection of its property with the supposed proceeds of the crime.

Firestar Diamond had urged the court that the seizure of movable properties of Nirav Modi and deposit of the same with the PNB be quashed.

Diamond jeweller Nirav Modi and his uncle Mehul Choksi are accused of defrauding the PNB of Rs 12,600 crore, with Rs 1,300 crore being added to the fraud kitty on February 26.

--IANS

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