On Tuesday(16th July),The Delhi High Court upheld the ED’s decision to auction 26 luxury cars owned by Leela Paulose, wife of conman Sukesh Chandrashekhar, acquired through illicit funds. The court dismissed Paulose’s plea, emphasizing vehicle depreciation and instructed the proceeds be deposited into an interest-bearing fixed deposit.
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NEW DELHI: The Delhi High Court has affirmed the Enforcement Directorate’s (ED) decision to auction off 26 high-end luxury vehicles allegedly acquired by conman Sukesh Chandrashekar’s wife, Leela Paulose, using funds procured through illicit means.
On Tuesday(16th July), Justice Swarana Kanta Sharma dismissed a plea from Leela Paulose challenging a trial court’s ruling that permitted the sale of these vehicles. The court emphasized that the natural depreciation of vehicles over time diminishes their value and functionality, necessitating their sale. The ED was instructed to deposit the proceeds from the auction into an interest-bearing fixed deposit to preserve their value.
The court noted-
“Environmental factors such as weather conditions contribute to this deterioration, causing rust and corrosion. Rust, especially, can significantly harm a vehicle’s structure and other parts.”
The court further highlighted the financial burden associated with the maintenance and upkeep of these vehicles.
“The mechanical components of a vehicle also degrade over time, necessitating frequent and costly maintenance to keep them functional. This is particularly pertinent in this case, involving 26 high-end luxury cars like Rolls Royce, Ferrari, and Range Rover.”
-the court added.
Leena Paulose, currently incarcerated and facing charges in a Rs 200 crore extortion case, contended that the cars were purchased with legitimate funds from her independent business dealings prior to the alleged crimes. Her lawyer argued that she has been experiencing depression and memory loss due to over 16 months of isolation in jail, impairing her ability to recall details about the cars.
Paulose claimed-
“These cars were purchased in 2018, predating the alleged criminal activity, and thus could not have been bought with illicit funds.”
She also argued that she is being unfairly targeted due to her marriage to Chandrashekhar.
However, the court expressed skepticism regarding her claims.
“A reasonable individual capable of purchasing 26 luxury cars would typically possess documentation and financial records detailing their income and expenditure on such vehicles. However, Mrs. Paulose has not presented any documents to substantiate her ownership claims regarding the cars in question.”
-the court stated.
The court dismissed Paulose’s defense that her memory issues were a result of her incarceration, noting,
“Furthermore, she cannot cite her incarceration in jail as the cause of distress and memory loss, especially in the absence of medical evidence supporting her assertion.”
-Justice Sharma said.
Under the Prevention of Money Laundering Act (PMLA), the sale of seized vehicles is permitted, with the proceeds being placed into a fixed deposit to mitigate depreciation and usage concerns. This measure benefits both the accused and the investigating agency.
The court elaborated-
“If the accused is acquitted after several years of trial, they would receive the monetary value of the vehicles rather than acquiring decayed, non-functional, and rusted vehicles nearing junk status. This ensures that the accused does not incur financial losses due to prolonged legal proceedings. Simultaneously, this approach safeguards the value of seized assets for the investigating agency if the trial concludes in their favor.”
Sukesh Chandrashekar, along with his wife Leena Paulose, has been implicated in multiple legal cases, including a significant extortion scheme involving the spouses of former Ranbaxy promoters, Shivinder and Malvinder Singh. The Delhi Police initially registered an FIR against Chandrashekar, who faces several other allegations nationwide. Both he and Paulose were arrested under the Maharashtra Control of Organised Crime Act (MCOCA) and are also implicated in a money laundering case by the ED.
The trial court has also allowed a representative from the Delhi Police or Economic Offences Wing to participate in the auction process, ensuring transparency and proper oversight during the sale of the vehicles.
