Radhika Mittal
A special Prevention of Money Laundering Act (PMLA) court in Mumbai has criticized the investigative agencies for their failure to arrest high-profile businessmen like Nirav Modi, Vijay Mallya, and Mehul Choksi in a timely manner, allowing them to flee the country. The observations were made by Judge MG Deshpande on May 30, 2024, during a hearing on a plea filed by Vyomesh Shah, an accused seeking relaxation of bail conditions to travel abroad for professional reasons.
Special prosecutor for the Enforcement Directorate (ED), Advocate Sunil Gonsalves, opposed Shah’s application, arguing that granting such a request could lead to a situation similar to those involving Nirav Modi, Mallya, and Choksi. In response, Judge Deshpande remarked that these businessmen were able to escape due to the investigating agencies’ failure to arrest them promptly.
“I thoughtfully examined this argument and felt it necessary to note that all these persons fled because of the failure of the investigating agencies concerned in not arresting them at proper time,” Judge Deshpande stated in his order.
Nirav Modi and Vijay Mallya, currently residing in the UK, have been declared Fugitive Economic Offenders (FEO) by Mumbai courts for their involvement in significant financial scams. Mehul Choksi is presently in Dominica, and the ED has filed an application to declare him an FEO.
Vyomesh Shah, the petitioner in the current case, is an accused in a 2022 money laundering case. He was summoned to court after the ED filed a chargesheet, and he was subsequently released on bail under conditions, including a prohibition on leaving the country without court permission. Shah argued that his professional responsibilities required frequent international travel, making it impractical to seek court approval for each trip.
After reviewing Shah’s application, Judge Deshpande granted the requested modification, allowing Shah to travel abroad. The judge emphasized that the court could not compensate for the investigative agencies’ lapses.
“It is the ED which basically allows such person to be scot free without any apprehensions of his travelling abroad, tampering and hampering evidence, flight risk, apprehension of dealing with complaint and assisting the said process etc. but for the first time when such person appears before the Court all such contentions and objections astonishingly crop up before the Court. So, this Court has repeatedly taken firm stand that, the Court cannot do what the ED basically failed to do,” the judge noted.
However, the court mandated that Shah inform the ED of his travel schedule and itinerary before each trip. Shah was represented by Senior Advocates Aabad Ponda, Sajal Yadav, and Aayusha Geruja.
Case Name: Vyomesh Shah v. ED
Bench: Judge MG Deshpande
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