Don’t take coercive steps against Musaddilal Gems directors: High Court to ED

Hyderabad: Justice Khaja Sharat of the Telangana High Court on Tuesday issued interim orders directing the Enforcement Directorate to not take coercive steps against the directors of Musaddilal Gems and Jewels (India) Private Limited, following the recent search and seizure on October 17.

The ED operation ostensibly came against the backdrop of petitioners’ earlier relations with Sukesh Gupta of MBS Jewels, who is accused in many cases of alleged fraud and cheating.

From Musaddilal Gems, the ED had seized gold and jewelry worth over Rs 53.98 crore and cash and papers worth Rs 1.75 crore.

Senior counsel Bollam Chandrasen Reddy, representing Musaddilal Gems directors Shashank Gupta, Rudraksh Gupta and their mother Vandana Gupta, said neither the petitioners nor the firm was related to MBS Jewellers or Sukesh Gupta. Their father Anurag Gupta was a director with MBS Jewellers but he had left in 2013.

Chandrasen Reddy submitted that the seizure of property and cash was illegal on two grounds as stipulated under Section 17 of PMLA, 2002 — the reasons are to be recorded in writing before undertaking the search and seizure and the reasons are to be communicated immediately after the operation. The ED had not followed these requirements, senior counsels said.