HC quashes ED case against Sukesh in ₹220cr MMTC row

Hyderabad: Stating that outstanding dues cannot be shown as proceeds of crime, the Telangana high court has quashed the Enforcement Directorate (ED) case against jeweller and MBS Group founder Sukesh Gupta.
The ED case had stemmed from a CBI charge-sheet alleging that Gupta had defrauded Minerals and Metals Trading Corporation (MMTC) of ₹220 crore by misusing the gold import scheme in conspiracy with MMTC officials. Subsequently, the ED had attached MBS assets, which was later challenged in the HC by the company.
Dismissing the ED case, Justice K Surender said that discrepancies arose on account of foreign exchange fluctuations and at best the government can ask the trader to pay the difference, and the same can be shown as an outstanding amount if not already paid by the trader.
“Officials can file a civil suit for recovering the money. But this need not be criminalised,” the judge said.
The dispute arose soon after MBS signed an agreement with the public sector MMTC for availing the Centre’s gold import scheme introduced in 2012.
In 2013, following a complaint by MMTC, CBI booked a case against Gupta and his company. Subsequently, ED followed suit and also attached MBS assets.
The crux of the allegation was that MBS had received gold from MMTC and was liable to pay 5% margin money in accordance with the MoU due to lower rupee value owing to exchange rate fluctuation.
MBS was accused of conspiring with MMTC officials resulting in a loss of ₹220 crore for the PSU.
Jeweller's counsel Herur Rajesh Kumar said the court finding clearly states there was no proceeds of crime and, hence, there need not be any case from ED.