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HC stayed ED`s investigation against Sukesh Gupta in MMTC case


Published on: January 20, 2023 | Updated on: January 20, 2023

Enforcement Directorate. (Photo: Representational Image)

Hyderabad: The Telangana High Court stayed the Enforcement Directorate’s investigation and proceedings against Sukesh Gupta, director of MBS Jewellers, in the case registered against him on charges of allegedly defrauding MMTC Limited, a public sector undertaking, in the purchase of gold bullion under the buyer’s credit scheme.

The MMTC said it had suffered a loss of Rs 220 crore. The CBI in its chargesheet alleged that Sukesh Gupta had entered into a criminal conspiracy with MMTC employees and received gold without foreign exchange cover and without adequate security deposits. His dues were regularly misreported to the MMTC head office.

Without squaring off the existing losses, his companies continued to lift gold from MMTC for their personal gain, the CBI alleged. Based on the CBI’s FIR, the Enforcement Directorate filed a case and attached the properties of Sukesh Gupta.

Sukesh Gupta approached the High Court and submitted that on account of the rupee value falling by 27 per cent, he was asked to pay additional five per cent margin money. When he refused, the case was registered.

Justice K. Surendar said that this issue was prima facie not on account of criminal activity but on account of accepting liability with regard to forex fluctuation.

In the scenario of the rupee value gaining, Sukesh Gupta would have gained and MMTC would have been liable to whatever extent.

The court said it deemed it appropriate to stay further proceedings until the point for consideration is determined. To assist the court on this point, the court appointed senior counsel T. Niranjan Reddy as amicus curiae.