New Delhi: The Delhi High Court has permitted the sale of 26 luxury cars owned by conman Sukesh Chandrasekar, noting that these vehicles are susceptible to natural deterioration and depreciation.
These cars, seized by the Directorate of Enforcement (ED) in connection with a money laundering case linked to a Rs200 crore extortion scheme, were the subject of a petition filed by Sukesh’s wife, Leena Maria Paulose, challenging the sale order.
Justice Swarana Kanta Sharma dismissed Paulose’s petition, directing the ED to deposit the proceeds from the car sales into an interest-bearing fixed deposit.
“Vehicles naturally degrade over time, significantly impacting their value and functionality due to wear and tear,” Justice Sharma remarked.
The court highlighted that storing cars in container warehouses for extended periods leads to decay, influenced by environmental factors such as weather, rust, and corrosion, particularly harmful to a vehicle’s structure and components.
The bench noted the high maintenance costs associated with luxury cars like Rolls Royce and Ferrari, making them economically burdensome to upkeep and sell due to their rapid depreciation from the moment they leave the showroom.
The court clarified that the sale of these seized vehicles aligns with Section 8(6) of the Prevention of Money Laundering Act (PMLA), which mandates the deposit of proceeds from movable property sales pending trial verdicts.
Paulose had sought to overturn the trial court’s decisions regarding the seized cars, which were allegedly purchased with illicit funds. The court upheld the ED’s argument that the cars’ maintenance costs exceed their value, justifying their sale under Rule 4(2) of the PMLA rules.
The respondent argued that these luxury cars are subject to natural decay, making their maintenance costs prohibitive, a point uncontested by Paulose’s defence.
