Mumbai Court Approves ED’s Request to Attach More Iqbal Mirchi Properties Under FEO Act

A Special Court in Mumbai, designated under the Prevention of Money Laundering Act (PMLA), has allowed the Enforcement Directorate (ED) to attach more properties associated with the late underworld figure Iqbal Mirchi and his family under the Fugitive Economic Offenders (FEO) Act, 2018.

In an order passed on Wednesday, the court granted the ED the authority to attach properties detailed in Exhibit ‘C’ under Section 5(1) of the Fugitive Economic Offenders Act (FEOA), 2018. The court also permitted the filing of a supplementary application under Section 13 to include further assets identified during ongoing investigations.

The application was submitted by the ED, Mumbai Zonal Office-I, which stated that the properties were identified during further investigation and were already part of ongoing attachment proceedings under the PMLA.

The properties in question include three prime land parcels in Mumbai’s Worli area, Rabia Mansion, Marium Lodge, and Sea View, spanning approximately 4,970.41 square metres. Additionally, the ED has identified overseas assets in Dubai, including the Hotel Midwest Apartment and 14 real estate units in Corporate Bay and DEC Towers.

According to the ED, these assets were allegedly acquired using proceeds of crime generated by Iqbal Mirchi, also known as Iqbal Memon, and were held through proxies, including the Sir Mohammad Yusuf Trust and family members Asif Iqbal Memon, Junaid Iqbal Memon, and Hajra Iqbal Memon.

The agency informed the court that the accused had already been declared Fugitive Economic Offenders by the same court in February 2021, with directives for the seizure of their properties in India and abroad.

Investigations revealed that Iqbal Mirchi had purchased the Worli properties in 1986 through his firm M/s Rockside Enterprises for Rs 6.5 lakh. He allegedly used trusts and dummy tenants to conceal beneficial ownership and protect the assets from attachment by authorities.

The ED further alleged that over Rs 154 crore was routed overseas by the Wadhawans for the acquisition of the Worli properties, and additional Dubai assets were transferred as part of related financial settlements.

The court noted that the properties had already been provisionally attached under the PMLA through orders passed in 2019 and 2020, which were subsequently confirmed by the Adjudicating Authority. It observed that there was a 'strong reason to believe' that the assets constituted proceeds of crime or benami properties owned by persons already declared as fugitive economic offenders.

Allowing the application, the court held that the ED was permitted to attach the properties under Section 5(1) of the FEO Act, subject to compliance with due process of law.