HC directs ED to withdraw LOC against Moin Qureshi's wife

The Delhi High Court today directed the Enforcement Directorate (ED) to withdraw within a week its look out circular (LOC) against controversial meat exporter Moin Qureshi's wife, who was summoned in connection with a money laundering probe against her husband.

The court passed the direction after the ED submitted that it was ready to withdraw the LOC with a condition that Qureshi's wife, Nasreen Qureshi, would inform it whenever she goes abroad.

"ED counsel, on instructions, states that they are ready to withdraw the LOC and the petitioner shall inform it before leaving for overseas and also on returning India and also to furnish her contact details while going abroad.
 

"This court does not find the request unreasonable. It is directed that LOC be withdrawn in one week," Justice Vibhu Bakhru said.

The court also decided not to consider at this stage, Nasreen's prayers that she be awarded Rs 10 lakh compensation for humiliation, mental and physical agony she has allegedly faced due to ED's action and action against ED officials.

When ED counsel Ajay Digpaul submitted that Nasreen should inform the agency before leaving the country, it was opposed by her advocate R K Handoo who said "why should we inform ED? We can inform the court if it wants".

He said there was no investigation against her and it was only against her husband.

To this, the judge said "the idea is to keep your freedom intact. They have the power to investigate and they should investigate."

Qureshi, arrested in August by ED in connection with a money laundering case, was today sent to judicial custody by a trial court.

The ED had earlier released Nasreen's passport, seized by it, after the court questioned its authority.

Nasreen had earlier sought a direction to the Centre, the ED and the authorities concerned to immediately hand over her original passport impounded by the agency in December 2016. She has also sought quashing and setting aside of the LOC issued by the ED against her.

The ED defended its decision, saying the wealth and life- style of Nasreen's husband and his family was disproportionate to the declared sources of income.

It had claimed it was noticed that she and her daughter were incurring expenses on hotel accommodation, purchase of merchandise and other expenses on a very large-scale at foreign destinations and the "payments were settled through money transfer by hawala channels".

ED's lawyer had submitted that the violation of the Foreign Exchange Management Act (FEMA) was detected during investigations against the petitioner, her husband and daughter for which investigation was separately initiated under the Act.

"After receipt of intelligence input that the petitioner (Nasreen) might escape from the country, the LOC was issued on October 25, 2016," the agency had said in its reply.

It had said Nasreen was also summoned for questioning in connection with the Prevention of Money Laundering Act (PMLA) case against her husband.

Qureshi, who returned to India in November last year, has been questioned multiple times here by the agency in the money laundering and hawala dealings case. ED had asked him to join the probe citing a court directive in this regard.

The high court, while hearing a plea filed by Qureshi, had in November last year directed him to return to India by mid-November and appear before the agency for questioning in this case. He is facing probe by ED as well as the I-T department.