ED moves to declare MGF promoter Shravan Gupta a Fugitive Economic Offender
New Delhi: In a significant escalation of its probe into high-profile financial crimes, the Enforcement Directorate (ED) has formally approached a special court to designate Shravan Gupta, the promoter of real estate firm MGF, as a “Fugitive Economic Offender” (FEO). This legal maneuver, if successful, will grant federal authorities the power to seize the businessman’s assets globally.
The agency’s move follows a pattern of persistent non-compliance by Gupta, who is accused of orchestrating massive financial irregularities. Sources familiar with the investigation confirmed on Thursday that the ED has submitted extensive documentation to the court, highlighting Gupta’s refusal to cooperate with investigators. Over the past several years, the promoter has reportedly ignored nine separate summons issued by the agency, choosing instead to remain outside the country.
A Legal Net for Economic Fugitives
The application is being processed under the Fugitive Economic Offenders Act of 2018. This legislation was enacted by the Indian government specifically to prevent those accused of major financial frauds—involving sums exceeding ₹100 crore—from evading justice by fleeing to foreign jurisdictions.
Beyond allowing the government to attach properties located anywhere in the world, the “fugitive” tag carries severe civil repercussions. Once officially declared a fugitive, an individual is legally barred from initiating or defending any civil litigation within Indian courts, effectively isolating them from the country’s legal recourse.
Allegations in Chopper Deal and Corporate Fraud
The ED’s case against Gupta is rooted in two major investigations. He is a key subject in the ongoing probe into the ₹3,737-crore VVIP chopper deal, where he is accused of receiving proceeds of crime linked to kickbacks channeled through a Mauritius-based shell company. A charge sheet in this matter was filed against him by the agency in February 2022.
Furthermore, Gupta is embroiled in allegations of large-scale corporate fraud involving Emaar India Ltd. Investigators claim that during his tenure as director and chairman of MGF Developments Ltd, he siphoned off approximately ₹180 crore from Emaar MGF Land Ltd, a joint venture between the Indian realty firm and Emaar PJSC of Dubai.
Gupta is believed to have exited India in November 2019 and is currently reported to be residing in London. Following an Interpol Red Notice issued in August 2023, the federal government is actively pursuing extradition efforts to bring him back to face trial.
Broader Crackdown on Financial Fugitives
The ED has intensified its use of the FEO Act as a primary tool to recover public and institutional funds lost to economic crimes. To date, the agency has initiated proceedings against 57 individuals under this law, successfully securing the “fugitive” designation for 22 of them.
High-profile names already on this list include diamantaire Nirav Modi, former liquor baron Vijay Mallya, and arms dealer Sanjay Bhandari. Through these initiatives, the agency has managed to seize assets valued at approximately ₹2,178 crore.
Despite multiple inquiries sent to MGF regarding the ongoing developments, the firm has not provided any official response. The special court is now expected to review the evidence submitted by the ED to decide whether to officially grant the fugitive status to the real estate promoter.
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