Lucknow: A Lucknow court on Wednesday declared former BSP MLC and businessman, Mohammed Haji Iqbal, a Fugitive Economic Offender (FEO) and ordered the confiscation of his assets worth Rs 996 crore in a money laundering case linked to irregularities in the sale of sugar mills in Uttar Pradesh.Rahul Prakash, special judge, passed the order on an application filed by the Enforcement Directorate (ED).In 2019, CBI registered an FIR charging that several state-owned sugar mills were sold at throwaway prices, causing significant loss to the public exchequer. Acting on the FIR, the ED began a money laundering probe and uncovered a financial network operated by Mohd Iqbal and his associates.The court found that Iqbal fled the country and is currently living in Dubai. Despite multiple summons issued by the ED through various means, he failed to join the investigation and a non-bailable warrant was issued against him in Nov 2025. The court held that his continued absence and refusal to return to India were enough to declare him a Fugitive Economic Offender.Kuldeep Srivastava, ED’s special prosecutor, said Iqbal used a web of shell companies and special purpose vehicles to acquire sugar mills. Funds generated through illegal mining activities were routed through layered transactions by entities like VK Health Solutions Pvt Ltd, masking the origin and ownership of the money.The investigation revealed that Rs 14.4 crore, Rs 5.5 crore, and Rs 10.6 crore were channelled into these companies for acquiring Baitalpur, Bhatni, and Shahganj sugar mills, respectively, which were later integrated into a corporate structure controlled by Iqbal.The court observed these assets were acquired at grossly undervalued prices and clearly constituted “proceeds of crime” under the law.
