Ellayah Case: Court Rules Against FIU amid Rs670M revelation

The Financial Intelligence Unit (FIU) has faced a significant setback in the Supreme Court. DNS International, a company owned by businessman Danesh Ellayah and closely associated with Sherry Singh, ex-CEO of Mauritius Telecom, successfully challenged the Freezing Order placed on their accounts by the FIU.

The Supreme Court concluded that DNS International primarily derived its income from payments authorised by the government on behalf of the Security Division of the Prime Minister’s Office, totalling over USD 15 million (around Rs670 million) since 2016. This crucial information was seemingly overlooked by the FIU when it sought and obtained a Freezing Order on the businessman’s accounts earlier this year.

Judge Karuna Gunesh-Balaghee revoked the Freezing Order, criticising the FIU for not making a fair and full disclosure during the legal proceedings.

DNS International, incorporated in the UAE in August 2016, provided “specialised equipment and software for national security and combating organised crime” to the Mauritian government. The State also made payments totalling USD 9.3 million and EUR 525,215.52 to DNS Consultancy Services Ltd for contracts initiated by the PMO.

Judge Gunesh-Balaghee emphasised that the FIU had an obligation to provide a complete and candid disclosure when applying for the Freezing Order. She supported the legal representatives of Danesh Ellayah, who demonstrated that the funds were from legitimate sources and resulted from legitimate business activities. 

Source: Le Mauricien