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Supreme Court admonishes ED, Former Congress MLA Surendra Panwar acquitted in money-laundering case

January 3, 2025, 7:48 pm

In a major relief to the former Haryana Congress MLA Surendra Panwar the Supreme Court has upheld the decision of the Punjab and Haryana High Court, in which Panwar’s arrest in a money laundering case was declared illegal.

Rejecting the special leave petition (SLP) filed by the Enforcement Directorate (ED), the court clarified that the High Court’s decision was based only on the legality of the arrest and it would not affect the merits of the case.

Panwar was arrested by the ED on July 20 last year on charges of illegal mining and money laundering. He alleged that after the arrest, he was kept for continuous interrogation for 15 hours.

However, the High Court rejected his arrest on 23 September 2024 and Panwar was released on September 25, ahead of voting of Haryana Assembly Elections which he contested on Congress ticket from Sonipat assembly constituency. Later the ED challenged the High Court’s decision in the Supreme Court.

Meanwhile, ED lawyer Zoheb Hussain argued in the Supreme Court that the High Court wrongly recorded that Panwar was questioned continuously for 14 hours and 40 minutes, claiming that Panwar was given a dinner break at night and the agency took care of human rights in the interrogation. However, the Supreme Court rejected this argument of the ED and called the long interrogation inhuman.

Dismissing the Enforcement Directorate (ED)’s plea against the High Court order, the Bench held, “We are not inclined to interfere with the finding of the high court that the arrest of the respondent was illegal.” The High Court’s findings, it said, were only for deciding whether Panwar’s arrest was illegal. “These findings will not affect the merits of the pending complaint under Section 44 of the Prevention of Money Laundering Act (PMLA), 2002,” said the Bench in its order on December 2.

The court said the ED’s approach in conducting the probe was a “shocking state of affairs” where a person was virtually forced to make a statement. ED’s counsel Zoheb Hussain said the high court had erred in its finding that Panwar was continuously quizzed for 14.40 hours, pointing to a dinner break during the interrogation. The lawyer said ED in a 2024 circular asked its officials to maintain certain standards of interrogations and to ensure people were not interrogated during late night and in early hours of the day.

On September 29, 2024, the High Court said primarily, as per the grounds of arrest, the allegation(s) against the petitioner pertained to illegal mining or supplying the illegally mined material. Therefore, it said, the foundation of the case was illegal mining whereas the rest of the allegations in all the nine FIRs were peripheral, relatable to illegal mining. “Of course, ‘illegal mining’ is an offence under Section 21 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), but neither ‘illegal mining’ nor the MMDR Act has been included under the schedule attached with the PMLA. In other words, ‘illegal mining’ is not a scheduled offence under the PMLA. Hence, prima facie, petitioner cannot be prosecuted on that count,” said the High Court.

It noted the ED itself said Panwar was issued summons under Section 50 of the PMLA and appeared before the agency at around 11 am in Gurugram on July 19, 2024 and was constantly interrogated till 1.40 a.m. (July 20, 2024) for 14 hours and 40 minutes. The High Court observed the continuous interrogation for over 14 hours “was not heroic” on ED’s part and it was rather against the dignity of a human being. “For future, in view of the mandate under Article 21 of the Constitution, this court is observing that Directorate of Enforcement shall take remedial measures and sensitize the officers to follow some reasonable time limit for investigation in one go against the suspect(s) in such cases,” it said.

Instead of subjecting someone to “unnecessary harassment” for such a long duration, the high court called for a necessary mechanism to carry out a fair investigation of the accused in line with the basic human rights laid down by the United Nations. It said there was no material with the ED to substantiate that petitioner was directly or indirectly involved in any process or activity connected with the proceeds of crime, in any manner or projected it as untainted by any means. Panwar, 55, was taken into custody in the wee hours of July 20, 2024, in Gurugram and produced before a special PMLA court in Ambala which sent him to the custody of the ED till July 29, 2024 in an illegal mining-linked money laundering case.

The agency raided the premises of the former Sonepat MLA in January, 2024, on charges of “large-scale illegal mining” in the Yamunanagar area of the State. The money-laundering case stems from several FIRs registered by the Haryana Police for probing alleged illegal mining of boulders, gravel and sand that took place in the past in Yamunanagar and nearby districts despite a ban imposed by the NGT. The ED is also probing an alleged fraud in the “e-rawana” scheme, an online portal that was introduced by the Haryana government in 2020 to simplify the collection of royalties and taxes and prevent tax evasion in mining areas. According to the ED, the alleged illegal mining generated slush funds of about Rs 400-500 crore over the last few years.

After the Supreme Court’s decision Panwar’s lawyers called it a victory of justice stating that the court’s ruling has proved that the action taken under political pressure cannot last.

Birla IT Case: ED Arrests Delhi-Based Importers Mayank and Tushar Dang Under PMLA

November 27, 2024, 3:16 pm

The Directorate of Enforcement (ED) has arrested Delhi-based importers Mayank Dang and Tushar Dang in connection with the Birfa IT case under the Prevention of Money Laundering Act (PMLA), 2002. The duo was presented before the Special Court in Dwarka, which remanded them to three days of ED custody until November 28, 2024. The ED plans to interrogate them further to gather more information related to the case.

The arrests are part of the ED’s ongoing efforts to dismantle alleged money laundering networks involved in illicit financial activities. In a statement on its official X account, the ED announced, “ED, Hqrs. The office arrested Delhi-based importers Mayank Dang and Tushar Dang on November 25, 2024, under the provisions of PMLA, 2002, in the Birfa IT Case. They were produced before the Hon’ble Special Court, Dwarka, which has remanded the accused to 3-day ED custody till November 28, 2024.”

Dang brothers were apprehended on November 25

The Dang brothers were apprehended on November 25, following the earlier arrests of two other suspects, Manideep Mago and Sanjay Sethi, in the same case. The investigation centers around the illegal transfer of foreign remittances amounting to ₹4,817 crore, facilitated through bogus and forged invoices for compensatory payments related to under-invoiced imports from China and Hong Kong.

The ED’s investigation revealed that the Dang brothers orchestrated a sophisticated syndicate involving a large network of Indian importers, traders, cash handlers, international Hawala agents, local Angandiya firms, and numerous Chinese manufacturers and suppliers, along with a dedicated chain of warehouses in major Chinese cities.

Further inquiries indicated that the Dang family operated several foreign entities in collusion with a key Chinese associate known as Mr. King. This individual procured goods from various Chinese manufacturers and suppliers, storing them in multiple warehouses before exporting them to firms owned by the Dang family.

The investigation also uncovered that the goods imported by the Dang brothers were significantly under-invoiced, with compensatory payments being sent abroad through Manideep Mago and Sanjay Sethi. These remittances were made against fraudulent invoices for services such as online server leases for crypto mining and educational software, which were never actually provided. Payments were directed to foreign companies controlled by Mago and his accomplices, who then transferred funds to Chinese exporters supplying products to India.

Additionally, the ED found that the offices of the Dang brothers and their clients served as regular cash pick-up points for employees of Mago and Sethi. This cash was funneled through various bank accounts operated by the accused before being sent abroad to pay Chinese exporters.

The investigation also revealed that the Dang brothers attempted to destroy evidence by instructing their employees and clients to alter or dispose of their digital devices following the initiation of the ED’s inquiry into the case.

Enforcement Directorate Issues New Guidelines on Statement Recording

October 29, 2024, 9:24 pm

The Enforcement Directorate (ED) has introduced updated guidelines on recording statements, emphasizing efforts to complete examinations during regular hours. The new internal guidelines follow directions from the Prevention of Money Laundering Act (PMLA) Court regarding statement recordings under Section 50 of the PMLA.

Timing and Preparation for Recording Statements

According to the guidelines, ED officers must be well-prepared with necessary documents and questionnaires before questioning summoned individuals. To avoid prolonged waiting times, officers should ensure examinations begin promptly at the appointed time and date. Aiming to limit the duration of questioning, the ED recommends completing the examination on the same day or the following day.

Special Provisions for Elderly and Ailing Individuals

The ED’s guidelines specify that examinations for elderly persons, those with serious medical conditions, or those who are otherwise infirm should strictly occur during regular hours. In such cases, officers may reschedule the examination to a mutually agreed date if necessary.

Extended Hours for Exceptional Cases

In exceptional circumstances—such as when there is credible information suggesting the risk of evidence concealment, dissipation of proceeds, or evasion—ED officers may extend statement recording beyond regular hours. However, these cases require documentation and prior approval from a senior ED official (deputy, joint, or additional director).

The ED stated that the guidelines are part of a larger effort to streamline processes, safeguard the integrity of investigations, and comply with PMLA court directives.

Nirav Modi’s PNB Fraud Case: ED Seizes Assets Worth Rs 29.75 Crore

September 11, 2024, 11:26 pm

The Enforcement Directorate (ED) has attached assets worth Rs 29.75 crore in connection with the infamous Rs 6,498.20 crore Punjab National Bank (PNB) fraud case involving fugitive diamantaire Nirav Modi. The ED’s Mumbai Zonal office has seized immovable properties and bank balances tied to Nirav Modi and his associates, marking a significant development in the long-running investigation.

Key Developments in the Nirav Modi Case:

Seizure Details: The assets attached by the ED include land, buildings, and funds held in bank accounts, all provisionally secured under the Prevention of Money Laundering Act (PMLA) 2002.

Broader Confiscations: Earlier, the ED had confiscated movable and immovable assets worth Rs 2,596 crore both in India and abroad, as part of the ongoing probe.

Fugitive Economic Offenders Act: Additionally, assets worth ₹692.90 crore were seized under the Fugitive Economic Offenders Act, 2018, by a special court in Mumbai.

Bank Recovery Efforts: As part of efforts to recover funds lost by victim banks such as PNB, assets amounting to Rs 1,052.42 crore have been successfully returned to PNB and consortium banks. These assets were physically handed over to the respective banks.

Investigative Background:
The investigation began after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) under sections of the Indian Penal Code and the Prevention of Corruption Act, leading the ED to launch a detailed probe. Since then, the ED has worked tirelessly to track down and secure the assets associated with Nirav Modi’s elaborate financial fraud scheme.

Extradition and Legal Battles:
Nirav Modi, currently lodged in a UK prison, has faced multiple failed attempts to secure bail. His seventh bail plea was denied by a UK court earlier this year, and he later withdrew an appeal filed before the UK High Court. Extradition proceedings are ongoing, as Indian authorities continue to push for his return to face trial.

Rajya Sabha MP Kapil Sibal: ‘PMLA is Pradhan Mantri ki Lal Aankh’

May 21, 2024, 10:35 am

Rajya Sabha MP Kapil Sibal asserted that the Prevention of Money Laundering Act (PMLA) actually stands for “Pradhan Mantri ki Lal Ankh” (PM’s glare) and is unrelated to money laundering.

“PMLA is Pradhan Mantri ki Lak Aankh. It has nothing to do with Prevention of Money Laundering Act. It means you can send them over to ED who can do whatever they wish to do,” Sibal remarked during a candid discussion with ANI.

Sibal explained his reasoning behind calling the PMLA an arbitrary law, highlighting that the Directorate of Enforcement (ED), the agency responsible for enforcing economic laws, can arrest any suspect based on oral statements alone.

“If you want to catch anyone, you can send him over to ED and then take the oral statement of anyone. The person can say anything orally, claiming to whom any random property belongs, and based on his statement, the accused is arrested. The case is then left hanging,” Sibal elaborated.

He also pointed out another method of arrest under PMLA: “There are several ways of doing it. One of them is, you can go to a place that has land measuring five acres or two acres. You can take anyone’s statement claiming that this five or two-acre land belongs to the Chief Minister. You do not have any evidence. You serve a notice to the Chief Minister. You do not disclose the statement. You tell the Chief Minister that this land belongs to him, to which he disagrees. Following this, he is arrested. This is what is happening. Therefore it is Pradhan Mantri ki Lak Aankh,” he said.

The Senior Advocate also mentioned that sometimes the ED does not even have an “approver.” An approver is an accomplice who becomes a witness after the court grants them pardon in return for their testimony against another.

Sibal claimed that in some cases, the person who gives the oral statement later becomes an “approver” after multiple prior statements. “The approver comes only in his twelfth statement. In the initial statements, he did not take any name. He became the approver in his twelfth statement and he gave the money,” he noted.

Explaining why he previously referred to the PMLA as a “Frankenstein monster,” Sibal argued that the money laundering law is merely a “strong arm” of the government, used to arrest individuals based solely on oral statements.

“It is a strong arm of the government. It has nothing to do with law enforcement. There is no evidence against (Arvind) Kejriwal, or (Manish) Sisodia or (Satyendar) Jain. There is no money trail. Nobody says how much money is given to whom. There is no bank account or anything. There are just oral statements of people,” the Rajya Sabha MP said.

When asked why courts do not easily grant bail to those arrested under PMLA, Sibal responded, “Ask the courts. I keep on asking. I don’t get any response.”

The Opposition has frequently accused the Narendra Modi government of misusing central investigating agencies like the ED to target and harass political opponents.

ED can’t arrest after special court takes cognizance : SC

May 17, 2024, 9:31 am

The Supreme Court ruled that the Enforcement Directorate (ED) cannot arrest an accused person after a special court has taken cognizance of the complaint.

According to Justices Abhay S. Oka and Ujjal Bhuyan, the ED must request for custody to the appropriate court, which will only grant custody if it is persuaded that detention for questioning is necessary.

The court emphasized that if an accused person appears for further inquiry into the same offence after being summons, the ED must petition to the Special Court for imprisonment. The accused was never placed under arrest pursuant to Section 19 of the Prevention of Money Laundering Act (PMLA), but the Supreme Court made it apparent that custody could only be approved in the event that it is determined that questioning under custody is required.

This ruling concerned whether an accused person under the PMLA must pass the demanding twin test in order to be granted bail, even in cases when the chargesheet is taken up by the special court.

In a money laundering case, Tarsem Lal, the petitioner, had challenged the Punjab and Haryana High Court’s December 2023 judgement that refused him anticipatory bail.

The accused who comes before the court in answer to a summons will not be required to seek for bail, the Supreme Court said in today’s order.

Senior Lawyer Siddharth Luthra argued on behalf of the petitioner that Section 19 of the PMLA prohibits arrests of anyone who is already named as an accused at the post-complaint stage without an arrest.

He clarified further that since the accused had not been arrested under Section 19 during the investigation, the Special Court would not be bound by the stringent requirements of Section 45(1)(ii) of the PMLA when considering their application for bail or bond, whether interim or final, when the accused appears in response to a summons or warrant.

SC: ED Cannot Arrest Accused Under PMLA After Special Court’s Cognisance

May 16, 2024, 11:41 am

In a significant ruling, the Supreme Court has stated that the Enforcement Directorate (ED) is not authorized to arrest accused individuals under the provisions of the Prevention of Money Laundering Act (PMLA) once a special court has taken cognisance of the complaint. This ruling clarifies the procedural limitations on ED’s powers post-cognisance by a special court.

Additionally, the apex court outlined that if the ED deems custody necessary for interrogation, it must file an application before the concerned court. Subsequently, the court can grant custody only after thoroughly assessing the reasons presented by the probe agency, ensuring that custodial interrogation is indeed warranted.

This decision sets a legal precedent regarding the protocol for arrests and custodial matters under the PMLA, emphasizing the judiciary’s role in overseeing investigative processes.

ED attaches Rs 5.7 crore assets in Uttar Pradesh post-matric scholarship scam

March 14, 2024, 4:31 pm

The Enforcement Directorate (ED) has seized properties valued at Rs 5.7 crore under the Prevention of Money Laundering Act (PMLA) in connection with the Uttar Pradesh post-matric scholarship scam, the agency announced on Thursday. The attached properties include the college buildings of the SS Institute of Management located in the Baksi Ka Talab area of Lucknow, the capital of Uttar Pradesh.

This latest attachment is the fourth in the case, bringing the total value of attached properties to Rs 15.7 crore. The SS group of institutes, which operates schools and colleges in Lucknow, conducts various management courses, including BBA and MBA programs.

According to the ED, the chairman of the SS group, Praveen Chauhan, along with Ishrat Zafari of the Hagia Group of institutes and his staff, forged documents for hundreds of students and fraudulently obtained Rs 7.40 crore in scholarship funds from the government. “Out of those, movable and immovable properties worth Rs 1.7 crore have already been attached,” the agency stated.

The ED’s investigation began based on intelligence and an FIR filed by the Uttar Pradesh Police in the scholarship scam. It was revealed that managers and trustees of various colleges admitted fake students and applied for scholarships in their names through the government portal.

“The scholarship so received for the fake PH category and handicapped students was transferred to accounts of colleges and thereafter withdrawn in cash or transferred to personal accounts or used for land purchases, building construction, etc., thus, their actions resulted in the embezzlement of more than Rs 100 crore of government money from scholarships by depriving the needy and genuine students,” the ED said.

Six accused persons have been arrested in the case and are in judicial custody. Three provisional attachment orders attaching various immovable and movable properties worth Rs 10 crore in the name of managers and trustees of various colleges have been issued. Additionally, one prosecution complaint and two supplementary prosecution complaints have been filed against five accused persons before the Special (PMLA) Court, which has taken cognizance of the same.

Jharkhand CM Soren summoned by ED in money laundering case

December 30, 2023, 10:27 am

The Enforcement Directorate has issued a summons to Jharkhand Chief Minister Hemant Soren for interrogation related to an alleged land scam, according to sources on Saturday. CM Soren is required to appear at the ED’s Delhi office to have his statement recorded on a mutually agreed date under the Prevention of Money Laundering Act, 2002. This marks the seventh time the Chief Minister has been summoned by the agency.

As per the sources, “ED issued a seventh summons to CM Hemant Soren under section 50 of the PMLA asking him to record his statement at the place, date, and time mutually convenient to him as well as the agency in the ongoing land scam.” CM Soren was previously summoned on December 12, but he did not attend the proceedings, drawing criticism from the BJP.

This ongoing saga began in mid-August when Soren was first summoned by the ED in connection with a land ‘scam’ case. Despite subsequent summonses on August 24, September 9, and September 23, the Chief Minister declined to appear, citing prior commitments. In a letter to the agency, Soren asserted that he had provided all necessary documents and information and suggested referring to the shared documents for any required information. He accused the ED of summoning him at the behest of its “political masters.”

Robert Vadra ‘renovated and stayed’ at London property from ‘proceeds of crime’: ED

December 27, 2023, 5:26 am

The Enforcement Directorate on Tuesday alleged that Robert Vadra, son-in-law of former Congress president Sonia Gandhi, “renovated and stayed” at a London property which is a “proceeds of crime” in a money laundering case against alleged middleman Sanjay Bhandari.
Bhandari fled to the UK in 2016 and the British government approved his extradition to India in January this year acting on the legal request made by the ED and the Central Bureau of Investigation (CBI).

The two federal agencies are probing charges of money laundering and tax evasion against the businessman for holding alleged undisclosed assets abroad. This is the first time that the federal agency has named Vadra in this case.
The ED issued a statement stating that it has filed a fresh charge sheet in this case against C C or Cheruvathur Chakutty Thampi, a UAE-based NRI businessman, and UK national Sumit Chadha.
Thampi was arrested in this case in January 2020 and the ED alleged he was a “close associate” of Vadra. Thampi is currently out on bail.

“Sanjay Bhandari held various undisclosed foreign income and assets including the following properties at no 12 Bryanston Square, London and 6 Grosvenor Hill Court, London.
“These assets are proceeds of crime as per the provisions of the PMLA and C C Thampi and Sumit Chadha have been found to be involved in the concealment and use of these proceeds of crime,” the ED charged.
The probe found, it said, that Thampi “is a close associate of Mr Robert Vadra”.
“Mr Robert Vadra not only renovated the aforesaid property at 12 Bryanston Square, London through Sumit Chadha but also stayed in the same.

“Mr Robert Vadra as well as C C Thampi purchased a huge chunk of land at Faridabad (near Delhi) and had financial transactions with each other,” the ED claimed.
Vadra, the husband of Congress leader Priyanka Gandhi Vadra, has been questioned by the ED in the past and he has denied wrongdoing.
The ED said the Delhi court took cognisance of the supplementary prosecution complaint, filed under the criminal sections of the Prevention of Money Laundering Act (PMLA) in November, on December 22.

Official sources told PTI that the court also issued summons to Thampi and Chadha after taking cognisance of the charge sheet. It also issued a non-bailable arrest warrant against Chadha who has not joined the probe till now despite ED issuing summons to him.
Bhandari’s niece – Puja Chadha – is married to Sumit Chadha, a UK national.

The ED filed the criminal case of money laundering against Bhandari and others in February 2017 taking cognisance of an Income Tax Department charge sheet filed against him under the anti-black money law of 2015.
The ED told the court in its supplementary charge sheet that Chadha “assisted Sanjay Bhandari in concealment, acquisition, possession and use of proceeds of crime and management/ maintenance of properties beneficially owned by accused Sanjay Bhandari.”

“He (Chadha) had various transactions with accused Sanjay Bhandari and his associates. He has been found actively involved in concealing the proceeds of crime,” the ED said in the chargesheet. The court has now listed the matter to be heard on January 29 next year.

ED arrests Indore businessman linked to housing cooperative scam

June 6, 2023, 2:38 pm

The Enforcement Directorate (ED) has arrested one Dilip Sisodiya, an Indore-based businessman under the Prevention of Money Laundering Act (PMLA) in a case linked to the alleged illegal sale of co-operative land valued at more than Rs 1,000 crore in the city.

Deepak Sisodiya alias Deepak Jain Madda was arrested on 3 June, ED sources said, adding that a special PMLA court had granted the agency custody of the accused for seven days.

The investigation was initiated on the basis of various FIRs lodged in Indore, related to the illegal sale and alienation of the lands of Housing Co-operative Societies by Sisodiya and other builders and developers. Sisodiya, in connivance with others, sold huge parcels of land belonging to societies at lesser rates, flouting the rules applicable to Housing Co-operative Societies. The market value of these lands is estimated to be over Rs 1,000 crore.

Housing Co-operative Societies are granted exemptions under Section 20 of the Urban Land Ceiling Act, which allows them to acquire land exceeding the landholding limit prescribed for various entities.

The ED investigation found that Sisodiya was able to enter some of these Societies by getting elected as an office-bearer through manipulated votes. He also indirectly influenced decision-making by placing selected individuals in key decision-making positions in the Housing Co-operative Society. Earlier, the ED searched the residences of Dilip Sisodiya and his associates and seized Rs 91.21 lakh in cash along with other incriminating documents.

Judicial remand for suspended IAS officer Chhavi Ranjan till 25 May: PMLA court

May 16, 2023, 4:25 pm

Suspended Jharkhand cadre IAS officer Chhavi Ranjan, who was arrested by the Enforcement Directorate in an alleged land scam case, has been sent to judicial remand till 25 May.
On Tuesday, a special PMLA court in Ranchi sent Ranjan into custody. Ranjan was arrested by the ED in a case related to illegally grabbing and selling land in Ranchi on 6 May.

After being arrested, Ranjan, the Director of the Social Welfare Department, Jharkhand, has been suspended by the Jharkhand government.

The Enforcement Directorate has made significant progress in the land scam case, resulting in the arrest of seven individuals.

These accused individuals have been presented in court and subsequently sentenced to judicial custody.

The ED has uncovered an alleged nexus involved in this case, which is accused of fraudulent practices, including the sale of multiple plots through document forgery. Shockingly, even the legitimate owners of the plots are unaware that their properties have been sold, according to sources from the ED.

Delhi ex-minister Satyendra Jain moves SC seeking bail in money laundering case

May 15, 2023, 3:50 pm

Satyendra Jain, a former Delhi minister, has approached the Supreme Court to seek bail in a money laundering case filed against him. He has contested the decision of the Delhi High Court, which rejected his bail application in the same money laundering case.

On April 6, the Delhi High Court dismissed the bail plea of Satyendra Jain. The HC while dismissing the Satyendar Jain bail plea stated that the applicant is an influential person and has the potential of tampering with evidence. Satyender Jain/applicant, at this stage, can’t be held to clear the twin conditions of the Prevention of Money Laundering Act (PMLA).

The HC had kept the order reserved on March 21 after the conclusion of the submissions made by the defence and prosecution sides after multiple hearings. During arguments, Additional Solicitor General (ASG) SV Raju appeared for Enforcement Directorate contented that money laundering is crystal clear against Jain and other co-accused.

In his bail plea, Jain stated, “I appeared before ED on 7 occasions. I have cooperated and participated in the investigation. I was arrested 5 years down the line in 2022.”
On November 17, 2022, the trial court dismissed the bail petition of Satyendar Jain.

ED raids homes of Atiq and his relative Khalid Zafar

April 13, 2023, 10:24 am

The Enforcement Directorate (ED) seized Rs 75 lakhs in Indian and foreign currency, as well as documents pertaining to nearly 200 bank accounts and 50 shell entities, from the jailed gangster-turned-politician Atiq Ahmad and his associates’ premises. The seizure came after an ED sleuth raid on 15 locations in Uttar Pradesh’s Prayagraj on Wednesday. The documents seized during these raids related to nearly 200 bank accounts and 50 shell entities, according to the ED, were used for laundering ill-gotten money generated through extortion, land grabbing, and other criminal activities.
“Over 100 properties in the names of Atiq Ahmad’s close associates and firms have also been discovered. These are believed to be Atiq’s benami properties “According to the federal agency. “The searches have also turned up cash transactions worth more than 50 crores. Documents pertaining to properties (forcibly) purchased from farmers, allegedly through criminal intimidation, have also been discovered.”
The agency raided the homes of Atiq and his relative Khalid Zafar, his advocate-cum-accomplice Saulat Hanif Khan, his associates Asad, Vadood Ahmad, Kali, Mohsin, chartered accountant Sabeeh Ahmad, chartered accountant Asif Jafri, Seetaram Shukla (accountant), real estate developers Sanjeev Aggarwal and Deepak Bhargav on Wednesday.
The raids were part of the ED’s ongoing money laundering investigation into Atiq and those associated with him. The raids occurred while Ahmad was being transported to Prayagraj from the Sabarmati Jail in Gujarat for his appearance in a local court in connection with the Umesh Pal murder case. The case in which Ahmad is on trial is linked to the February 24 murder of Pal and his two police security guards outside his home in Prayagraj’s Dhoomanganj area. Uttar Pradesh Police had registered a First Information Report (FIR) on February 25 against Ahmad, his brother Ashraf, his wife Shaista Parveen, two sons, aides Guddu Muslim and Ghulam, and nine others following a complaint lodged by Pal’s wife.
In 2021, the ED had attached immovable and movable assets, consisting of land and money in several bank accounts worth Rs 8.14 crore, belonging to mafia-turned-politician Atiq Ahmad and his wife in connection with the money laundering case.
Land property situated at mauza Katka, Paragana Jhunsi, Tehsil Phulpur, in name of Shaista Parveen, wife of Ahmad was attached. This was acquired by Ahmad for only Rs 4.5 crore which is far below the government’s value of Rs 6.86 crore. In addition, the ED had also attached a bank account balance of Rs 1.28 crore lying in 10 bank accounts of Ahmad and one account of Shaista Parveen.
The ED initiated an investigation under the Prevention of Money Laundering Act (PMLA) after taking cognizance of several FIRs lodged against Ahmad in different police stations, related to murder, extortion, cheating, forgery, land grabbing and crimes of similar nature.Following its investigation under the PMLA, the ED stated that Ahmad earned black money in cash through criminal activities and that it was deposited in several bank accounts of the gangster, his kin, and close associates.
The ED has noticed that these funds are being credited to their accounts from various firms and companies of his aides, the ED previously stated, adding that “these funds have been further utilised for buying land in the name of his wife at a consideration price far below the government’s value.”
According to the ED, it gathered information from the IT department and other agencies related to the companies run by Ahmad’s aides.

Only 2.98% of MPs and MLAs have been charged with money laundering, according to ED statistics; the conviction rate is 96%

March 16, 2023, 1:59 pm

The ED was delegated with enforcing the rigorous provisions of the PMLA, enacted in 2002, from July 1, 2005. The agency is authorized by law to summon, detain, seize the accused’s property during the investigation stage, and bring the offenders before a court of law.

The conviction rate under the anti-money laundering law is at a high of 96%, the Enforcement Directorate (ED) reported that only 2.98 percent of its overall ECIRs or complaints had been made against current or former MPs and MLAs.

According to data the ED filed a total of 176 Enforcement Case Information Reports (ECIRs) which is equal to a police FIR, against existing and ex MPs, MLAs and MLCs which comes to 2.98 percentage of the total 5,906 such complaints filed since the law came into being.

The agency issued 1,919 provisional attachment orders under the anti-money laundering statute, which resulted in the attachment of assets worth a total of Rs 1,15,350 crore.

Under the anti-money laundering statute, the agency has been looking into a number of high-profile individuals, including current chief ministers, prominent politicians, bureaucrats, business organisations, corporate entities, foreign nationals, and others.

The PMLA’s adjudicating authority confirmed 1,632 of these attachment orders, holding assets worth a total of Rs 71,290 crore, while 260 other attachment orders, holding assets worth a total of Rs 40,904 crore, were still awaiting confirmation.

ED arrests Former SDO Jairam Deshpande

March 14, 2023, 4:29 pm

The Enforcement Directorate (ED) on Tuesday arrested former sub-divisional officer (SDO) Jairam Deshpande from Mumbai in connection to the alleged Dapoli resort case.

Earlier on Saturday, a Prevention of Money Laundering Act (PMLA) Court in Mumbai sent Sadanand Kadam, a close aide of Shiv Sena (Uddhav Balasaheb Thackeray) leader and former Maharashtra minister Anil Parab, to Enforcement Directorate (ED) custody till 15 March in connection with the alleged Dapoli Sai Resort scam.

ED had sought 14 days of custody of Kadam, who was produced before the court on Saturday. ED told the court it issued three summonses to Kadam since he did not appear before the agency. ED said it took Kadam to its office and started recording his statement. The agency told the court that he was giving evasive replies.

The agency said in 2017 Anil Parab wanted to buy land, so he contacted Sadanand Kadam. Kadam allegedly helped Parab buy the land, and the deal was finalized at Rs 1.80 crore. Parab transferred Rs 1 crore through banking and Rs 80 lakh in unaccounted cash through Vibhas Sathe.

Satyendar Jain takes Massage in Tihar, BJP slammed AAP

November 19, 2022, 1:31 pm

The latest cause of contention between the BJP and the ruling Aam Aadmi Party in the country’s capital is a supposedly leaked video purporting to show Delhi minister Satyendar Jain receiving massages inside the Tihar jail.

The video was released days after jail superintendent Ajit Kumar was demoted for allegedly breaking the law to grant the AAP leader special treatment. Jain is seen getting foot, back, and head massages on various days in the six-minute video clip that news agency ANI released. Four persons can be seen inside Jain’s cell in one of the videos, which is allegedly dated September 21 and shows the Delhi minister receiving a foot massage.

#WATCH | CCTV video emerges of jailed Delhi minister and AAP leader Satyendar Jain getting a massage inside Tihar jail. pic.twitter.com/MnmigOppnd
— ANI (@ANI) November 19, 2022

The Delhi Government’s Department of Delhi Prisons oversees the operation of Tihar Jail.

Shehzad Poonawalla, the national spokesperson for the BJP, claimed that the video was evidence of “rules violations in a jail controlled by the AAP government.”

“Satyendra Jain was getting full VVIP Mazaa ? Massage inside Tihar Jail? Hawalabaaz who hasn’t got bail for 5 months get head massage !Violation of rules in a jail run by AAP Govt, (sic)” Poonawalla tweeted. “This is how official position abused for Vasooli & massage thanks to Kejriwal.”

Delhi deputy chief minister Manish Sisodia said that the massage was part of physiotherapy recommended by doctors, alleging that BJP was “mocking illness” of a patient. Sisodia said that the video was leaked despite court’s otherwise instructions to ED.

“”Satyendar Jain has undergone two spine-injury operations. He has been prescribed regular physiotherapy by the doctor. Since Covid, there is a patch in his lungs which has not been cured yet,” he tweeted.

AAP’s Akshay Marathe, whose Twitter bio says ‘spokesperson-on-sabbatical’, said that every jail inmate “deserves privacy and dignity” and releasing videos to “score political points is pathetic.”

“Disgusting how Satyendar Jain, a 58-year-old man who has NOT been convicted is being harassed by BJP. Leaves a very bitter taste. All politics aside, every jail inmate deserves privacy and dignity. Releasing videos from inside a jail to score political points is pathetic,” Marathe tweeted.

The Enforcement Directorate(ED) arrested Jain in May this year under the prevention of money laundering act (PMLA). The central agency’s probe against Jain is based on a 2017 case of the Central Bureau of Investigation (CBI), in which it was alleged that the AAP leader and his wife Poonam Jain had amassed disproportionate assets worth ₹1.47 crore between February 2015 and May 2017, which was 217.20 percent more than their known sources of income.

According to the AAP, Jain’s detention was the result of a political vendetta.

Delhi court rejects bail of Satyendar Jain in money laundering case

November 17, 2022, 4:23 pm

Minister Satyendar Jain was denied bail by a Delhi court on Thursday in connection with the money laundering case being investigated by the Enforcement Directorate. Vaibhav and Ankush Jain, who were co-accused in the case, were also denied bail by special judge Vikas Dhull.

Dhull had postponed passing the order on Wednesday, stating that although Jain’s order was ready, the orders for the other two defendants had not yet been completed.

Jain is currently being held in the Tihar Jail after being taken into custody on May 30 in accordance with the Prevention of Money Laundering Act (PMLA) provisions.

The ED filed a request in September to have the case moved from the court of special judge Geetanjali Goel to a new judge, alleging bias, as the bail hearing for all the accused was nearing its conclusion.

The agency had said the minister had faked his illness by getting a report from the Delhi government-run Lok Nayak Jai Prakash Hospital, and despite knowing that there is something fishy, the trial court judge did not go to check the veracity of the medical certificate.

On September 23, the principal and sessions judge Vinay Kumar Gupta allowed ED’s application that had stated “a grave likelihood and a reason to believe that the issues (in the case) have been premeditated”.

On October 1, the Delhi High Court rejected the plea, stating that the ED’s suspicion of bias by a trial court judge is reasonable and not based on flimsy ground, despite the fact that Jain and the other accused challenged the transfer of the case to a new judge hours within it was pronounced.

The court had said the apprehension of bias by the trial court judge was not raised at a belated stage, “as the requests for an independent evaluation were consistently made”. It further said the apprehension has to be seen from the point of view of the party and not from the judge’s angle.

Jain appealed the high court’s decision to the Supreme Court, but he later withdrew the case and started the bail hearing at the trial court in front of Special Judge Vikas Dhull.

Jain requested bail and claimed that since the agency had already submitted the prosecution charge in the matter, there was no need in holding him in detention any longer.

However, the ED had argued that the accused was receiving special treatment in custody because he was abusing his position as a minister.

After hearing from the accused, including Vaibhav Jain and Ankush Jain, as well as the ED, the judge had put the order on hold.

Based on a 2017 CBI FIR filed against the minister in the Aam Aadmi Party (AAP) administration, the case was brought. The ED has charged him with using four allegedly connected companies, where he held shares while accumulating disproportionate wealth, to launder money.

According to ED, Jain transferred money to Kolkata through the hawala channel and got it back from dummy companies in the form of accommodation entries, even though he could not show the source of the money received.

Health Minister in custody, ED files charge sheet against Satyendar Jain and others

July 28, 2022, 11:25 am

Central agency Enforcement Directorate has filed a charge sheet in a special court against Delhi Health Minister Satyendar Jain and others in the PMLA case on Wednesday.

Satyendar Jain and the other two officers are currently in judicial custody in this case, in fact, earlier, the ED had provisionally attached immovable properties worth Rs 4.81 crore owned by Jain on March 31, 2022. At the same time, Jain was arrested by the ED on May 30 under Section 19 of the PMLA.

The ED had filed an application in the court regarding this matter, but the court rejected it. Where the ED has challenged the July 6 order of the lower court. At the same time, the agency says that during that time Satyendar Jain was posted as Health Minister in the Delhi government.

Meanwhile, the ED said that he had raised this matter during the hearing on Jain’s interim bail, but the court, while rejecting his request, has fixed July 29 for the hearing, seeking a reply from LNJP Hospital.

Earlier on December 3, 2018, CBI filed a charge sheet against Satyendar Kumar Jain, Poonam Jain, Ajit Prasad Jain, Sunil Kumar Jain, Vaibhav Jain, and Ankush Jain.

However, Satendra Jain is currently in judicial custody.

Supreme Court upholds ED’s power of search, and arrest under PMLA

July 27, 2022, 4:11 pm

The Supreme Court gave a big verdict on the Prevention of Money Laundering Act (PMLA) on Wednesday and said all the actions of the Enforcement Directorate (ED) under PMLA including arrest, raid, and summons are justified.

Various provisions of the Prevention of Money Laundering Act (PMLA) were challenged and the Supreme Court has dismissed all the petitions upholding the validity of various provisions of the PMLA.

The decision of the Supreme Court is a big setback for the people trapped in the cases registered by the ED. The apex court has said that the amendments made in the law four years ago in 2018 are correct. The court said that the Enforcement Case Information Report (ECIR) cannot be clubbed with the FIR and the ECIR is an internal document of the ED. The court also said that a copy of ECIR is not required to be given to the accused. It is enough to disclose the reasons for the arrest.

Moreover, more than 100 petitions were filed in the Supreme Court challenging the constitutionality of several provisions of PMLA. These included challenges to the power of the ED, summons to witnesses and the manner of confiscation of property, the right to arrest, and the bail process. The petitions were filed by NCP leader Anil Deshmukh, Congress leaders Karti Chidambaram, Mehbooba Mufti, and others.

Meanwhile, the petitioners had said that many provisions of PMLA are unconstitutional. The petitioners have said that the right of bail, arrest, and confiscation of property under this Act is outside the purview of CrPC. The petitions also said that the investigating agency should be bound to follow the CrPC during the investigation. Several lawyers, including senior advocates Kapil Sibal and Abhishek Manu Singhvi, had presented their side in the matter.

However, in response to a question in the Lok Sabha on behalf of the Central Government, it was told that PMLA came into force 17 years ago and since then 5,422 cases have been registered under it. But only 23 people have been convicted so far. The ED has attached assets worth more than one lakh crore till March 31 and has filed a charge sheet in 992 cases.