Delhi’s Patiala House Court on Saturday dismissed Supertech chairman R K Arora’s bail plea.
He was sent to 14 days judicial custody on July 10, 2023. He was recently arrested by the Enforcement Directorate in a money laundering case.Special judge Shailender Malik dismissed the bail plea after hearing submissions on behalf of accused and prosecuting agency.He had moved an application seeking bail after expiry of ED’s interrogation.
He sought bail on the grounds that the action of Enforcement Directorate is beyond jurisdiction, contrary to law, illegal and void abinitio. In the absence of final report in “scheduled offence” there is no “proceed of crime” in the instant case, hence there cannot be money laundering in the absence of which the arrest of applicant is illegal and arbitrary.
It was argued that the alleged diversion relating to the purchase of land parcels by the Company M/S Supertech Limited is within the object and purpose of the company. The ‘diversion’ and/or ‘siphoning’ are well defined.
It was argued that the applicant has appeared earlier 12 times since 2021, investigation is complete and arresting officer could not have arrested on pretended investigations which is actually re-investigations, prohibited by law rendering the arrest and detention illegal and arbitrary.
The material on record clearly shows that the applicant is not guilty of offences alleged; there is no material to arrive at the guilt of violations of section 3 of PMLA and there is remote chance of ultimately the Applicant being convicted, the plea contended.
It was submitted that the respondent ED in its reply acknowledged that applicant is not given copy of the grounds of arrest which render the arrest and detention of applicant illegal and void abinitio.On July 10, Arora was produced before concerned Additional Sessions Judge Devender Kumar Jangala after the end of his ED remand.
Earlier, ED had apprised the court that 26 FIRs were registered by EOW, Delhi Police; Haryana Police and UP Police against Supertech Limited and its group companies under Section 120B (criminal conspiracy) read with 406(criminal breach of trust)/420 (cheating)/467/471 IPC having allegations of cheating atleast 670 home buyers for an amount of Rs.164 Crores.
ED alleged that the amount collected by Supertech Ltd. was diverted to their group companies for purchase of properties and the company with land having much lesser value.
The agency also alleged that the accused persons have acquired properties, made illegal/wrongful gain arising out the said proceeds of crime by involving, indulging and commissioning of criminal activities related to scheduled offences.
It was stated that the prima facie case for commission of offence punishable under Section 3 punishable under Section 4 of the PML Act has been made out.
Arora’s defence lawyer RK Handoo had opposed the plea and submitted that his client has been illegally arrested and no grounds of arrest have been furnished.
He had also apprised the court that present ECIR was registered in the year 2021 and the applicant has been repeatedly examined by the investigating agency and after completion of investigation provisional attachment order dated 11.04.2023 has been issued. That once the investigation has already been completed, therefore was no requirement of arrest, the defence lawyer said.
He further had submitted that the offences of Enforcement Directorate are not the police officers, under law, therefore, the enforcement directorate is not entitled for custody remand of the applicant/accused.