New Delhi: In a recent development, the Patiala House Court in Delhi rejected the bail plea of Supertech Chairman R K Arora. The decision was made after he had been sent to 14 days of judicial custody on July 10, 2023, following his arrest by the Enforcement Directorate (ED) in connection with a money laundering case.
The dismissal of the bail plea was carried out by Special Judge Shailender Malik, who carefully considered the submissions made by both the accused and the prosecuting agency before reaching a verdict.
Arora had sought bail on the grounds that the actions of the Enforcement Directorate were beyond its jurisdiction and in violation of the law, rendering them illegal and void abinitio. He argued that since there was no “proceed of crime” in the instant case due to the absence of a final report in the “scheduled offense,” there could not be any money laundering. Therefore, he maintained that his arrest was unlawful and arbitrary.
The defense contended that the alleged diversion of funds for the purchase of land parcels by M/S Supertech Limited was within the company’s intended purpose and not an act of siphoning or diversion.
Furthermore, it was argued that Arora had appeared before authorities on twelve previous occasions since 2021, and with the investigation complete, the arresting officer had no right to make an arrest based on pretended investigations, which are prohibited by law. The defense claimed that there was no substantial evidence to establish the applicant’s guilt in the violations of Section 3 of the Prevention of Money Laundering Act (PMLA), and the chances of a conviction were remote.
Additionally, it was pointed out that the respondent ED had not provided Arora with a copy of the grounds for his arrest, further substantiating the claim that the arrest and detention were illegal and void abinitio.
The ED had previously apprised the court that 26 FIRs were registered against Supertech Limited and its group companies, alleging criminal conspiracy, breach of trust, cheating, and other offenses. The agency claimed that these companies had cheated around 670 home buyers for a sum of Rs. 164 crores, diverting the collected amount to other group companies for the purchase of properties of significantly lower value.
The agency further alleged that the accused had acquired properties and made illegal gains arising from the proceeds of crime through involvement in criminal activities related to scheduled offenses. The court found a prima facie case for offenses punishable under Section 3 and Section 4 of the PML Act.
Arora’s defense lawyer, RK Handoo, had opposed the bail plea, arguing that his client’s arrest was illegal and no grounds for arrest had been provided. Handoo also highlighted that the investigation had already been completed, making the arrest unnecessary.
Moreover, the defense lawyer asserted that the Enforcement Directorate did not have the authority to take custody of the applicant/accused since they were not police officers under the law.
In light of these arguments, the court decided to dismiss the bail plea, paving the way for further legal proceedings in the case.
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