The Delhi High Court has reserved the order in the plea which was filed by the former Aam Aadmi Party councillor Tahir Hussain challenging money laundering case registered against him in connection with the North East Delhi riots of 2020.
The order was reserved after Justice Anu Malhotra heard the counsel of Enforcement Directorate and counsel of Tahir Hussain.
Earlier, this month, charges were framed against Tahir Hussain in the Karkardooma Court under Section 3, and under Section 4 of the Prevention of Money Laundering Act, 2002.
The court has instructed both the parties to file their written submissions in less than 3 pages along with judgments to be relied upon within a period of two days.
Tahir Hussain’s counsel told the Court that while earning money out of scheduled offences is a core requirement under PMLA, but no such allegation could be said true in case of Tahir Hussain.
The counsel added that there has been no property or proceeds of crime which was seized from Tahir Hussain to justify the charges framed against him for money laundering.
The Enforcement Directorate counsel argued that the bank accounts allegedly used by Tahir Hussain will be property within the meaning of Section 8(5) of the PMLA, also liable to be confiscated.
The ED counsel also submitted that there was an alleged conspiracy to fund the riots and fake bills were made in order to fool the public, these bills were later cashed and given to various people to commit the offences.
The agency said that it has enough material to show that property and proceeds of crime were used in furtherance of a larger conspiracy to fund the riots.
As per the agency, Hussain along with his group of associates hatched a conspiracy to fraudulently withdraw money from the accounts of certain companies — M/s. Show Effect Advertisement Pvt. Ltd. (SEAPL), M/s. Essence Cellcom Pvt. Ltd. (ECPL) and M/s. Essence Global Services Pvt. Ltd. (EGSPL) owned and controlled by him “through bogus and malafide transactions with bogus entry operator on the strength of fake bills.”
As per the agency, it is Hussain who is the ultimate beneficiary of laundered money which he used during the riots in North- East Delhi in February 2020.
The PMLA case was registered on the basis of the three FIRs lodged in relation to the riots – FIR No. 59/2020, FIR No. 65/2020 and FIR No. 88/2020.
While framing charges, the trial court observed that ED’s complaint made out a case of Hussain working in conspiracy with Amit Gupta and the proceeds generated were used for riots.