Delhi excise policy case: HC seeks ED response to MP Sanjay Singh’s bail plea

The Delhi high court on Monday sought the Enforcement Directorate’s (ED) response to Aam Aadmi Party (AAP) member of Parliament (MP) Sanjay Singh’s bail plea in the money laundering case registered in connection with the now-scrapped 2021-22 Delhi excise policy.

A bench of Justice Swarana Kanta Sharma issued the notice while posting the matter for hearing next on January 29.

Singh, 51, who was arrested on October 4 under the Prevention of Money Laundering Act (PMLA) for allegedly receiving ₹2 crore, moved the high court against a special court’s December 22 order denying him bail, saying there were reasonable grounds to believe that he was connected with the “proceeds of crime”.

The special court ruled there were no “irregularities” or “illegalities” in Singh’s arrest and remand. It added it was not necessary for him to either be named in the First Information Report (FIR) or be charged in the main excise policy case to be made as an accused.

In his plea filed through advocate Rajat Bharadwaj, Singh argued the allegation that ₹2 crore was paid to his close associate was not in the Central Bureau of Investigation’s chargesheet. Singh insisted the alleged payment cannot be regarded as proceeds of crime under the PMLA.

“Proceeds of crime is [a] sine qua non for [the] commission of offense of money laundering,” the plea said. It added ED has failed to produce any evidence/incriminating information to determine Singh’s involvement in any activity of placement, layering and/or integration of any proceeds of crime. The plea said as such, there is no question of any violation of the provisions of the PMLA.

Advocate Mohit Mathur, who appeared in the high court for Singh on Monday, submitted his client was arrested based on the 10th statement of the ED “star witness” Dinesh Arora. He added Arora has been changing his statements as per the agency’s wishes and fancies.

“The only evidence against the Applicant [Singh] is the belated and procured statement of Dinesh Arora,” said the plea. It argued the ED has failed to show any material collected during the investigation that supports its case. “There is no basis as to how the allegations apply against the Applicant.”

The high court in October upheld Singh’s ED arrest and remand saying that it was not appropriate for it to interfere at the stage when the investigation was at a nascent stage. Singh moved the Supreme Court against the order.

The Supreme Court sought the government and ED’s response in November while ordering the special court to consider Singh’s plea for regular bail independent of the observations made in the high court’s judgement in the case filed in the interregnum.