sc-to-hear-ed-on-kejriwal-s-rushed-bail-order

The Enforcement Directorate (ED) has informed the Supreme Court that the trial court judge showed haste and did not give sufficient opportunity to the prosecutor to oppose Delhi Chief Minister Arvind Kejriwal's bail plea in a money laundering case linked to the alleged excise scam.

 

On Wednesday, the ED submitted its response affidavit to the Supreme Court, challenging the interim stay on Kejriwal's bail imposed by the Delhi High Court on June 21. The agency termed the trial court's June 20 bail order as "perverse" due to its failure to adhere to mandatory conditions under Section 45 of the Prevention of Money Laundering Act (PMLA).

 

The vacation bench comprising Justice Manoj Misra and Justice SVN Bhatti accepted the ED's affidavit and granted Kejriwal the liberty to withdraw his current plea. Senior advocate Abhishek Singhvi, representing Kejriwal, indicated that a more substantial appeal against the High Court's final order on June 25, which stayed the bail, would be filed.

 

According to the ED, Section 45 of the PMLA mandates that the public prosecutor must be given an opportunity to oppose bail. Moreover, if opposed, the court must satisfy itself that there are reasonable grounds to believe the accused is not guilty and will not commit further offences while on bail.

 

The agency argued that the trial judge did not afford the Additional Solicitor General adequate time to present their case, and crucial records were not examined.

 

Highlighting the seriousness of money laundering offences, the ED emphasised that the requirements under the PMLA override those of the Code of Criminal Procedure (CrPC) in bail matters. It stressed that a bail decision should only be made after a thorough review of case records, investigation papers, and related complaints.

 

The ED's affidavit further criticised the trial court for passing the bail order hastily, as evidenced by the judge's reluctance to review case records despite requests from the prosecuting agency. The agency underscored that the procedural lapses in the bail order render it non-compliant with Section 45 of the PMLA and thereby "perverse" in nature.

 

Earlier on Wednesday, a Delhi court allowed the Central Bureau of Investigation (CBI) to formally arrest Kejriwal in connection with the alleged excise scam. This followed the Delhi High Court's decision on Tuesday to stay the trial court's bail order, citing inadequate consideration of evidence by the lower court.

 

The Aam Aadmi Party (AAP) leader was initially arrested by the ED on March 21 and granted bail by the trial court on June 20. The trial court had then pointed out the lack of direct evidence linking Kejriwal to the alleged proceeds of crime in the money laundering case.

 

The excise policy under scrutiny was annulled in 2022 after the Delhi lieutenant governor ordered a CBI investigation into suspected irregularities and corruption in its formulation and implementation.

 

Both the ED and the CBI allege that modifications to the policy favoured licence holders unfairly, leading to financial misconduct.