Delhi HC seeks ED's stand on Raghav Bahl's plea against money laundering case

The Delhi High Court Friday sought response from the Enforcement Directorate on media baron Raghav Bahl's petition to quash a money laundering case against him and refused to pass any order of interim protection at this stage.

Justice Anu Malhotra granted three weeks to the ED to file its response to the petition which also seeks challenges the notices issued to the petitioner by the investigating officer.

“Would your lordship consider granting the same order of no coercive step as granted by Supreme Court (in the case concerning the substantive offence)?” Senior advocate Mukul Rohatgi, appearing for the petitioner asked.

“I don't consider it, sir,” the judge responded as the case was listed for further hearing on January 27.

The ED case against the petitioner arises from a complaint by the Income Tax (I-T) Department and concerns the alleged laundering of funds to purchase an undisclosed asset in London.

The I-T Department had initiated proceedings against the petitioner under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act of 2015 for alleged irregularities in the returns filed for the assessment year (AY) 2018-2019.

Rohatgi stated that after re-filing, the income tax return for AY 2018-19 has now been cleared by the assessing authorities and therefore, the money laundering proceedings cannot be allowed to go on.

“Based on black money complaint, ED proceedings commenced. Now there is no violation, there are no proceeds of crime. IT (authority) has accepted the income tax return for 2018-2019 in 2021,” he said.

The senior lawyer added that while the challenge to the black money proceedings was pending before the Supreme Court, which has earlier given him protection from coercive action in that case, the ED has been issuing notices to him in connection with the money laundering case.

The petition claimed that since Bhal has “done no wrong”, the continuation of the process of inquiry under the Prevention of Money Laundering Act of 2002 “without having any subsisting basis in fact or law” has a “deleterious effect” on his life, business, and reputation.

“The Respondent has ignored this, and has issued further Summons on 16.11.2021, now against all the family members i.e. the Petitioner herein, plus the Son, Daughter & Wife of the Petitioner, to begin appearing within the next 24 hrs,” it stated.

Advocate Amit Mahajan, appearing for the ED, clarified that the issue of money laundering proceedings is not before the apex court and argued that the investigation by the agency cannot be stalled on the presumption that the Supreme Court would rule in favour of the petitioner.

He said he would file a reply on behalf of the ED and that the petitioner was only being called for an inquiry.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)