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Synopsis

Conman Sukesh Chandrashekhar has moved the Delhi High Court challenging the framing of charges against him by the trial court in a money laundering case registered by the Directorate of Enforcement (ED). He has sought quashing of the framing of charges by the trial court.

During the hearing today, Advocate Anant Singh Malik appearing for Sukesh submitted that certain facts did not exist before the trial court at the time of the framing of charges. “Why I say so is because the proceedings in the scheduled offence were stayed by the orders of the Supreme Court and subsequently for the other petitioners by the High Court, My Lord!”, he contended.

Malik, on behalf of Sukesh, contended that the entire order of charge had been framed on the “assumption” that a scheduled offence had been committed, whereas the “scheduled offence” had been eclipsed because of the stay order of the Apex Court operating. Referring to the order of the Supreme Court staying the proceedings in the Scheduled offence, he submitted that even Sukesh has been granted a stay in the case and the same is still operating. 

“Once the scheduled offence itself is stayed, the proceeds of crime become a question mark. They are not operating, there are no live proceedings as of date”, Malik contended. He also placed reliance on certain judgments.

On the contrary, Advocate Zoheb Hossain appearing for ED opposed the plea and contended that if this is accepted it will have wide ramifications. “Therefore the legislature has also clarified it”, he argued.

He referred to two Apex Court judgments, where in a scheduled offence protection granted was not extended to PMLA proceedings and it was stated that the stay in the predicate offence will make no difference to the PMLA proceedings.

Taking note of the submissions, Justice Dinesh Kumar Sharma directed both parties to file their brief written submissions not exceeding three pages. Accordingly, the court listed the matter for further consideration on April 5.

It is to be noted that on February 16, Sukesh was arrested in a fresh ED case in connection with the alleged fraud committed against his wife, Japan Singh of former Religare promoter and Malvinder Singh. A Delhi Court sent him to nine-day ED custody, in the case. Subsequently, on February 24 it was extended by 3 days.

Case Title: Sukesh Chandrashekhar v. Directorate of Enforcement 

Statue: The Prevention of Money Laundering Act