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Synopsis

The Delhi High Court on Monday sought the Directorate of Enforcement's response on AAP MP Sanjay Singh's bail plea in connection with a money laundering case related to the alleged Delhi excise policy scam.

The bench of Justice Swarana Kanta Sharma issued notice to the ED and scheduled the matter for further hearing on January 29, 2023.

Singh is currently in judicial custody till January 10, 2024.

Trial Court Proceeding

Special Judge M. K. Nagpal of Rouse Avenue Court "dismissed" Singh's bail plea on December 22, 2023. 

"The Court is of prima facie view that the case against him is genuine. Evidence shows his involvement in the alleged offence of money laundering. There are reasonable grounds for believing that he is guilty of the alleged offence of money laundering," the special judge said.

The trial court judge expressed his prima facie view and said, "The evidence and material show involvement of the applicant in the commission of the alleged offence of money laundering because he is shown to have been, directly or indirectly, involved in the process or activities connected with proceeds of crime generated through the scheduled offences case of CBI."

The court further said, "The evidence and material is also sufficient to furnish this court reasonable grounds for believing that he is 'guilty' of the said offence in terms of provisions contained Under Section 45 of the PMLA. It can be said that the conditions laid down by Section 45 for the grant of bail are not satisfied."

While dismissing the bail application, the court also said that it had been approved by the Supreme Court that bribes in connection with the formulation of the Delhi excise policy were paid.

"It can also be observed by this court that the basic case of ED in the present ECIR stands approved up to the Supreme Court and it has been endorsed by the Apex Court that the bribe or kickbacks in connection with formulation of excise policy of the GNCTD for the year 2020- 21 was/were paid and it was so approved by rejection of bail application of accused Manish Sisodia on merits by their Lordships of the said court," the trial court said.

On December 12, the court reserved the orders on the bail application filed by the AAP leader. The Special Judge reserved the order after hearing arguments from Singh's counsel, Senior Advocate Mohit Mathur, as well as the Enforcement Directorate (ED).

Mathur argued that Singh, a Rajya Sabha MP, was not called for questioning by the ED until October 4, 2023, the day he was arrested. The counsel highlighted contradictions in the statements of Dinesh Arora, an accused-turned-approver, and other witnesses.

Mathur emphasized that Arora's statement was hearsay and questioned its credibility, describing Arora as a "tainted" witness and a "guilty accomplice." Singh's counsel asserted that the request was for bail, not discharge, emphasizing the importance of personal liberty under the Constitution.

The ED opposed Singh's bail application, contending that the investigation was ongoing and that Singh's release could potentially obstruct the probe, tamper with evidence, and influence witnesses.

The court directed the ED to submit any written submissions within two days and asked Singh's counsel to file a rejoinder within a day thereafter.

The Enforcement Directorate arrested Sanjay Singh on October 4, alleging that he played a pivotal role in formulating and implementing the now-scrapped excise policy.

The ED claimed that this policy favoured specific liquor manufacturers, wholesalers, and retailers for financial gain. Sanjay Singh has consistently denied these allegations, asserting his innocence in the matter.

Case Title: Sanjay Singh v. Directorate of Enforcement