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Synopsis

The Delhi High Court on Wednesday 'reserved order' in 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 reserved the order after hearing submissions of both sides.

Senior Advocate Mohit Mathur appeared for Singh and Additional Solicitor General (ASG) SV Raju appeared for ED. 

The Enforcement Directorate (ED) asserted before the Court on Tuesday that Singh played a role in establishing a Special Purpose Vehicle (SPV) to launder "proceeds of crime" associated with an alleged liquor scam, resulting from changes in the excise policy.

Sanjay Singh had approached the high court seeking bail on January 4, following the dismissal of his plea by Special Judge M.K. Nagpal of Rouse Avenue Court on December 22.

The ED's affidavit alleges Singh's active involvement in acquiring, concealing, and utilizing the proceeds of crime. The financial probe agency contends that Singh collaborated with individuals like Dinesh Arora and Amit Arora.

According to the agency, Singh played a crucial role in forming a special purpose vehicle, named M/s Aralias Hospitality Pvt Ltd, to launder the proceeds of crime generated through business activities influenced by the policy changes. The ED further claimed that Singh received illegal money or kickbacks from the alleged excise policy (2021–22) scam and was part of a broader conspiracy.

The investigation reportedly revealed that Singh received Rs. 2 crore as proceeds of crime.

The senior advocate representing Singh had argued that his client had been in custody for three months without a clear attribution of a role in the predicate offence. Mathur highlighted that Singh's arrest relied on the statement of the ED's "star witness."

The Enforcement Directorate arrested Sanjay Singh on October 4 last year 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