[Terror Funding Case] Delhi HC Directs Trial Court to Expedite Engineer Rashid’s Bail Application

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Synopsis

Rashid's involvement emerged during the investigation of Kashmiri businessman Zahoor Watali, who faced allegations of financing terrorist organizations and separatist activities in Kashmir. Following this, the ED filed a money laundering case based on the NIA's FIR, accusing Rashid and others of conspiring to wage war against the government and inciting unrest in Kashmir.

The Delhi High Court, on Monday, directed the Trial Court to expedite the bail application of Baramulla MP Abdul Rashid Sheikh alias Engineer Rashid, an accused in the Kashmir Terror Funding case. The bench of Justice Vikas Mahajan presided over the matter. 

Rashid had filed a petition seeking clarification on the designation of the trial court in a case registered by the National Investigation Agency (NIA) under the Unlawful Activities (Prevention) Act (UAPA).  

During the hearing, the Registrar General of the Delhi High Court informed the Court that the Supreme Court had granted the High Court’s application for clarification regarding Rashid’s trial. He further stated that the Supreme Court had allowed the entire prayer. 

Following this clarification, the high court passed an administrative order, directing that the trial in the case be conducted by the Additional Sessions Judge of Patiala House Court.  

Senior Advocate Hariharan, representing Rashid, submitted that the trial commenced even before Rashid’s election. He informed the court that the prosecution had examined 21 witnesses. He also informed the court that the trial court has scheduled further hearings. Special Public Prosecutor Akshai Mallik, representing the NIA, confirmed that six dates were fixed for the trial.  

The court inquired about the status of the trial, to which Senior Advocate Hariharan responded that the order had been reserved since September 2024 but not passed due to a lack of jurisdiction. However, with the recent clarification, the necessary authority has been granted. 

The court noted that the trial should proceed expeditiously. The Supreme Court’s order, along with the Delhi High Court’s administrative directive dated February 17, was taken on record. In light of these developments, Rashid withdrew his petition.  

The court subsequently directed the trial court to dispose of Rashid’s bail application at the earliest opportunity. Declaring the matter closed, the Court dismissed the petition as withdrawn.  

Background

Engineer Rashid had won the Baramulla parliamentary seat in the 2024 Lok Sabha elections. However, he had been in judicial custody at Tihar Jail since 2019 after his arrest by the NIA under the UAPA Act in relation to a 2017 terror-funding case.

In September 2024, Engineer Rashid was granted interim bail by the Rouse Avenue Court to campaign in the elections. The Delhi High Court recently allowed Rashid to join the Parliament budget session, by granting his custody parole for two days.  

For Petitioner: Senior Advocate ​​N. Hariharan with Advocates Aditya Wadhwa, Vikhyat Oberoi, Nishita Gupta, Shivam Prakash, Ravi Sharma, Jagriti Pandey, Punya Rekha Angara, Vasundhara N., Sana Singh, Aman Akhtar, Vinayak Gautam and Hasnain Khwaja
For Respondent: Senior Advocate Sidharth Luthra, Special Public Prosecutor Akshai Malik with Advocates Ayush Aggarwal, K. Saleem, K.P. Rustom Khan and Yatharth Sharma
Case Title: Abdul Rashid Sheikh v NIA