Delhi Court takes cognizance on ED’s chargesheet; issues summons to PFI & 3 former office bearers in money laundering case

A Delhi Court on Monday took cognizance of chargesheet filed by the Directorate of Enforcement against the banned organization Popular Front of India (PFI) and its three office bearers in Delhi.

During the hearing, Special Public Prosecutor (SPP) NK Matta appearing for ED submitted that the agency is taking into account a cash credit of Rs. 32 crores. He stated that there was no explanation of this amount by the three accused members of PFI.

SPP also submitted that there were bogus donations made by the PFI and the three accused members namely, Perwez Ahmed (President PFI Delhi), Mohammad Ilias (General Secretary, PFI Delhi), and Abdul Muqeet (Office Secretary, PFI Delhi) in five banks accounts of Delhi. He also stated that Rs. 64 crores had come from abroad, through hawala channels and out of which they deposited Rs. 32 crore cash.

Additional Sessions Judge (ASJ) Shailendra Malik of the Patiala House Court noted that the banned organization PFI through its chairman and the accused members had committed a scheduled offence, as unaccounted/tainted money was being used to make tainted money.

ASJ also noted that the funds were used for purpose of unlawful activities, inciting violence which allegedly led to the north-east Delhi riots in February 2020. He further noted that most of the donations were bogus donations made in cash, and were part of a larger conspiracy and that on examination of the accused persons there had been contradictions in bogus entries of Rs.32 crores deposited by the sympathizers/members of PFI.

The court also noted that the investigation had revealed that PFI has many active members abroad, more importantly, in "Gulf Countries", and that more than Rs. 60 crores had been deposited in these accounts since 2003, most of the amount was deposited in cash in different accounts of PFI.

Furthermore, the court noted that there were illegitimate donations made in the five accounts in Delhi and that it was alleged that the funds were transferred through underground channels/hawala and funds were concealed, received from abroad and parts of India for the use of unlawful activities.

Additionally, ASJ Malik noted that there is a clear omission of an offence under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA).

Accordingly, the court issued summons to the Chairman of PFI, OMA Abdul Salam, and directed the three accused Perwez Ahmed, Mohammad Ilias, and Abdul Muqeet who are already in Judicial Custody to appear in person on the next date of hearing i.e. December 16, 2022.

The ED on Saturday filed a charge sheet against banned outfit PFI and its three members in a money laundering case pertaining to alleged terrorism-related activities. Perwez, Ilias, and Abdul were arrested on September 22.

Case Title: Directorate of Enforcement v. PFI & Ors.