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Synopsis

The Delhi High Court on Monday "rejected" the bail plea of Abhishek Boinpally, a Hyderabad-based businessman and accused in the case registered by the Enforcement Directorate (ED) in connection with the Delhi Excise Policy case.

The bench of Justice Dinesh Kumar Sharma held, "The learned trial court has examined the case on merits and has reached to a finding which is duly supported by this court. I do not find any illegality in the order of the trial court.....the accused person in the present case acting in furtherance of a conspiracy, circumvented the policy and got framed the policy in such a way that to continuously generate and channel illegal fund."

"The allegations are that deliberate loopholes were left to facilitate illegal and criminal activity. It is also pertinent to note that the investigation has revealed that 65% of stakes were given to the South Group in Indospirits to make it a mechanism of continuous generation and channelization of proceeds of crime", the court said.

"....Taking into account the seriousness and gravity of the allegation and credible material on record, the bail application along with pending applications stands dismissed", the court ordered.

Notably, on June 1, the single-judge bench had 'reserved order' in the bail plea.

Opposing the bail plea, Special Public Prosecutor Zoheb Hossain had told the court that, “Boinpally is one of the key persons from the South Group in giving bribes of Rs.200 crore through Vijay Nair. He has been 'neck deep' in the conspiracy”. Hossain, on behalf of the Directorate of Enforcement (ED), dealing with the allegation of 'Illegal arrest', had stated that there was absolutely no violation, nor the Special Judge had pointed out any violation. He contended, “Today, this argument is taken only to circumvent the twin conditions of the PMLA. The only two reasonable grounds for bail are; a. Reasonable grounds he's not guilty, b. If released on bail, he'll not indulge in the same activity”.

The SPP had contended that all the arguments on the illegality of arrest needed to be rejected at the onset, and this could not be an argument for bail. All requirements of S. 19 and D.K Basu Case have been compiled. Referring to the arrest memo, he stated that it also has the signature of the arrestee. “When Abhishek Boinpally was given the list of grounds of arrest, he has gone through each page and signed on each one of them. So there has been no prejudice caused”, Hossain had added.

On the contrary, Senior Advocate Vikram Chaudari for Boinpally had argued, “I have been in custody for 6-7 months, the trial is going to take years. There are chargesheet after chargesheet being filed in these cases both by CBI and ED. Simply because it is a sensational matter, I cannot be kept behind bars. I am a man with deep roots, I have an ailing mother, a minor child, and a wife. I have always appeared for investigation whenever called”.

The senior counsel had also contended that “There is no material, no proof. All based on assumptions. I have no criminal antecedents. I am not a flight risk”. He stated that while in the custody of the Central Bureau of Investigation (CBI), on the day Boinpally was granted bail, the Directorate of Enforcement (ED) arrested him.

Boinpally was a Director of Anoos Electrolysis & Obesity Pvt. Ltd, Anoos Health & Wellness Pvt. Ltd., Robin Distribution LLP, Agasti Ventures, SS Mines & Minerals, Master Sand LLP, Neoverse Realty Pvt. Ltd., Zeus Networking Pvt. Ltd and Valuecare Esthetic Pvt. Ltd.

On March 14, Boinpally moved the High Court challenging the trial court’s order denying him bail in a case registered by the Directorate of Enforcement (ED).

It is to be noted that on February 16, the Special Judge MK Nagpal of the Rouse Avenue Court, Delhi denied bail to Abhishek Boinpally, Vijay Nair, Sameer Mahendru, Sarath P Reddy, and Binoy Babu. All of them were arrested by ED in the money laundering case related to the Delhi liquor scam.

Case Title: Abhishek Boinpally v. Directorate of Enforcement

Statue: The Code of Criminal Procedure; The Prevention of Money Laundering Act