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Synopsis

In Aam Aadmi Party MP Sanjay Singh's plea challenging his arrest and ED remand in a money laundering case related to the Delhi excise policy scam, Additional Solicitor General (ASG) SV Raju, on behalf of Directorate of Enforcement (ED) submitted, "This is a frivolous application. This needs to be rejected".

Opposing the plea, the ASG contended, "Essentially he has moved a bail application under the guise of Article 226. This petition is not maintainable. No fundamental rights have been infringed".

"He is capable of tampering with evidence. Sanjay Singh had images of Dinesh Arora's original statements, which are actually in the ED office. The 3 page document was seized during the raids and it was mentioned in the arrest memo. Money laundering is an independent offence, the process or activity can be in any form. It is clear it is not necessary that you should not be an accused in the main predicate offence", he argued. 

Taking note of the submissions, Justice Swarana Kanta Sharma 'reserved order' in the plea. 

Earlier, Senior Advocate Vikram Chaudhari had contended that the present case is a classic case of abuse of power. "Offence today is not about my conduct. In money laundering, there has to be proceeds of crime as per S. 19 PMLA...If you're (ED) yet to find the money trail, why have you arrested me? This is as arbitrary as it can be", he had argued.

The senior counsel had asserted, "Was the arrest required? According to them(ED), they already had substance and documents for laundering. It was unnecessary. Absolutely! If this is not overreach, what is?" 

The senior counsel had contended that the Money Laundering Act is aimed at confiscation, and attachment of properties so, that the proceeds of crime are taken care of. "The legislature abhors arrest. The material in position does not mean ipsi dixit of this officer but the material in possession of unimpeachable character and of sterling quality can lead to a reasonable hypothesis of reason to believe that the accused is guilty. Not merely its [ED's] whims and fancies", he had said.

"In this case, the grounds of arrest are a formality. It is anti-formality. It is a pretense. It is a camouflage for validating and totally invalidating action," Chaudhari had argued while concluding his submissions. 

Proceedings before Trial Court

Special Judge MK Nagpal of Rouse Avenue Court, on October 13, remanded the AAP leader to 14 days Judicial custody. He will be produced before the court on October 27. Notably, on October 10, the judge had extended the remand of Singh to Directorate of Enforcement (ED) custody further till October 13. 

On October 10, the trial court had directed Singh not to give an interview to the media while being produced and also asked the press not to ask him questions. The judge had said, "Talking to the media while appearing in court creates a security problem".

Background 

Singh was arrested on October 4 by the ED in the money laundering case. According to reports, Singh was taken into custody after day-long searches on his residence. This is the third high-profile arrest in the case. 

The AAP MP was arrested a day after, a Delhi Court allowed Raghav Magunta son of YSR Congress MP Magunta Srinivasulu Reddy and businessman Dinesh Arora, both accused in the case to "turn approvers".

In the Prosecution complaint filed by the ED, Sanjay Singh's name appeared in a statement by Arora. 

Arora and Magunta were arrested by the agency earlier this year and are out on bail. Besides the two, businessman and AAP's communication in-charge Vijay Nair was also arrested in September 2022, and former Delhi Deputy CM Manish Sisodia was arrested in February, this year. 

Case Title: Sanjay Singh v. Union of India & Anr.