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Synopsis

The Delhi High Court on Thursday (October 2) remarked that "an accused cannot be completely discharged while a discharge order is under appeal" while hearing the plea filed by the Enforcement Directorate (ED) against the bail that was granted to Nitin Bhatnagar. Bhatnagar, a Maltese citizen and banker, was arrested in connection with the Moser Baer money laundering scam.

Notably on May 2, the court issued a notice in response to the ED's plea challenging the bail granted to Nitin Bhatnagar by Special Judge Sanjeev Aggarwal of the Rouse Avenue court.

The bench, led by Justice Chandra Dhari Singh, while hearing the plea filed by Senior Advocate Vikas Pahwa seeking permission for Bhatnagar to travel abroad, directed the ED to submit its response regarding the matter.

During the hearing, Special Public Prosecutor, Zoheb Hussain, appearing for the Enforcement Directorate (ED), strongly opposed Bhatnagar's plea to travel abroad, stating, 'The dates of travel have expired' and that he will not return to India as he is a Maltese citizen.

"He is a Maltese citizen, my lordship, and there is a serious apprehension that he will not come back," the SPP argued.

He further emphasized that Bhatnagar's intent to travel to Malta may result in him evading the investigation altogether. Therefore, the SPP urged the court to deny the said permission.

However, Senior Advocate Vikas Pahwa, appearing for Nitin Bhatnagar, refuted ED's stand and argued before the bench that he (Bhatnagar) must be granted permission to travel abroad as he has been discharged on merits.

He pointed out there are no findings that could indicate Bhatnagar received the proceeds of crime in the Moser Baer scam. He further asserted that the ED's stand in the present case is 'frivolous' and has become 'infructuous'.

"How can Bhatnagar not travel now if he is discharged?," said the Senior Advocate Pahwa adding that they would satisfy the court that Bhatnagar deserves the right to travel abroad provided he has been discharged by the court.

While defending Nitin Bhatnagar, Senior Advocate Pahwa argued that despite Bhatnagar being a Maltese citizen, there is no valid reason as to why the court is restricting his rights to travel abroad if no case exists against him. He asserted the relevance of Article 21 of the Indian Constitution which provides the right to life and personal liberty to foreigners as well.

"Even if Bhatnagar is a Maltese citizen, if there’s no case against him, why should he be restricted?" Senior Advocate Vikah Pahwa said while asserting Bhatnagar’s right to travel abroad.

However, the court upheld the ED's position in the matter and adjourned the hearing to 21 October.

Nexus between Moser Baer Scam and Nitin Bhatnagar

According to the Enforcement Directorate (ED), the case originated from an FIR filed by the Central Bank of India (CBI) on 16 August 2019. It was alleged that m/s Moser Baer India Limited and its directors and promoters had caused unlawful financial losses to the said bank amounting to around Rs 354.51 crore.

As per the Enforcement Directorate (ED), an investigation was initiated against m/s Moser Baer India Limited under various provisions of the Prevention of Money Laundering Act (PMLA) and the Indian Penal Code (IPC) and subsequently the bank deemed Moser Baer's account 'fraud'. The investigation further alleged that loans were siphoned off by director Ratul Puri, who is the nephew of Congress leader Kamal Nath.

The ED claimed that Bhatnagar, under the direction of Ratul Puri, established Pristine River Investment Limited, a Dubai-based company that allegedly received proceeds of crime amounting to around USD 14.18 million. The ED further alleged that Nitin Bhatnagar was actively involved in layering the proceeds of crime for the main accused, Ratul Puri.

As a result, On 22 October 2023, Nitin Bhatnagar was arrested at the Airport, while attempting to board a flight to return to Malta.

Case Title: DIRECTORATE OF ENFORCEMENT V/s NITIN BHATNAGAR

[Inputs: ANI]