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Synopsis

The Delhi High Court, on Monday, heard the writ petitions of Quint Founders Raghav Bahl and his wife, Ritu Kapur. Bahl was arrested by the Enforcement Directorate (ED) under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act. This led to a PMLA (Prevention of Money Laundering Act) case being registered against the former media baron.  

In the hearing of the case, the bench of Justice Anish Dayal heard arguments presented by Bahl’s counsel. The counsel submitted before the court that both Bahl and Kapur’s matters were interconnected and that she would appear in both these cases simultaneously. 

The counsel also stated that the accused couple needed to travel abroad in order to attend a “global summit” and sought the court’s permission for this. 

Justice Anish Dyal, while transferring the matter to the roster bench, enquired about the date of registration of the FIR against the media baron. The case will now be heard on November 4th, 2024. 

Background:

The Enforcement Directorate (ED) had initiated action against Bahl after the Income Tax Department alleged irregularities in the income tax returns filed by Bahl in the year 2018-2019. The IT Department found that Bahl had not disclosed the source of his funds used to purchase assets in London. This led to a probe against him.

Subsequently, Bahl moved the Delhi High Court in December 2021, seeking protection from coercive action against him and filing a petition demanding the quashing of the FIR against him. The court declined the oral request for discontinuing coercive action against Bahl, but had ordered the ED to respond to his quashing petition. 

In the High Court, Bahl’s counsel, Mukul Rohatgi had argued that money laundering probes could not continue as the former media baron had re-filed his income tax returns for the assessment year 2018-2019, which had been cleared by the authorities. Rohatgi also stated that the Supreme Court also protected Bahl from the IT Department’s proceedings against him.  

However, the Supreme Court granted interim protection from arrest to Bahl. A bench led by then-Chief Justice NV Ramana heard a special leave application against the HC order filed by Bahl, and directed the ED to refrain from coercive action against him. 

In December 2022, a bench of CJI Dr. DY Chandrachud and Justice Surya Kant permitted Bahl and his wife to travel abroad, subject to them providing the court with the details of their itinerary and an undertaking mentioning their date of return. 

During this hearing, Advocate Shyam Divan, appearing for Bahl, submitted that the latter needed to travel, along with his spouse, for medical reasons. Solicitor General Tushar Mehta, representing the ED, stated that the agency needed instructions from the court to allow this. He later stated that Bahl could travel, subject to providing details of his itinerary and date of return, to which the court sought Divan’s opinion. 

When he agreed, the court directed the ED to comply with these conditions and permit Bahl’s foreign travel. 

Notably, in October 2018, Bahl’s organization, Quintillion Media, which runs the Quint, was raided by IT Department officials, along with his Delhi Home. 

Quintillion Media, Raghav Bahl and Ritu Kapur had then issued a statement saying that the attempt to “color their tax returns as bogus is clearly a frame-up.” This statement was issued in an article by the Quint, titled “All LTCG Taxes were Filed and Assessed : Statement from Raghav Bahl.” 

Bahl had also written to Finance Minister Nirmala Sitharaman, stating “a necessary and laudable drive to track and punish money launderers and black money hoarders” should not become a “diversion of resources to hound innocents.” 

Case Title : Raghav Bahl V/s Enforcement Directorate, Ministry of Finance (W.P. (CRL)2392/2021) & Ritu Kapur V/s Union of India and Ors. (W.P (CRL) 1686/2022) 

[With Inputs from the Indian Express]