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Synopsis

Special Counsel Zoheb Hussain, representing ED, argued that the department was not afforded an opportunity by the Trial Court to argue on the issue of sanction in the Waqf Board money laundering case concerning AAP MLA Amanatullah Khan. 

The bench of Justice Vikas Mahajan issued notice and directed the trial court to defer the matter. The case was further listed for March 21, 2025.

During the hearing, Special Counsel Zoheb Hussain argued that the findings in the impugned order, along with the supplementary prosecution complaint, provided sufficient grounds to proceed against Khan. He stated that cognizance was taken in the main complaint, but Khan was arrayed as a government officer in the main complaint.  

Special Counsel Hussain further submitted that the ED possessed a sanction against Khan, which was placed on record. He contended that the said sanctions could have produced it but were never given an opportunity. He emphasized that the lack of sanction was not an absolute bar and was a curable defect, for which an opportunity should be granted to rectify the issue.  

Special Counsel Hussain also informed the court that the wife of the accused had allegedly received proceeds of crime but was not prosecuted due to a lack of mens rea. When questioned by the court about the findings against Khan’s wife, Hussain stated that the agency was not allowed to take cognizance against her. He reiterated that the allegations suggested she had knowingly assisted her husband in receiving the illicit funds.  

Citing the Prakash Singh Badal case, Special Counsel Hussain argued that the requirement for bail under the Prevention of Money Laundering Act (PMLA) depended on the satisfaction of Section 45. He also pointed out that when Khan approached the High Court prior to his arrest, his application was rejected, and the Supreme Court had chosen not to interfere.  

Background:

Khan was taken into custody by the Enforcement Directorate for his involvement in illegal recruitment practices and the misappropriation of Waqf Board funds for personal gain. The agency claimed that Khan “utilized the proceeds of crime from these illegal recruitments to acquire assets in the name of associates.”  The ED proceeded to file a chargesheet against Khan and four other persons, including three of his associates- Zeeshan Haider, Daud Nasir, and Jawed Imam Siddiqui. These individuals were arrested in November 2023 during raids on the MLA’s premises.

A bench headed by Justice Rekha Palli heard Khan’s case in January 2024 and refrained from issuing any immediate orders. Subsequently, the ED issued summons against the former MLA, who moved the Delhi High Court challenging these.

In February 2024, a bench comprising Justices Rekha Palli and Rajnish Bhatnagar refused to stay the summons and questioned the maintainability of Khan’s plea. Khan later withdrew his plea.

In March 2024, Khan filed a bail application before a trial court, which was dismissed. He then approached the High Court, filing an appeal against the trial court’s order.

Khan claimed innocence of criminal wrongdoing and violation of the Prevention of Money Laundering Act (PMLA) and stated that his life and liberty must be protected from the unwarranted and unjustified encroachment of the ED. He further said that he was being targeted through frivolous and baseless allegations.

Notably, Khan had accused the government of targeting him and other AAP leaders. He was represented in the court by Senior Advocate Kapil Sibal along with other advocates.

After his anticipatory bail plea was rejected by both the Delhi High Court and Supreme Court, Khan was arrested by the ED.

In September 2024, Khan challenged his arrest and remand, based on a trial court order, in the Delhi High Court. His counsel, Senior Advocate Vikram Chaudhari told the court that the MLA’s arrest was illegal and sought that the remand order passed by the trial court be quashed.

However, Special Counsel Zoheb Hossain, representing the ED, said that Khan had previously suppressed material facts during his anticipatory bail application

For Petitioner: Special Counsel Zoheb Hossain, Special Public Prosecutor Manish Jain with Advocates Vivek Gurnani, Kartik Sahbrwal, Kunal Kochar, Pranjal Tripathi and Ilma Khan
Case Title: Directorate Of Enforcement v Amanatullah Khan (CRL.REV.P.-1329/2024)