The Delhi High Court has recently issued notice to the ED on a plea moved by alleged conman Sanjay Prakash Rai, alias Sanjay Sherpuria seeking an order to quash the prosecution complaint filed by the ED and all the proceedings emanating arising out of the ECIR.
The bench of Justice Amit Bansal sought a status report from ED on the plea of Sanjay Prakash Rai for quashing money laundering proceedings against him and listed the matter for further hearing on February 15, 2023.
Appearing for Sanjay Rai, Advocate Nitesh Rana submitted that it is beyond the comprehension of any law as to how the ED has the competent jurisdiction for investigating the offence of money laundering, which allegedly occurred in UP, as the FIR, which is a schedule offence, was registered in Lucknow.
There is no evidence which suggests that any part of the Proceed of Crime has travelled to Delhi.
Furthermore, it was argued that the cognizance taken by the trial court was without application of mind and considering the material on record. The cognizance order is not in accordance with the law settled by the Supreme Court as well as the High Court. The impugned cognizance order is totally in contradiction with the settled principle of law laid down by the Supreme Court and Delhi High Court.
It was also argued by Advocate Nitesh Rana that by mentioning the name of the Prime Minister’s Office, Central Minister or connection with bureaucrats and other big names, The respondent tried to create the castle in the air and intentionally misled the court and induced to take cognizance of frivolous facts.
The plea moved in Delhi High Court by Advocates Deepak Nagar and Anuj Tiwari for Sanjay Prakash Rai further stated that the present investigation in the Impugned ECIR also amounts to ‘Double Jeopardy’ as the same cause of action is already being investigated by the Respondent at Lucknow Zone.
It is submitted that the same cause of action and the same Proceeds of Crime are being investigated at 2 different places by the Respondent for the offence of money laundering, such exercise by the Respondent is a direct violation of Article 20 sub-clause (2) of the Constitution of India, 1949.
According to the plea, the Special Task Force from Vibhuti Khand Police station, Lucknow allegedly on the basis of certain purported intelligence information arrested Sanjay Prakash Rai, the Petitioner on April 25 from Kanpur Railway Station.
Thereafter, ED registered a case for the offence of money laundering under PMLA, 2002 under sections 3 & 4. The Respondent agency invoked the provision of section 19 and arrested the petitioner, Sanjay Prakash Rai on May 24.
According to the ED’s Prosecution Complaint, Sanjay Prakash Rai has received Rs. 12 Crore as proceeds of crime. Out of Rs 12 Crores, Rs 6 Crore was received in YREF (Youth Rural Entrepreneur Foundation) from Dalmia Office Trust and Rs 6 crore in cash from Gaurav Dalmia.
ED further alleged that he also cheated Mohit Singh, MD of Shipra Estate Ltd for Rs. 1 crore in lieu of helping to get him good deals in sale of lands in Lucknow; Rs. 1 crore from Naveen Kumar Malhotra by gaining his trust and influenced him by showing connections with the senior politicians, he could bring him favours and; Rs 51,50,000 from Sunil Chand Goyal on false promise that he will help him in the business expansion.
As per the allegations, Sanjay Prakash Rai claimed to have close links with senior politicians’ bureaucrats and the Prime Minister, and he accumulated a total of Rs 14.51 crore of proceeds of crime.
