Money Laundering Case: Delhi HC Reserves Order On Jacqueline Fernandez’s Plea

Prevention of Money Laundering Act (PMLA), 2002

The Delhi High Court on Thursday reserved its order on a petition filed by Bollywood actor Jacqueline Fernandez, who has challenged the Enforcement Directorate’s (ED) complaint against her under the Prevention of Money Laundering Act (PMLA), 2002.

The case stems from allegations that Fernandez received extravagant gifts from alleged conman Sukesh Chandrashekhar, who is at the center of a ₹200 crore money laundering scandal.

“Paying The Price For Being A Celebrity”: Counsel Argues

The matter was heard by Justice Anish Dayal, who reserved judgment after detailed arguments from both sides. Senior Advocate Sidharth Aggarwal, appearing for Fernandez, questioned the ED’s basis for implicating her.

Aggarwal contended that if financial transactions with someone later found guilty of a crime are enough to trigger money laundering charges, then even grocery vendors or court officials could be treated as offenders. He stressed the dangers of interpreting the law in a way that criminalizes everyday transactions.

Aggarwal also argued that Fernandez was unaware of Chandrashekhar’s criminal background and had no reason to suspect wrongdoing. “Businessmen often have multiple cases against them,” he said. “Today, I am paying the price of being a celebrity,” he added, quoting Fernandez’s position.

ED Maintains Separate Ground For PMLA Action

Representing the ED, Special Counsel Zoheb Hossain emphasized that money laundering cases under the PMLA are independent of investigations into predicate (scheduled) offences. He asserted that someone can be prosecuted under the PMLA even if they are not an accused in the underlying criminal case.

The ED has maintained that despite being aware of Chandrashekhar’s criminal record, Fernandez continued to accept expensive gifts, and therefore, cannot claim ignorance.

Earlier, the agency opposed Fernandez’s request for quashing the complaint, stating that her plea was a tactic to delay proceedings.

Petitioner Seeks Relief From Defamation, Not Total Quash

Aggarwal clarified that Fernandez isn’t seeking to quash the entire complaint, but only the proceedings against her personally. “Sukesh is sitting in jail and carrying out extortion and fraud from there,” he said, adding that Fernandez’s cooperation with the police and her consistent statements demonstrate her lack of involvement.

Advocates Aggarwal and Prashant Patil argued that Fernandez has suffered reputational damage due to being publicly associated with money laundering. “Being labelled as a money launderer is problematic,” Aggarwal told the court.

Case Insights

Fernandez has requested the court to quash the Enforcement Case Information Report (ECIR) and the supplementary chargesheet filed by the ED. Her petition asserts that the material submitted by the agency clearly shows she is an innocent victim of a scheme orchestrated by Chandrashekhar.

“There is no indication that she had any involvement whatsoever in aiding him to launder his purportedly ill-got wealth,” the plea states. Consequently, Fernandez argues, the charges under Sections 3 and 4 of the PMLA do not apply to her.

The High Court’s decision on the plea is now awaited.