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Time of India
21 minutes ago
- Business
- Time of India
HC clears Bhujbal's CA in money laundering case
Mumbai: Bombay HC recently discharged the chartered accountant of state minister and NCP leader Chhagan Bhujbal and his family, in a money laundering case. Justice R N Laddha set aside a special judge's March 2021 order that rejected the discharge application of the CA, Shyam Malpani (62). ED had registered a case under PMLA against the Bhujbals in connection with allegations of receiving kickbacks in the construction of Maharashtra Sadan. It alleged Malpani actively participated in the offence of money laundering through acts of omission and commission while serving as a CA for entities controlled by the Bhujbals. He was responsible for auditing their finances and was aware of suspicious and sham transactions, it said. He failed to exercise due diligence as an auditor and by his inaction, he enabled the Bhujbals to accumulate and launder illicit funds, it added. Senior advocate Pranav Badheka for Malpani said he was neither named an accused nor chargesheeted in any of the offences. Malpani audited the accounts only for March 2012-15, whereas the alleged proceeds of crime were from 2007-08, he said. Badheka said an auditor is not supposed to function as an investigator nor obliged to scrutinise every transaction in the company's books. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Windows Users & Owners Don't Forget To Do This Before Friday Read More Undo Justice Laddha noted that there was no substantive material on record to show that Malpani had any knowledge of the sham transactions or was negligent in the discharge of his duties. "The complaint lacks material to establish a nexus between the applicant and the alleged criminal conspiracy or money laundering activities. Moreover, the applicant has neither been named nor chargesheeted in the related crimes, which further reinforces the absence of any direct or indirect involvement. " He agreed with Badheka that the absence of due diligence, even if presumed, does not amount to the commission or omission of an offence under PMLA Section 3 (money laundering). Malpani was not a beneficiary of the proceeds of crime, he noted.
New Indian Express
4 hours ago
- Politics
- New Indian Express
Over 300 mule account passbooks seized in ED raids linked to Delhi classroom 'scam'
NEW DELHI: The Enforcement Directorate (ED) has seized more than 300 bank passbooks linked to mule accounts opened in the names of labourers, allegedly used for diverting Delhi government funds sourced from the classroom-construction 'scam' during the previous AAP regime, officials said on Friday. It is to be noted here that ED officials conducted searches in connection with the case at 37 locations across Delhi on June 18. The AAP termed the move a 'desperate' attempt to divert public attention and asserted that the allegations against its leaders were 'politically motivated'. The ED registered an Enforcement Case Information Report (ECIR), which is equivalent to a police FIR, under criminal provisions of the Prevention of Money Laundering Act (PMLA). This was based on an FIR registered by the Anti-Corruption Branch (ACB) of Delhi on 30 April against AAP leaders and former ministers in the cabinet of Chief Minister Arvind Kejriwal, including Manish Sisodia, Satyendar Jain, and a few others. Later, in a statement, a copy of which is with this newspaper, the ED said its officials had 'unearthed substantial incriminating evidence from the premises of a private contractor'. It said, 'Among the materials seized were original departmental files belonging to the Government of National Capital Territory of Delhi, as well as rubber stamps bearing the names and designations of officials from the Public Works Department (PWD).'
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Business Standard
4 hours ago
- Business
- Business Standard
Summonses issued to Saluja's lawyers cause unrest among legal fraternity
Not taking kindly to the Enforcement Directorate's (ED's) summons -- later withdrawn -- to two senior advocates Pratap Venugopal and Arvind Datar, legal experts have said though the agency can send such notices, this should be done only in the rarest of the rare cases. 'Normally and ideally unless the ED has concrete clear and irrefutable evidence as to the complicity of the lawyer in the matter of circumvention of any criminal law, a lawyer is a professional and the rules of confidentiality govern the relations with the clients and therefore the lawyer should not ideally be subject to any kind of investigation,' senior advocate Sanjoy Ghose told Business Standard. 'It is the independence of the judiciary which is at stake because if agencies proceed against lawyers, then the lawyers will not be defending their clients,' Ghose said. The Supreme Court Advocates-on-Record Association (SCAORA) on Friday wrote to the chief justice of India, deploring the ED's action and seeking suo motu cognizance of the issuance of the summons to Venugopal. It said the ED's action had ramifications for 'independence of the legal profession' and the 'foundational principle of lawyer-client privilege'. Earlier this month, the ED had first sent notice to Datar, asking him to appear before the agency in connection with legal advice he had given Care Health Insurance on employee stock options (ESOPs) issued to former Religare Enterprises chairperson Rashmi Saluja. After protests from lawyers and representations before the Supreme Court, the notice was withdrawn. On June 18, the agency issued a second summons, this time to Venugopal in connection with the same issue. In its notice, the ED asked Venugopal to furnish records pertaining to communication between him and Care Health Insurance as well as Religare Enterprises. He was also asked to furnish these details on the legal opinion given for the grant of ESOPs to Saluja after the rejection of the grant by the insurance regulator. The summons also required Venugopal to tender details of payment made by Care Health, Religare Enterprises, and other associate entities against the legal service sought by the companies. He was asked to appear on June 27 before the assistant director of the ED in Mumbai. 'Legal opinion falls under the protection of attorney-client privilege. However, the issue becomes legally complex when legal opinion is allegedly used to facilitate an illegal transaction, such as money laundering or/and when the notice does not directly seek privileged communication, but circumstantial information such as payments received or internal communications,' said Alay Razvi, managing partner of law firm Accord Juris. Though lawyers can be summoned under procedural laws like the Prevention of Money Laundering Act (PMLA), 2002, it is contentious and opposed by the legal fraternity, Razvi said. Himanshu Vidhani, partner at law firm Chandhiok & Mahajan, said the ED issuing summons to Datar and Venugopal appeared to be unprecedented. Section 132 of the Bharatiya Sakshya Adhiniyam, 2023 (previously Section 126 of the Indian Evidence Act), provides protection of the attorney-client privilege. The Madras High Court had in 2002 deprecated the issuance of a summons to an advocate. 'Allowing investigative agencies to question advocates on advice given to clients would destabilise the foundation and independence of the legal profession, particularly in connection with criminal and white collar defence,' said Divyam Agarwal, partner at law firm JSA Advocates & Solicitors. Chinmay Bhosale, advocate at Bombay High Court, said: 'In no way can an advocate be considered responsible for his or her client's actions.' An ED statement said: 'ED has issued a Circular for the guidance of the field formations that no summons shall be issued to any Advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. Further if any summons needs to be issued under the exceptions carved out in proviso to section 132 of the BSA, 2023, the same shall be issued only with the prior approval of the Director, ED.'
Hindustan Times
5 hours ago
- Politics
- Hindustan Times
‘322 bank passbooks…': What probe agency found after raids in Delhi classroom construction ‘scam'
The Enforcement Directorate on Friday said it had seized over 300 passbooks linked to mule accounts opened in the names of labourers that were allegedly used to divert the Delhi government funds from the 'classroom construction scam' during the previous Aam Aadmi Party regime. The Aam Aadmi Party dismissed the ED's action as a "desperate" bid to divert public attention.(HT file photo) The passbooks were seized after the probe agency conducted searches in connection with the case at 37 locations in Delhi on June 18. In a statement, the ED said officials have 'unearthed substantial incriminating evidence from the premises of a private contractor'. "Among the materials seized were original departmental files belonging to the Government of National Capital Territory of Delhi, as well as rubber stamps bearing the names and designations of officials from the Public Works Department (PWD)," it said. Also Read | AAP deceiving people with 'fake' edu, healthcare models: Congress The agency added that officials also found "322 bank passbooks linked to mule accounts (used for transacting illicit funds) opened in the names of labourers used to divert government funds under the guise of legitimate transactions". The agency also seized 'forged letterheads' of private contractors and shell entities, which were allegedly used to create fake procurement records and fictitious purchase bills. The ED said the case pertains to financial "misappropriation" exceeding ₹ 2,000 crore in the construction of 12,748 additional classrooms by the PWD between 2015 and 2023. Also Read | Union home ministry gives go ahead to ED to prosecute Kejriwal Despite an initial requirement for 2,405 classrooms, the project scope was "arbitrarily" increased to 7,180 equivalent classrooms and, subsequently, to 12,748 rooms "without" proper sanction or approvals, resulting in "massive" cost escalations, the agency said. Aam Aadmi Party reacts The Aam Aadmi Party dismissed the ED's action as a "desperate" bid to divert public attention, calling the allegations against its leaders "politically motivated." In a statement on June 18, the party said the 'so-called raids' were a diversionary tactic, describing the charges as baseless and timed to deflect focus from the BJP's 'anti-people actions.' The ED case, filed under the Prevention of Money Laundering Act (PMLA), stems from an FIR registered by the Anti-Corruption Branch (ACB) of Delhi on April 30 against Aam Aadmi Party (AAP) leaders and former ministers in the cabinet of chief minister Arvind Kejriwal -- Manish Sisodia, Satyendar Jain and some others.
Hans India
8 hours ago
- Politics
- Hans India
Classroom case: ED raids 37 locations in Delhi, seizes 322 bank passbooks
New Delhi: The Enforcement Directorate (ED), Delhi Zonal Office conducted search operations at 37 locations across the national Capital under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in the Delhi classroom construction irregularities case and recovered digital evidence and 322 bank passbooks linked to mule accounts opened in the names of labourers, allegedly to divert government funds. "During the searches, original departmental files belonging to the Government of National Capital Territory of Delhi (GNCTD) and rubber stamps of officials of Public Works Department (PWD), various incriminating documents showing fake invoices submitted to GNCTD departments, showing inflated/bogus claims, digital evidence and 322 bank passbooks linked to mule accounts opened in the names of labourers to divert government funds were recovered and seized", said an ED Press statement on Friday. It is pertinent to note here that the ED initiated this investigation on the basis of a First Information Report (FIR) registered by the Anti-Corruption Branch (ACB) on April 30, alleging irregularities in the construction of 12,748 classrooms or semi-permanent structures in government schools. On April 30, the ACB registered a FIR against senior Aam Aadmi Party (AAP) ministers Manish Sisodia (the then Education Minister) and Satyendar Jain (the then Public Works Department minister) and others, over alleged corruption in the construction of classrooms. The FIR was pertaining to financial misappropriation exceeding Rs 2,000 crore in the construction of approximately 12,748 additional classrooms by the PWD, between 2015 and 2023. Notably, Manish Sisodia on Friday was questioned for nearly three hours by the ACB over the same case. The former Deputy Chief Minister of Delhi left the ACB's office at around 2.40 P.M. after appearing before investigators around noon. While the former education minister accused the ruling Bharatiya Janata Party (BJP) of misusing investigative agencies for political vendetta, the ACB said that the scam involved inflated costs in the construction of classrooms and school buildings under the Delhi government.
