Latest news with #PreventionofMoneyLaunderingAct
Indian Express
26 minutes ago
- Politics
- Indian Express
ED retreats after uproar, withdraws summons to top advocates
Under fire from the legal fraternity over its summons to Senior Advocates Pratap Venugopal and Arvind Datar in connection with a case in which they had rendered legal advice, the Enforcement Directorate said Friday it had instructed field formations not to issue summons to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023 — the section deals with the confidentiality of communications between an advocate and client. Any exception necessitating the issue of summons 'shall be issued only with the prior approval of the Director, ED', the probe agency said in a statement to the press. The ED's summons to Datar and Venugopal had drawn not just criticism but also raised questions on whether such summons can dilute attorney-client privilege. The lawyers were summoned under Section 50 of the Prevention of Money Laundering Act (PMLA) in a case of alleged money laundering. It is learnt that Datar wrote to the agency, expressing his inability to respond to the summons, citing attorney-client privilege. Sources in the ED told The Indian Express that the summons to Datar had 'expired' and no fresh summons had been issued. Venugopal received a communication from the ED, clarifying that the summons for June 24 had been 'withdrawn'. Non-compliance of summons by the ED is an offence under the PMLA. However, lawyers are protected under evidentiary laws from being compelled to issue statements or testify against their clients. Advocate Vipin Nair, President of the Supreme Court Advocates-on-Record Association, wrote to Chief Justice of India B R Gavai, urging him to take suo motu action against the ED. 'These actions, by the ED, we believe, amount to an impermissible transgression of the sacrosanct lawyer-client privilege, and pose a serious threat to the autonomy and fearless functioning of advocates. Such unwarranted and coercive measures against senior members of the Bar for discharge of professional duties set a dangerous precedent, potentially resulting in a chilling effect across the legal community,' Nair wrote. The Supreme Court Bar Association (SCBA) too condemned the ED summons to Venugopal and Datar, saying the actions 'reflect a disturbing trend, striking at the very foundations of the legal profession and undermining the independence of the Bar' and also reflect 'an illegal, perverse and intimidatory use of state power'. A statement issued by Advocate Pragya Baghel said 'the Executive Committee of… SCBA unanimously resolved and expresses its deep anguish, concern and unequivocal condemnation of the action taken by the Enforcement Directorate (ED) in summoning and issuance of Notice to Mr. Pratap Venugopal, Senior Advocate and member of SCBA, for the services rendered in discharge of professional duty.' On Friday, in its statement to the press, the ED said, 'The Mumbai Branch of ED is conducting a money-laundering investigation in which it has been alleged that shares of M/s Care Health Insurance Ltd (CHIL) were issued at a much lower price in the form of ESOPs on 1st May, 2022, in spite of the rejection of the same by Insurance Regulatory and Development Authority of India (IRDAI).' 'As part of investigation, a summons was issued to Shri Pratap Venugopal, an Independent Director of CHIL, to understand the circumstances under which the company has issued the ESOPs despite its rejection by IRDAI and subsequent discussions in the Board of CHIL in this regard. It is also pertinent to note that IRDAI on 23.07.2024 had directed the CHIL to revoke or cancel any ESOPs that have yet to be allotted and has also imposed a penalty of Rs 1 crore on CHIL for non-compliance with regulatory directions,' the ED said. 'In view of the fact that Shri Pratap Venugopal is a Senior Advocate in the Hon'ble Supreme Court, the summons issued to him has been withdrawn and same has been communicated to him. In the said communication, it has also been stated that if any documents will be required from him in his capacity as an Independent Director of CHIL, the same will be requested from him to be submitted by email,' it said. 'Further, the ED has also 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,' the agency said. — With ENS inputs Apurva Vishwanath is the National Legal Editor of The Indian Express in New Delhi. She graduated with a B.A., LL. B (Hons) from Dr Ram Manohar Lohiya National Law University, Lucknow. She joined the newspaper in 2019 and in her current role, oversees the newspapers coverage of legal issues. She also closely tracks judicial appointments. Prior to her role at the Indian Express, she has worked with ThePrint and Mint. ... Read More
Time of India
5 hours ago
- Politics
- Time of India
HC notice to ED on Chhavi writ petition
Ranchi: The Jharkhand high court today issued notice to the Enforcement Directorate in a criminal writ petition filed by former Ranchi deputy commissioner Chhavi Ranjan. Ranjan has moved the high court challenging the cognizance taken against him under the Prevention of Money Laundering Act for his involvement in the illegal sale of army land in Bargain in Bariatu in the capital. Ranjan is in custody since May 2023. Ranjan has alleged that the trial in his case has commenced without obtaining the sanction for prosecution from the government. The case in the high court will be heard again on July 18.
New Indian Express
5 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
5 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
6 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.
