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Judicial Custody of Supertech’s Chairman Extended Till Aug7

By LokMarg 24th July 2023

Delhi’s Patiala House Court on Monday extended Supertech’s Chairman RK Arora’s judicial custody till August 7. He was recently arrested by the Enforcement Directorate in connection with money laundering case.

On Monday, RK Arora was presented before Delhi’s Patiala House Court’s judge Additional Sessions Judge Devender Kumar Jangala after the end of his Judicial custody period.
The Court also fixed date of hearing on August 7 for an arguement on an application filed by accused seeking copy of grounds of arrest which is pending. Reply to said application has been filed by ED.

It was submitted by accused’s counsel that in absence of grounds of arrest given to accused the accused is not able to move an effective bail application.

Earlier while sending Arora to ED remand, Court said that “The power to seek remand is essentially a part of the power of arrest and to conduct investigation in respect to commission of the alleged offence of money laundering and this power has necessarily to be inferred with the help of above Section as Section 65 of the PMLA, 2002 does not prohibit remand of an accused under the said act to ED custody”.

The court also said that when it comes to power of the ED officers to seek ED custody of the accused, it had observed that though Section 19 of the Prevention of Money Laundering Act (PMLA) do not confer any specific power in this regard, but this power has to be inferred with the help of provisions contained in Section 65 of the PMLA, 2002 and Section 167 of CrPC as Section 65 of the PMLA provides that the provisions of CrPC shall apply, in so far as they are not inconsistent with the provisions of this Act, to arrest, search and seizure, attachment, confiscation, investigation, prosecution and all other proceedings.

“It is contended on behalf of accused that the present ECIR was registered in the year 2021 and the applicant has been repeatedly examined by the investigating agency and after completion of investigation provisional attachment order dated 11.04.2023 has been issued and hence there was no requirement of arrest. The issuance of provisional attachment order by the competent authority does not means that the investigation qua the offences defined under Section 3 punishable under Section 4 of PMLA has been completed,” the court noted.

It has been specifically stated by the ED that the investigation for commission of offence punishable under Section 3/4 of PMLA is not yet complete, therefore the Enforcement Directorate is justified to seek custody of the applicant/accused, the court said.

However, the court had earlier directed that his interrogation shall be conducted at some place having CCTV coverage in accordance with the guidelines laid down by the Supreme Court and also in accordance with all the other applicable rules, directions and guidelines on the subject and the said CCTV footage shall be preserved.

Earlier, ED has apprised the court that 26 FIRS were registered by EOW, Delhi Police; Haryana Police and UP Police against Supertech Limited and its group companies under Section 120B (criminal conspiracy) read with 406(criminal breach of trust)/420 (cheating)/467/471 IPC having allegations of cheating atleast 670 home buyers for an amount of Rs 164 Crores. ED also alleged that the amount collected by Supertech Ltd was diverted to their group companies for purchase of properties and the company with land having much lesser value.

ED alleged that the accused persons have acquired properties, made illegal/wrongful gain arising out the said proceeds of crime by involving, indulging and commissioning of criminal activities related to scheduled offences.

It is stated that the prima facie case for commission of offence punishable under Section 3 punishable under Section 4 of the PML Act has been made out.

Arora’s defence lawyer RK Handoo opposed the plea and submitted that his client has been illegally arrested and no grounds of arrest have been furnished.

He also apprised the court that present ECIR was registered in the year 2021 and the applicant has been repeatedly examined by the investigating agency and after completion of investigation provisional attachment order dated April 11, 2023 has been issued. That once the investigation has already been completed, therefore was no requirement of arrest, the defence lawyer said.

He further submitted that the offences of Enforcement Directorate are not the police officers, under law, therefore, the enforcement directorate is not entitled for custody remand of the applicant/accused. (ANI)