Delhi High Court denies bail to 2 close associates of MLA Amanatullah Khan in money laundering case
Justice Swarana Kanta Sharma [01-07-2024]

Read Order: ZEESHAN HAIDER AND ORS v. DIRECTORATE OF ENFORCEMENT [DEL HC - BAIL APPLN. 1606/2024 WITH BAIL APPLN. 1091/2024]

LE Correspondent

New Delhi, July 8, 2024: The Delhi High Court has rejected the bail applications of Zeeshan Haider and Daud Nasir, who are accused of involvement in a money laundering case being investigated by the Directorate of Enforcement. The case revolves around allegations of proceeds of crime being laundered by AAP MLA Amanatullah Khan through the purchase of properties in Delhi.

“…the material evidence gathered during the course of the investigation by the Directorate of Enforcement reveals that Amanatullah Khan had hatched a criminal conspiracy along with his close associates i.e., the present applicants/accuseds and others and pursuant to the same, he had invested his ill-gotten money i.e. proceeds of crime, in the immovable properties through his associates namely Zeeshan Haider, Daud Nasir and others,” a Bench of Justice Swarana Kanta Sharma observed.

According to the prosecution, Delhi MLA Amanatullah Khan, in conspiracy with Zeeshan Haider, Daud Nasir, and others, had allegedly laundered proceeds of crime amounting to approximately Rs. 36 crores by utilizing the funds to purchase properties in Jamia Nagar, Delhi. The Directorate of Enforcement claims that out of the total amount, Rs. 27 crores were paid in cash, while Rs. 9 crores were transferred through banking channels.

The High Court, after hearing arguments from both sides and examining the evidence presented, concluded that there is sufficient material at this stage to attract the bar under Section 45 of the Prevention of Money Laundering Act (PMLA) against granting bail to the accused individuals. The court noted that the statements recorded under Section 50 of the PMLA, along with other corroborating evidence such as electronic data, money transactions, and documentary proof, make out a prima facie case regarding the involvement of the accused in the offence of money laundering.

“As alleged, Amanatullah Khan had purchased immovable properties in the name of benamidars i.e. the present applicants Zeeshan Haider and Daud Nasir, by concealing and suppressing their actual value which is very nominal in comparison to their actual sale value and actively concealed amounts that were paid in cash to the seller, which are the proceeds of crime acquired by Amanatullah Khan out of his corrupt and illegal activities relating to the offences scheduled under PMLA,” the bench observed.

The high court observed that the offence of money laundering is a serious crime with transnational impact on financial systems and sovereignty of countries. The bench emphasized that at the bail stage, it is not required to conduct a mini-trial or meticulously examine the evidence, but rather assess whether the accused have made out reasonable grounds for believing they are not guilty of the offence.

The high court also took note of the conduct of one of the accused, Daud Nasir, who had allegedly misled the court by misrepresenting the need for interim bail, which was granted based on the necessity of his wife's major surgery. However, it was later revealed that the surgery performed was of a minor nature and at a different hospital than initially stated.

“This Court is of the opinion that the applicant/accused Daud Nasir has misled the Court by misrepresenting the need for interim bail, which was granted based on the necessity of a major surgery at Fortis Hospital. Thus, the conduct of the applicant Daud Nasir is doubtful and this Court is of the opinion if the applicant Daud Nasir if released on bail, may misuse the liberty and may attempt to tamper with evidence or influence witnesses,” the HC held.

The high court, thus, dismissed the bail applications of the two accused persons.