Delhi HC dismisses Tahir Hussain’s plea challenging Framing of Charges under PMLA [Read Order]

Delhi High Court - PMLA - Taxscan

The Delhi High Court dismissed former Aam Adami Party (AAP) leader Tahir Hussain’s plea in challenging the framing of money laundering charges under Prevention of Money Laundering Act, 2002(PMLA) against him by a trial court in Delhi.

Advocate Naveen Malhotra appeared on behalf of the petitioner,Tahir Hussainand Zoheb Hossain appeared on behalf of the Enforcement Directorate.

The petitioner was charged under Section 3, which is punishable under Section 4 of the Prevention of Money Laundering Act, 2002. It was contended by the counsel of the petitioner that no property or proceeds of crime were seized from Hussain which could justify the framing of charges against him for money laundering .

On the other hand the ED had contended that bank accounts allegedly used by Hussain will be property within the meaning of section 8(5) of the PMLA.

Justice Anu Malhotra viewed that the alleged commission of a conspiracy “even for the purpose of GST violation in order to avail money” through criminal conspiracy for using proceeds of crime to commit 2020 riots and to cause unrest, prima facie falls within the ambit of commission of a scheduled offence under PMLA.

The Trial Court held that “prima facie case is made out against the accused/ petitioner herein of the alleged commission of the offence under Section 3 of the PMLA, 2002 punishable under Section 4 of the said enactment, in as much as, the petitioner allegedly actedprima facie in conspiracy and engaged in money laundering with the proceeds of crime generated having been put to use for riots by way of fraudulently withdrawing money from the accounts of companies owned or controlled by him through bogus and malafide transactions with bogus entry operators on the strength of fake bills.”

Further being the beneficiary of the same and with intent to put the said money to fund the Delhi riots and obtained property as the result of the criminal activity relatable to the scheduled offence as the proceeds of crime to make him prima facie culpable under Section 3 of the PMLA, 2002. The Court upheld the trial court’s order.

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