HC asks ED to probe money laundering charges against Amar

HC asks ED to probe money laundering charges against Amar

The Allahabad High Court on Friday directed the Enforcement Directorate to investigate charges of money laundering against Rajya Sabha MP Amar Singh, saying that the probe should commence within two weeks.

The court gave the direction while dismissing a petition filed by the former Samajwadi Party general secretary who had challenged an FIR lodged in Kanpur nearly two years ago accusing him of various financial irregularities when the party was in power in Uttar Pradesh.

A division bench comprising justices Imtiyaz Murtaza and S S Tiwari asked the ED to commence the investigation "within two weeks" and submit a status report before the court within a month of the commencement of the probe.

Singh had moved the court challenging an FIR lodged at Babupurwa Police Station in Kanpur on 15th October, 2009 by a local resident Shiv Kant Tripathi under various sections of the IPC, the Prevention of Corruption Act and the Money Laundering Act.

Tripathi had also moved the court with the prayer that the issue be probed by the ED.

The petitions by Singh and Tripathi were clubbed together and heard by the bench which had reserved its judgement on 28th March.

Senior lawyer Ram Jethmalani, who had argued on behalf of Singh, had described the FIR lodged against his client as "clearly an act of malice and fraud" aimed at "settling political scores" and, hence, was "liable to be quashed".

However, the court said it found "no substance in the submissions that the proceeding is liable to be quashed on grounds of malafide and political rivalries".

The court took a serious note of the allegation made by the petitioner that Singh, when the Samajwadi Party was in power in UP and he was the Chairman of the UP Development Council - a post equivalent to that of a cabinet minister - "had indulged in money laundering business by creating a web of shell companies".

"Money laundering poses a serious threat to financial system integrity. It may emerge as a parallel economic system within a country controlled by a few. This may destabilise and perish a sound economy", it said.

"We are of the firm view that it is a pre-eminently fit case for exercise of extra-ordinary power and the matter needs thorough probe by Special Cell as the matter has national ramifications", the court said.

Taking note of the fact that "the companies which are alleged to be shell companies are registered in various states", the court held "the ED being a central agency shall be the appropriate cell capable of carrying out a thorough probe.

"It is, therefore, directed that the entire papers relating to this matter shall be entrusted to the ED within two weeks and immediately after receipt of the papers the ED shall commence investigation. The first status report shall be submitted by the ED within one month after receipt of papers", the court said.

"List this matter in the first week of July on which date the authorities that be shall appear in person and shall submit the first status report", the order said.