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IN THE HIGH COURT OF DELHI
Mukta Gupta, J.
Upendra Rai - Appellants
Vs.
Directorate of Enforcement - Respondent
Bail Appln. 249/2019
Decided On : 09-07-2019
PMLA - Bail Application - Sections 3/4, 120B/420 IPC, 13(2) read with 13(1)(d) PC Act, 120B/384 IPC, Section 8 PC Act - [PMLA, Sections 3/4, 120B/420 IPC, 13(2) read with 13(1)(d) PC Act, 120B/384 IPC, Section 8 PC Act] - The court discussed the offenses under PMLA, IPC, and PC Act, the allegations against the petitioner, and the evidence collected during the investigation. The court also considered the nature of the investigation, severity of the punishment, and the constitutional validity of Section 45(1) of PMLA.
Fact of the Case:
The petitioner sought bail in a case under the Prevention of Money Laundering Act, 2002 (PMLA) and other offenses. The allegations included extortion, money laundering, and obtaining funds through fraudulent means. The petitioner was accused of inducing authorities and forging documents to obtain benefits.
Finding of the Court:
The court considered the nature of the offenses, evidence presented, and the constitutional validity of Section 45(1) of PMLA. It noted the lack of complaints from certain entities and the clarification by the CBI regarding the absence of pecuniary advantage in one of the predicate offenses. The court found it to be a fit case for granting bail to the petitioner.
Issues: The issues revolved around the severity of the offenses, the evidence presented, the constitutional validity of Section 45(1) of PMLA, and the lack of complaints from certain entities.
Ratio Decidendi: The court's decision was influenced by the lack of pecuniary advantage in one of the predicate offenses, the absence of complaints from certain entities, and the constitutional validity of Section 45(1) of PMLA. It also considered the maximum punishment for the offenses and the petitioner's custody duration.
Final Decision: The petitioner was granted bail on furnishing a personal bond and surety bond, subject to conditions regarding travel, change of address, and influencing witnesses or tampering with evidence.
JUDGMENT :
Mukta Gupta, J.
Crl. M.A. 9456/2019 (addl. documents)
Additional documents as placed on record by the petitioner being the application of the respondent before the Trial Court under Section 44(1)(c) PMLA and the reply by the CBI are taken on record.
Application is disposed of.
BAIL APPLN. 249/2019
1. By way of the present bail application, petitioner Upendra Rai seeks regular bail in ECIR/03/HIU/2018 dated 9th May 2018 recorded by Enforcement Directorate, Delhi Zone under Sections 3/4 of the Prevention of Money Laundering Act, 2002 (in short 'PMLA').
2. The above-noted ECIR No. 18/DLZO-II/2016 was recorded by the respondent on 9th May 2018 pursuant to RC-217-2018 A 0003 registered for offences punishable under Sections 120B/420 IPC and Section 13(2) read with Section 13(1)(d) PC Act on 1st May 2018 and RC-217-2018 A 0004 registered for the offences punishable under Sections 120B/384 IPC and Section 8 PC Act on 5th May 2018 by the CBI.
3. Brief conspectus of facts as recorded in the ECIR against Upendra Rai, Rahul Sharma, unknown officials of Income Tax Department, Mumbai and other unknown public servants and private persons are that during the course of investigation in RC-217-2018 A 0004 under Sections 120B/384 IPC and under Section 8 PC Act it was revealed that in September 2017 Upendra Rai approached Mr. Kapil Wadhawan, a relative of the promoter of the company, M/s. White Lion Real Estate Developers Private Limited (in short 'WLREDPL'), Mr. Hiten Sakhuja, portraying himself as a power broker of the Income Tax Department and various other Government Departments. He also impressed that he was a senior journalist having worked with Tehelka, Star TV and was connected to big media houses. In his conversation with Mr. Kapil Wadhawan he claimed that he had sensitive information from the Income Tax Department relating to raids to be conducted on the companies related/associated with M/s. White Lion Real Estate Developers Private Limited and that action would be claimed against them under the new Benami Act.
4. Thereafter, Kapil Wadhawan met Upendra Rai in Delhi at his residence where he was shown a big bunch of documents of the Income Tax Department wherein action was contemplated on a number of companies, including those related/associated with M/s. White Lion Real Estate Developers Private Limited. Upendra Rai demanded huge amount of money to settle the issue with the Income Tax department and adverse media reporting. He claimed that he had contacts in Income Tax department located at Scindia House, Mumbai.
5. Pursuant to this a consultancy agreement dated 3rd October 2017 was entered into between Upendra Rai & Associates and M/s. White Lion Real Estate Developers Private Limited with effect from 1st October 2017 to 30th September 2018. As per the agreement a sum of Rs. 15,19,50,000/- was paid from the account of M/s. White Lion Real Estate Developers Private Limited maintained at Axis Bank to Upendra Rai's account maintained at HDFC Bank between October 2017 and April 2018. On realizing that Upendra Rai was a professional black mailer M/s. White Lion Real Estate Developers Private Limited terminated the consultancy agreement.
6. The allegations against the petitioner in RC-217-2018 A 0003 under Section 120B/420 IPC and Section 13(2) read with 13(1) PC Act with regard to the bank account transaction in the year 2017 depicting the credit entries of Rs. 79 crores and total debit amount of Rs. 78.5 crores and that he purchased a fleet of cars out of the ill-gotten money and received about Rs. 16 crores in one year from Shell companies for bribing/fixing cases in income-tax department. He received Rs. 6.5 crores from M/s. Sahara India in one year and that the petitioner in conspiracy with Prasun Roy, Chief Security Officer of M/s. Air One Aviation Private Limited and unknown officials of Bureau of Civil Aviation (BCAS) cheated BCAS and DIAL, and fraudulently obtained a temporary and permanent Aero-drum Entry Pass (AEP), a valuable s
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