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IN THE HIGH COURT OF DELHI AT NEW DELHI
Dinesh Kumar Sharma, J.
Benoy Babu – Appellant
Versus
Directorate of Enforcement – Respondent
Bail Appln. 562 of 2023 & Cr.M.(BAIL) 269 of 2023
Decided On : 03-07-2023
BAIL - MONEY LAUNDERING - PMLA - SECTION 3 - OFFENCE OF MONEY LAUNDERING - SCOPE AND AMBIT - PROCESS OR ACTIVITY CONNECTED WITH PROCEEDS OF CRIME - CORPORATE GUARANTEE - WHETHER A PROCESS OR ACTIVITY CONNECTED WITH PROCEEDS OF CRIME - HELD, YES - BAIL APPLICATION DISMISSED.
Fact of the Case:
The petitioner, an employee of Pernod Ricard India (PRI), was arrested for the offence under Section 3 of the Prevention of Money Laundering Act (PMLA). The allegations against him were that he was involved in a conspiracy to frame the excise policy of the Government of Delhi with malafide intention to recoup the kickbacks received in advance from certain individuals and to further generate ill money from the liquor trade. The petitioner was also accused of extending corporate guarantee of Rs. 200 crores to enable the other stakeholders to generate the proceeds of crime.
Finding of the Court:
The court held that the petitioner was involved in a process or activity connected with the proceeds of crime and that there were reasonable grounds for believing that he was guilty of the offence under Section 3 of the PMLA. The court also held that the petitioner had failed to pass the twin conditions as provided under Section 45 of the PMLA and hence, his bail application was dismissed.
Issues: Whether the petitioner was involved in a process or activity connected with the proceeds of crime.
Ratio Decidendi: The court held that the petitioner was involved in a process or activity connected with the proceeds of crime because he was involved in the conspiracy to frame the excise policy of the Government of Delhi with malafide intention to recoup the kickbacks received in advance from certain individuals and to further generate ill money from the liquor trade. The court also held that the petitioner had extended corporate guarantee of Rs. 200 crores to enable the other stakeholders to generate the proceeds of crime.
Final Decision: The court dismissed the petitioner's bail application.
JUDGMENT
INDEX
| S. No. | Particulars | Page No. |
| 1. | Factual Matrix | 2-17 |
| 2. | Submissions on behalf of Petitioner | 18-22 |
| 3. | Submissions on behalf of Respondent/ED | 22-24 |
| 4. | Finding and Analysis | 25-46 |
Dinesh Kumar Sharma, J.
BAIL APPLN. 562/2023 & CRL.M.(BAIL) 269/2023
A. FACTUAL MATRIX
1. The present order shall dispose of the bail application no. 562/2023 of "Benoy Babu vs Directorate of Enforcement".
2. The bail applications filed by petitioner Benoy Babu was dismissed by the learned Special Judge, PC Act, CBI-09 vide order dated 16.02.2023.
3. Briefly the facts as stated by Enforcement Directorate are as under:
"5. An FIR No. RC0032022A0053 dated 17.08.2022 was registered by CBI, ACB, New Delhi against Sh. Manish Sisodia, Deputy Chief Minister, GNCTD of Delhi and others under Section 120B r/w 477A of Indian Penal Code, 1860 and Section 7 of Prevention of Corruption Act, 1988 for irregularities in framing and implementation of the excise policy of GNCTD of Delhi for the year 2021-22.
6. The FIR is registered on the direction of competent authority conveyed by Shri Praveen Kumar Rai, Director, MHA, Govt. Of India vide OM No. 14035/06/2022-Delhi-1 dated 22/07/22 for enquiry into the matter of irregularities in framing and implementation of the excise policy of GNCTD of Delhi for the year 2021-22. Vide said OM Shri Praveen Kumar Rai has also forwarded DO letter no. SLG/Conf./2022/75 dated 20/07/2022 of Shri Vinai Kumar Saxena, Hon'ble Lt. Governor, GNCTD of Delhi alleging irregularities in framing and implementation of the excise policy of GNCTD of Delhi for the year 2021-22.
7. The OM discloses that Shri Manish Sisodia, Deputy Chief Minister, GNCTD of Delhi, Shri Arva Gopi Krishna, the then Commissioner (Excise), GNCTD of Delhi and Shri Pankaj Bhatnagar, Assistant Commissioner (Exicse), GNCTD of Delhi were instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without approval of competent authority with an intention to extend undue favors to the licensees post tender.
8. In the said FIR it has been inter-alia stated/alleged that:
a. Sh. Vijay Nair, Former CEO of M/s Only Much Louder, an entertainment and event management company, Shri Manoj Rai, Ex-employee of M/s Pernod Ricard, Sh. Amandeep Dhall, Owner of M/s Brindco Spirits & Sh. Sameer Mahendru. Owner of M/s Indo Spirits are actively involved in irregularities in framing and implementation of excise policy of GNCTD of Delhi for the year 2021-22.
b. Some of the L-1 Licence holders are issuing credits notes to retail vendors with an ab-initio intention to divert the funds as undue pecuniary advantage to Public Servants. In furtherance to this, they are showing false entries in their books of accounts to keep their record straight.
c. Shri Amit Arora, Director of M/s Buddy Retail Pvt. Limited, 1402, Tower-15, Vipul Greens, Gurgaon. Haryana, Shri Dinesh Arora Rio Plot No.-139, III Floor. Block-A. Gujrawala Town, Phase-I. Delhi. Shri Arjun Pandey are close associates of Shri Manish Sisodia and are actively involved in managing and diverting the undue pecuniary advantage collected from Liquor Licensees to accused public servants. That Shri Sameer Mahendru, MD. M/s Indospirits has transferred an amount of one crore to account no. 10220210004647 of M/s Radha Industries maintained with UCO Bank. Rajendra Place, New Delhi. M/s Radha Industries is being managed by Shri Dinesh Arora. That Shri Arun Ramchandra Pillai used to collect undue pecuniary advantage from Shri Sameer Mahendru, MD. M/s Indospirit for onward transmission to accused public servant through Shri Vijay Nair. A person named Arjun Pandey has once collected huge cash amount of about Rs.2-4 crores from Shri Sameer Mahendru on behalf of Shri Vijay Nair.
d. M/s Mahadev Liquors, a proprietorship firm was granted L- 1 License. Sh. Sunny Marwah is the authorized signatory of the firm. Sh. Sunny Marwah is also director in companies/firms being managed by family of Late Sh. Ponty Chadha. That Sh. Sunny Marwah is in cl
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