Court held that oral communication of arrest grounds is sufficient compliance under Section 19 of the PMLA prior to updates in judicial interpretation, validating the legality of the petitioner’s arrest.

JUDGMENT

Vikas Mahajan, J. - The issue involved in the above two cases is inextricably intertwined, therefore, they are being disposed of by a common judgment.

2. CRL.M.C. 4376/2023 has been filed by the petitioner seeking the following relief:

"(i) Declare the arrest of the Petitioner being in gross violation of the settled tenets of law in Section 41A(3) Cr.PC;

(ii) Declare all consequential actions including the remand order(s) dated 10.06.2023 & 20.06.2023 passed by Ld. Duty judge/ Special CBI Judge as null and void;

(iii) That pending the hearing and final disposal of the present Petition, this Hon'ble Court be pleased to stay the Impugned Order(S) dated 10.06.2023 & 20.06.2023;

(iv) That pending the hearing and final disposal of the present. Petition, this Hon'ble Court be pleased to release the Petitioner from the abjectly illegal custody and incarceration;

(v) That pending the hearing and final disposal, further investigation in ECIR No. DLZO-II/06/2019 dated 29.08.2019 against the Petitioner be stayed;

(vi) For such other and further interim/ad-interim reliefs as the nature and circumstances of the case may require."

3. BAIL APPLN 2356/2023 has been filed on behalf of the petitioner seeking grant of regular bail in ECIR/DLZO-II/06/2019 registered by the Directorate of Enforcement.

4. The brief facts which are relevant for disposing of the aforesaid two cases are as under:

i. The petitioner is a businessman and was the ex-promoter, Vice Chairman and Managing Director of M/s Bhushan Steel Ltd. (hereinafter referred to as 'BSL'). However, pursuant to proceedings initiated under the Insolvency and Bankruptcy Code, 2016, BSL was acquired by Tata Steel in terms of the order dated 15.05.2018 passed by the National Company Law Tribunal.

ii. Before BSL was taken over by Tata Steel, the Ministry of Corporate Affairs in exercise of its powers under Section 212(1)(c) of the COMPANIES ACT , 2013 vide order dated 03.05.2016 ordered investigation into the affairs of BSL by the Serious Fraud Investigation Officer (hereinafter referred to as "SFIO"). The SFIO filed a complaint case under various provisions of the COMPANIES ACT , 2013 including Section 447 and under Sections 409 /467/468/471 and 120B of the INDIAN PENAL CODE , 1860.

iii. Thereafter, the Directorate of Enforcement registered the subject ECIR under the provisions of Prevention of Money Laundering Act, 2002 (hereinafter referred to as "the PMLA") alleging that the petitioner is involved in one of the biggest banking frauds coupled with the offence of money laundering. It is alleged that the petitioner has caused loss to the public to the tune of more than Rs. 46,000 Crores. It is the case of the respondent that the petitioner in connivance with other accused persons / business entities knowingly resorted to illegitimate acquisition of loan funds in the name of BSL & other group companies and indulged in laundering of proceeds of crime through a complex web of more than 150 companies having a common core i.e. ownership and control of Mr. Neeraj Singal (the petitioner herein) and Mr. Bharat Bhushan Singal.

iv. It is the case of the petitioner that he has co-operated with the investigation of the respondent, in as much as, he has appeared before the Directorate of Enforcement about 14 times and has supplied documents which are running into approximately 7500 pages comprising of bank statements and balance sheets of all 148 companies for the period 2009-2017.

v. Later on, the petitioner received summons dated 03.06.2023 from the respondent dir