The Supreme Court on Tuesday refused to interfere with the Rajasthan High Court’s denial of bail to former MLA Baljeet Yadav in a money laundering case arising from alleged irregularities in the procurement of sports equipment for 32 government schools using MLA-LAD funds.
A Division Bench comprising Justice Dipankar Datta and Justice Sheel Nagu dismissed Yadav’s plea challenging the High Court’s order.
Senior Advocate Siddharth Luthra, appearing for Yadav, argued that the prosecution complaint was yet to be taken cognisance of as proceedings remained pending for removal of defects despite repeated dates. He questioned the delay in progressing the matter and submitted that the prosecution had repeatedly sought time even after filing a supplementary complaint. They repeatedly seek adjournments; in fact, dates have been requested and granted fifteen separate times, Luthra submitted.
Luthra also relied on an inquiry report relating to the procurement of sports equipment, submitting that it recorded that the equipment had been supplied and that there were no complaints regarding its quality.
He further argued that the material relied upon by the Enforcement Directorate (ED) did not establish a case of money laundering against Yadav. He pointed out that proceedings relating to the predicate offence, as well as Yadav’s challenge to the legality of his arrest, were pending. He submitted that the issue regarding the legality of the arrest remained pending before the High Court, where it had been challenged and was yet to be decided.
Senior Advocate Zoheb Hossain, appearing for the ED, opposed the bail plea and submitted that Yadav failed to satisfy the twin conditions prescribed under the Prevention of Money Laundering Act, 2002 (PMLA).
According to the ED, Yadav had recommended four entities for procurement of sports equipment, following which government funds released to those entities were allegedly transferred to persons forming part of his network.
Hossain submitted that government funds credited by the Alwar Treasury Office into the bank accounts of tender winners were not used for procuring goods or paying suppliers. Instead, the funds were allegedly diverted to individuals linked to Baljeet Yadav and his brother, Rao Virendra Singh.
The ED also placed before the Court an alleged one-to-one mapping of the money trail, including transfers from the tender-awarded entities to Yadav’s relatives. It contended that public funds meant for MLA-LAD works were ultimately siphoned off through persons associated with Yadav.
Hossain stated that those were all public funds, specifically MLA-LAD funds, which were meant to be used for public benefit.
The agency also alleged that there had been attempts to intimidate witnesses and destroy evidence. Referring to statements recorded during the investigation, Hossain cited the statement of a proprietor of one of the bidding entities, who allegedly claimed that he was instructed to delete WhatsApp messages and warned against disclosing information concerning Yadav.
Referring to the alleged threat involving Yadav and Rao Virendra, Hossain submitted that Naveen Sharma had instructed him to delete WhatsApp and advised him to stay silent.
The ED further submitted that several persons connected with the tender entities and Yadav’s associates had failed to appear despite summonses. It also informed the Court that a mobile phone was subsequently recovered from Yadav while he was in custody, leading to registration of a fresh FIR.
Relying on the alleged money trail and witness statements, the ED argued that there were reasonable grounds to believe that the allegations against Yadav were prima facie established and that he failed to meet the statutory requirements for bail under the PMLA.
The Supreme Court ultimately dismissed Yadav’s plea and declined to interfere with the Rajasthan High Court’s order refusing him bail.
The post Supreme Court refuses bail to former Rajasthan MLA Baljeet Yadav in money laundering case appeared first on India Legal.