Delhi Court Denies Bail To RJD MP Amrendra Dhari Singh In Money Laundering Case Related To Fertilizers Scam

A Delhi Court on Wednesday dismissed the bail plea filed by RJD Rajya Sabha MP Amrendra Dhari Singh in connection with a money laundering case related to the alleged fertilizers scam.

Special Judge Vikas Dhull rejected the bail plea after observing that the twin conditions as mentioned in Sec. 45 of the PMLA are required to be made applicable in the matter.

"Therefore, taking into account the above mentioned factors, even if twin conditions mentioned in Section 45 of PMLA are ignored, then also having regard to the serious economic offence committed by accused wherein the alleged amount of Rs.685 Crores has been laundered, the possibility of tempering with the witnesses, the accused being an influential person and the investigation being at an initial stage, the court is not inclined to release the accused on bail even as per Section 439 Cr.P.C. Hence, the bail application filed by accused Amarendra Dhari Singh is dismissed." The Court held.

CBI had registered a case on 17th May 2021 under sec. 120B, 420 IPC and Sec. 13(1)(d) r/w Sec. 13(2) of the Prevention of Corruption Act, 1988 against the Singh and other accused persons.

It was alleged that the accused persons entered into a criminal conspiracy during 2007 to 2014 and cheated and defrauded IFFCO and Indian Potash Limited (IPL), its share holders and the Government of India by allegedly and fraudulently importing fertilizers and other materials for fertilizer production at inflated prices by claiming higher subsidy from Government of India causing loss of several crores of rupees. It was also alleged that they had siphoned off the commission received from the suppliers through a complex web of fake commercial transactions through multiple companies owned by the accused persons, registered outside India in order to camouflage the fraudulent transactions.

In view of this, it was alleged that Singh acted as an intermediary along with other accused for channelizing the ill gotten money through different firms and companies and that he had allegedly received Rs. 685 Crores in the bank accounts of the group companies and individual account of Rajeev Saxena and other accused including Singh.

Special Public Prosecutor Nitesh Rana along with Advocate Zoheb Hossain appeared for Enforcement Directorate in the matter.

It was submitted on behalf of Singh that although bail application under Section 45 of the PMLA had been filed but the twin conditions mentioned in Section 45 of PMLA are not required to be considered, being

inapplicable. It was also submitted that the twin conditions were struck down by the Supreme Court however the same were again revived in amended Section 45 of PMLA.

Furthermore, it was submitted that the aforesaid question was taken into consideration by various High Courts wherein they have taken a consistent view that twin conditions do not stand revived pursuant to the amendment.

On the other hand, it was submitted on behalf of ED that Upendra Rai's case had been stayed by the Supreme Court of India vide order dated 03.06.2020. It was also submitted that the twin conditions are not declared to be constitutionally invalid till date by any court. Therefore, Section 45 of PMLA will be applicable to the present bail application.

In view of this, the Court observed thus;

"Further, having regard to the fact that twin conditions in the amended Section 45 of the PMLA have not been struck down being unconstitutional till date by any court in India, therefore, twin conditions as mentioned in Section 45 of the PMLA are required to be made applicable to the present bail application."

"Even assuming that twin conditions as mentioned in amended Section 45 of PMLA are not applicable, then also accused is not entitled to bail." The Court said further.

Title: Directorate of Enforcement Vs. Amarendra Dhari Singh

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