'Proceeds Of Crime Used For Delhi Riots': Court Frames Charges Against Tahir Hussain In Money Laundering Case

A Delhi Court on Thursday framed charges against former Aam Aadmi Party Councillor Tahir Hussain in a money laundering case registered against him in connection with the North East Delhi riots of 2020.

Additional Sessions Judge Amitabh Rawat has framed charges against Tahir Hussain under Section 3 which is punishable under Section 4 of the Prevention of Money Laundering Act, 2002. The court has also denied statutory bail to Hussain in the matter.

"In view of the statutory provisions and the law discussed above, the transactions of Tahir Hussain, as detailed above, in a conspiracy to fraudulently withdraw money from the accounts of certain companies owned or controlled by him through bogus and malafide transactions with bogus entry operators on the strength of fake bills with him being the beneficiary and with intent putting it to use towards riots, then accused Tahir Hussain would be set to be deriving or obtaining property as a result of criminal activity associated with/relatable to scheduled offence as the proceeds of crime and will be guilty of money laundering," the court said in an order passed yesterday.

According to the Enforcement Directorate, Hussain "hatched a conspiracy with his associates to fraudulently withdraw money" from the accounts of certain companies — M/s. Show Effect Advertisement Pvt. Ltd. (SEAPL), M/s. Essence Cellcom Pvt. Ltd. (ECPL) and M/s. Essence Global Services Pvt. Ltd. (EGSPL), "owned and controlled" by him "through bogus and malafide transactions with bogus entry operator on the strength of fake bills". The ED's case is that he was the ultimate beneficiary of laundered money and used it during the riots in North- East Delhi in February 2020.

The court said ED's complaint "makes out a case" of Hussain working in conspiracy with Amit Gupta in generating proceeds of crime which was then put to use by the former for the "purpose of riots". It noted that Gupta was granted pardon on February 19.

"The contention of the Ld. Counsel for accused that if one accused person is granted pardon, then there can be no criminal conspiracy since accused cannot conspire with himself, is an incorrect proposition. What the law requires for a conspiracy is an involvement of two or more persons. The granting of pardon to one, on his statement and the stand of the prosecution, does not detract from the fact that they were accused in this matter for the offence of money laundering," the court said.

It further said the statements of witnesses and even the accused recorded under Section 50 of PMLA are admissible in law. "The statements have to be taken at their face value for what it contains," the judge said.

Perusing the contents of the complaint, accompanying documents and statements of witnesses, the court prima facie observed that Hussain, while acting in conspiracy, engaged in the offence of money laundering. 

The proceeds of crime generated in the conspiracy was put to use for riots, the judge added.

"In view of the above discussion, I am of the view that there is sufficient material on record, prima facie, creating grave suspicion against the accused for framing charge against him and to proceed further with the trial of the case," the court said.

The PMLA case was registered on the basis of the three FIRs lodged in relation to the riots  - FIR No. 59/2020, FIR No. 65/2020 and FIR No. 88/2020.

The matter has now been listed for November 14 for formal framing of charges. The Court had taken cognizance of the matter in 2020. 

Title: State Vs. Tahir Hussain