Delhi Court Grants Bail To Former Rajya Sabha MP KD Singh In Money Laundering Case

A Delhi Court on Tuesday granted bail to former Rajya Sabha MP, belonging to the Trinamool Congress (TMC), in a money laundering case registered by Enforcement Directorate against him.

Special CBI Judge Geetanjali Goel granted bail to KD Singh subject to furnishing of personal bond in the sum of Rs. 5 lakhs with two sureties of like amount.

A case was registered against Singh by ED under Prevention of Money Laundering Act. Singh was thereafter arrested by ED on 12th January 2021, was remanded to ED's custody and was then sent to judicial custody.

Various FIRs were registered in Kolkata alleging that Singh along with other persons entered into criminal conspiracy and in furtherance of it, cheated investors by fraudulently collecting money in the guise of agents with the false assurance of high return on maturity. These FIRs formed basis of ED's investigation in the case.

It was also alleged that Singh induced people to invest in various schemes but after the maturity, did not return the amount, thereby committing cheating. Moreover, it was then revealed that around Rs.444.67 crores approximately were raised from investors from different States in India by issuing redeemable preference shares by Alchemist Holdings Limited from 2005 onwards by luring them with high rate of interest on their investments after maturity.

It was also alleged that the funds so raised from the investors were not used for the intended purposes and were diverted/ siphoned off into the Group companies of Alchemist Group.

ED while issuing provisional attachment order in 2019 attached various properties Alchemist Group, association of which was vehemently denied by Singh.

The bail application was filed by Singh under sec. 439 of CrPC averring that is was a "victim of grave persecution and harassment" and that the actions of ED were violative of his fundamental right to life and liberty as guaranteed by Art. 21 of the Constitution.

It was also submitted that he was neither a director nor a shareholder nor any other office bearer of the said companies which were the subject matter of the investigation Alchemist Infra Realty Ltd, Alchemist Township India Ltd. and Alchemist Holdings Ltd.

Noting that Singh has been in custody since 12th January 2021, the Court observed thus:

"In the instant case, the applicant/ accused is in custody since 12.01.2021. Nothing has been placed on record to show that the applicant/ accused is a flight risk nor it was so specifically argued on behalf of ED. The applicant/ accused is a former Parliamentarian."

Moreover, the Court also observed that Singh had appeared before ED several times and his statements have also been recorded by ED. Furthermore, the Court also went ahead to observe that the correctness of the allegations as to whether Singh had received and laundered proceeds of crimes can only be looked into during the course of trial which is likely to take time.

"However, the complaint has already been filed and the statement of the witnesses under Section 50 PMLA has already been recorded. Further necessary conditions can be put in this regard and any such effort by the applicant/ accused may lead to cancellation of bail. The applicant/ accused is aged about 61 years and has deep roots in the society. In view of the above discussion and considering the facts and circumstances of the case, the applicant/ accused Kanwar Deep Singh is admitted to bail on furnishing personal bond in the sum of Rs.5 lakhs with two sureties of the like amount.." the Court observed while granting bail to Singh.

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