Supreme Court Dismisses ED's Challenge To HC Order Granting Bail To Ex-Punjab CM Charanjit Singh Channi's Nephew

The Supreme Court (on February 05) confirmed the Punjab and Haryana High Court's order allowing the bail to former Punjab Chief Minister Charanjit Singh Channi's nephew Bhupinder Singh. Singh had moved the bail application before the High Court in a case under the Prevention of Money Laundering Act arising out of an alleged illegal sand mining case.

Notwithstanding, the Division Bench of Justices Sanjiv Khanna and Dipankar Datta also expressed some reservations with the impugned order passed without the Enforcement Directorate's reply.

“Though we have some reservations with the impugned order, as it appears that the order was passed without giving opportunity to the petitioner – Enforcement Directorate to file a reply, we are not inclined to interfere with the impugned order. Hence, the special leave petitions are dismissed.”

Before parting, the Top Court clarified that ED would be allowed to take steps in case any predicate offence (s) is registered.

“However, we clarify that in case any predicate offence(s) is revived/registered, it will be open to the petitioner - Enforcement Directorate to take steps and proceed in accordance with law.”

This matter essentially stems from a 2018 FIR Lodged in 2018 at Rahon in which the name of Honey's business partner Kudratdeep was mentioned, however, his name was subsequently removed and did not appear in the police challan copy.

As per the ED's case, Kudratdeep Singh used to do sand mining illegally, and Bhupinder Singh used to manage the daily affairs of the said sand mine. The latter used to receive all the payments through cash.

It was also alleged that all the money collected from the sand mine was illegal as more mining was done than the prescribed limit, and forged weight slips were made to circumvent the prescribed limit.

However, before the High Court, Bhupinder Singh argued that the ED's complaint was illegal and an abuse of the law. It was submitted that there was no predicate offence of which the present respondent and Kudratdeep Singh are accused.

The Court held that the petitioner qualified for the triple test under Section 45 of the Act, which lays down conditions for the grant of bail. Reasoning this, the Court, inter-alia, observed that there is no direct allegation against the present respondent that he was looking into Kudratdeep Singh's finances. Further, the Court recorded that it has nothing to presume adverse to his conduct.

Besides, it was also pointed out that though the FIR was registered in 2018, the complaint was filed by the ED after four years.

“It is well settled principles of law that when the investigation is complete and charge sheet is filed in the Court, conclusion of trial is likely to take a long time, a person/accused like the present petitioner, who is aged about 36 years old, can be released on bail…” the High Court recorded in its order while granting bail.

Case Title: ENFORCEMENT OF DIRECTORATE vs. BHUPINDER SINGH @ HONEY., Diary No.- 33730 - 2022

Click here to read/ download the order