Supreme Court Issues Notice To ED In Abbas Ansari's Bail Plea In Money Laundering Case

The Supreme Court today (August 14) issued notice in the special leave petition filed by Abbas Ansari, MLA from Mau from Suheldev Bharatiya Samaj Party, against the order of the Allahabad High Court denying bail to him in the Prevention of Money Laundering Act, 2002 case.

On May 9, the Allahabad High Court denied bail to Abbas, categorically noting that it could not persuade itself to form a prima facie satisfaction as per Section 45 of the PMLA, at this stage, that the applicant is not guilty or may not commit an offence on bail. Subsequently, on May 15, a bench of Justices Surya Kant and KV Viswanathan allowed Abbas to attend a private prayer service held in the memory of his late father late gangster-politician Mukhtar Ansari, on June 11 and 12. 

Today, before a bench of Justices M.M. Sundresh and Sandeep Mehta, senior advocate Kapil Sibal (counsel for Ansari) at the outset submitted: "If you are an Ansari, you have to be in Jail. That's what the respondents say."

While issuing orders, the court orally remarked: "Sometimes, it is safe to be inside [jai]."

Background

As per the Enforcement Directorate's case, Ansari used the two firms (M/s Vikas Construction and M/s Aaghaaz) to launder money. He was booked under Sections 3 and 4 of the PMLA and was arrested in November 2022. It is the case of the ED that a partnership firm named M/s. Vikas Construction was the prime vehicle Ansari used to commit scheduled offences and generate the proceeds of crime.

The firm allegedly usurped government land in districts Mau and Ghazipur by resorting to forgery, cheating, and criminal trespass. The firm was used to acquire public contracts, so whenever the bid was made by the instant firm, the contracts invariably went to the said firm. The said firm used to procure loans from the public banks to construct go-downs, which then were given as rent to the Food Corporation of India and the Uttar Pradesh State Ware Housing Corporation, and the rent received from them was to the tune of several crores.

Additionally, a subsidy was also received from NABARD to the tune of more than 67 lakhs. The amount generated from the rent received was routed not only into the account of M/s. Vikas Construction, but also in the other family firm, M/s. Aaghaaz and by creating layers thereafter, the money was withdrawn both by cash and deposited in the loan account of M/s Vikas Construction to procure immovable properties at such rates, which were substantially much lower than the market price.

Against this backdrop, the ED alleged that several high-value transactions were credited and debited into and from the applicant's account, which the latter could not explain.

The ED also alleged that the major shareholders in the firm M/s. Vikas Constructions is Ms Afshar Ansari (mother of the applicant) and Mr Atif Raza (maternal uncle-Mamaji), amongst others.

Case details: Abbas Ansari v. Directorate of Enforcement, Allahabad, SLP(Crl) No. 10598/2024 

Next date of hearing: November 17

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