I-PAC director Vinesh Chandel's lawyer argued against his ED arrest, stating the case lacks a PMLA scheduled offence. Despite this, a Delhi court sent Chandel to 10-day ED custody. The agency alleges financial irregularities and hawala deals.
Defence Argues Arrest 'Without Jurisdiction'
Senior Advocate Vikas Pahwa, appearing for I-PAC director Vinesh Chandel, strongly opposed the Enforcement Directorate's (ED) action, arguing that the registration of a fresh ECIR is legally untenable and lacks any substantive basis. He submitted that even if the allegations are accepted in entirety, they pertain only to receipt of certain payments in cash and cheque, alleged GST irregularities, and loans from entities that are not NBFCs issues that may at best invite scrutiny under taxation or regulatory laws, but do not constitute a scheduled offence under the Prevention of Money Laundering Act (PMLA).
Pahwa further argued that the FIR invoking Sections 420, 120B and 477A of the IPC is unsustainable, as there is no complainant alleging cheating and the essential ingredients of these offences are not made out. He also pointed out that Section 477A IPC is not a scheduled offence under the PMLA, emphasising that the existence of a predicate offence is fundamental for invoking the anti-money laundering law. In its absence, he contended, the ECIR registration and subsequent arrest are without jurisdiction.
The senior counsel told the court that Chandel has been cooperating with the authorities and had complied with earlier summons in coal-related investigations, where prosecution complaints have already been filed. He maintained that Chandel is neither an accused in those cases nor linked to any scheduled offence. The arrest under Section 19 of the PMLA, he argued, is unwarranted, disproportionate, and fails to meet the statutory requirement of necessity. The arguments on behalf of the accused continued till around 2 am.
I-PAC Director Remanded to 10-Day ED Custody
Meanwhile, a Delhi court has sent Chandel to 10 days' ED custody in connection with the case. He was produced late at night, and proceedings continued into the early hours of April 14 before the remand was granted.
Chandel was arrested by the ED's Headquarters Investigation Unit in Delhi on April 13 under the provisions of the PMLA. He is the founder, director and a 33% shareholder of Indian PAC Consulting Pvt. Ltd.
Probe Reveals Alleged Hawala Links, Bogus Invoices
The ED initiated its probe on the basis of an FIR registered by Delhi Police. According to the agency, the investigation has revealed multiple instances of alleged financial irregularities, including receipt of accounted and unaccounted funds, unsecured loans without business credentials, issuance of bogus bills and invoices, routing of funds through third parties, and movement of cash via domestic and international hawala channels.
Officials said the company is suspected to have laundered proceeds of crime amounting to several crores, with around ₹50 crore detected so far. Searches conducted on April 2 at 11 locations across Hyderabad, Delhi, Mumbai, Bengaluru, Vijayawada and Ranchi led to the seizure of incriminating material.
Case Sparks Political Row, Other Directors Move HC
The case has also triggered a political confrontation between the Trinamool Congress (TMC) and the Bharatiya Janata Party (BJP), and has reached the Supreme Court. Meanwhile, the Delhi High Court has heard pleas filed by I-PAC directors Rishi Raj Singh and Pratik Jain seeking quashing of ED summons in the matter. The next hearing is scheduled for April 17. (ANI)
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