Delhi Court grants bail to Businessman Sanjay Sherpuria in money laundering case

The Patiala House Court has granted regular bail to Businessman Sanjay Prakash Rai, alias Sanjay Sherpuria, in a money laundering case. Additional Sessions Judge Chander Jit Singh in an order passed last week stated that the accused has been able to cross the bar of Section 45 of PMLA as well as the triple test and accordingly, he is admitted on bail subject to furnishing PB/SB in the sum of Rs 1,50,000 with two sureties of equal amount.

The trial court also stated that in the present matter, no material has been produced to show or indicate that the accused is a flight risk or that the accused or his family member have attempted to contact any witness, which may be a parameter to evaluate whether the accused shall influence the witness or not. There has to be some material on record to at least indicate such a tendency in the accused. In the absence of any such material on record, it shall be concluded that the accused has been able to satisfy the triple test as well, as the trial court observed.

Appearing for Sanjay Rai, Advocate Nitesh Rana and Advocate Deepak Nagar submitted that it is beyond the comprehension of any law as to how the ED has the competent jurisdiction to investigate the offence of money laundering that allegedly occurred in UP as the FIR, which is a is a Schedule Offence registered in Lucknow. "There is no evidence that suggests that any part of the proceeds of crime has travelled to Delhi," Rana said.

Earlier, Sanjay Sherpuria approached the Delhi High Court and sought the quashing of the chargesheet, stating that by mentioning *the name of the Prime Minister's Office*, the Central Minister or connections with bureaucrats and other big names, the respondent (ED) tried to create the castle in the air and intentionally misled the court and was induced to take cognizance of frivolous facts. The plea moved by Advocate Deepak Nagar further stated that the present investigation in the impugned ECIR also amounts to 'Double Jeopardy' as the same cause of action is already being investigated by the respondent at Lucknow Zone.

It is submitted that the same cause of action and the same Proceeds of Crime are being investigated at two different places by the respondent for the offence of money laundering, such exercise by the respondent is a direct violation of Article 20 sub-clause (2) of the Constitution of India, 1949, the plea read. According to the plea, the Special Task Force from Vibhuti Khand Police Station, Lucknow, allegedly on the basis of certain purported intelligence information, arrested Sanjay Prakash Rai (petitioner) on April 25, 2023, from Kanpur Railway Station.

Thereafter, ED registered a case for the offence of money laundering under PMLA, 2002, under sections 3 & 4. The Respondent agency invoked the provision of section 19 and arrested the Petitioner/ Sanjay Prakash Rai on 24.05.2023. According to the ED's Prosecution Complaint, Sanjay Prakash Rai has received Rs 12 crore as proceeds of crime. Out of Rs 12 crore, Rs 6 crore was received in YREF from Dalmia Office Trust and Rs 6 crore in cash from Gaurav Dalmia.

ED further alleged that he also cheated Mohit Singh, MD, of Shipra Estate Ltd. for Rs. 1 crore in lieu of helping to get him good deals in the sale of lands in Lucknow; Rs. 1 crore from Naveen Kumar Malhotra by gaining his trust and influencing him by showing connections with the senior politicians, he could bring him favours and Rs 51,50,000 from Sunil Chand Goyal on false promise that he will help him in the business expansion. As per the allegations, Sanjay Prakash Rai claimed to have close links with senior politicians' bureaucrats and the Prime Minister and he accumulated a total of Rs 14.51 crore in proceeds of crime.