2020 Riots: HC Asks ED to File Submissions Backing Claim of Tahir Hussain's Plea for Nixing PMLA Case Not Maintainable

The Delhi High Court on Monday asked the Enforcement Directorate to make written submissions to back its contention that former AAP leader Tahir Hussain’s plea seeking quashing of a money laundering case against him in connection with the 2020 northeast Delhi riots was not maintainable.

Justice Swarana Kanta Sharma passed the order after ED’s counsel questioned the maintainability of the ex-AAP councillor’s petition.

The high court listed the matter for hearing in September and granted liberty to Hussain’s counsel to file a rejoinder to ED’s reply. The high court also called for the trial court record by the next date of hearing.

Hussain, represented by senior advocate Maneka Guruswamy, has sought quashing of the Enforcement Case Information Report (ECIR), ED’s version of an FIR, lodged in March 2020 under sections 3 (offence of money laundering) and 4 (punishment for the offence on money laundering) of the Prevention of Money Laundering Act (PMLA).

ED’s counsel claimed that an identical petition was earlier filed by the accused which has already been dismissed by the high court.

However, the contention was opposed by Hussain’s counsel who said the previous petition was a revision plea against an order for framing of charges while the present one is for seeking a direction to quash the ED’s complaint.

On November 24, 2022, the high court rejected Hussain’s plea challenging the framing of money laundering charges against him in the case.

It had held there was no infirmity in the trial court order which said a prima facie case was made out against Hussain under the PMLA.

Hussain’s earlier petition had challenged the trial court’s November 3, 2022 order by which charges for the alleged offence under Sections 3 and 4 of the PMLA were framed against him.

According to the ED’s complaint, Hussain “fraudulently” withdrew money from the bank accounts of companies owned or controlled by him through bogus entry operators on the strength of fake bills.

Hussain was the ultimate beneficiary of the laundered money and the funds obtained through criminal conspiracy were put to use during the riots in February 2020, the ED complaint alleged.

Delhi Police have registered three FIRs against Hussain and others under various sections of the Indian Penal Code in connection with the riots. Based on the FIRs, inquiries were initiated and the ED registered an ECIR against him on March 9, 2020.