The Delhi High Court on Wednesday granted bail to three members of the Popular Front of India (PFI)’s Delhi unit, accused in a money laundering case tied to the collection of funds for alleged illegal activities. Justice Jasmeet Singh ruled in favor of the accused, Parvez Ahmed, Mohd Ilyas, and Abdul Muqeet, after observing that the prerequisites for a money laundering charge under the Prevention of Money Laundering Act (PMLA) were not met.
During the proceedings, it was argued by the petitioners’ counsel that the funds were collected before any criminal activity, specifically the Delhi riots, had occurred. According to Justice Singh, “The proceeds of crime must be generated as a result of criminal activity. The collection of funds in an illegal way to commit a scheduled offense in the future does not constitute money laundering under PMLA.”
The Enforcement Directorate (ED) had initiated the case in September 2022 following an FIR by the National Investigation Agency (NIA) that charged members of the PFI with violations under the Indian Penal Code (IPC) and the Unlawful Activities (Prevention) Act. The ED contended that the accused played crucial roles in fundraising activities intended to finance disruptive activities across India, including anti-CAA protests purportedly intended to disturb communal harmony and incite violence.
However, Justice Singh noted that the concept of “proceeds of crime” as argued by the ED was misplaced, stating that such proceeds must directly result from a clearly identifiable criminal activity, which the agency failed to establish. The court criticized the premature actions of the ED, suggesting they had “put the cart before the horse.”
In detailing the court’s decision, Justice Singh highlighted that the accused had already undergone over two years of incarceration and that the likelihood of the trial concluding in the near future was slim. He pointed out the logistical challenges posed by the extensive list of witnesses and voluminous evidence yet to be processed.
Acknowledging the stringent bail conditions typically associated with such cases, Justice Singh emphasized the need to balance legal proceedings with respect for the rights guaranteed under Article 21 of the Constitution, which protects against arbitrary detention.
The court has directed the released individuals to post a personal bond of Rs 50,000 each, with a surety of a similar amount, and mandated their continued cooperation with the ongoing investigation. They are also restricted from leaving the country without proper authorization.
