Delhi Waqf Board money-laundering case: Court dismisses bail plea of three accused

New Delhi [India], February 23 : The Rouse Avenue Court on Thursday dismissed the bail applications of three accused in connection with the Delhi Waqf Board money laundering case.
This case pertains to the purchase of a property for Rs 36 crore in the Okhla area.
It is alleged by ED that the contents of the diaries recovered from accused Qausar Imam Siddiqui are true and the total transaction for the tainted property is worth Rs 36 crore, including the proceeds of crime of Rs 27 crore, allegedly generated by Amanatullah Khan, as a result of criminal activity related to the scheduled offence, which were used to purchase the properties in the name of benamidars accused Zeeshan Haider and accused Daud Nasir, in order to launder the same by projecting them as untainted properties.
The Court held that there is no reason to believe that the accused persons are not guilty of the offence of money laundering.
Special judge Rakesh Syal on Thursday dismissed the bail applications of Zeeshan Haider, Daud Nasir and Javed Imam Siddiqui after considering the facts of the case and material on record.
The court said, "There appears to be no reasonable grounds for believing that the applicants are not guilty of the offence under the Act or that they are not likely to commit any offence while on bail. Accordingly, all three bail applications are dismissed."
The court held that There is also force in the contention of the SPP for the ED that the applicant/accused persons have not been able to explain the difference in the amount of sale consideration of Rs. 13,40,00,000, as mentioned in the agreement for sale September 17, 2021, and the amount of sale consideration of Rs 36 crore, as mentioned in the advance receipt cum agreement to sell and purchase with regard to the same property (plot) measuring approx. 1200 sq. yds., situated at Zaidi Villa, T.T.I. Road, Jamia Nagar, Okhla, New Delhi.
They are not able to explain the source of funds, out of which payments for the said properties were made by accused Zeeshan Haider and Daud Nasir or the huge cash transactions which had taken place in respect of the said properties, the court said.
The court also noted that an investigation into the predicate offences under FIR lodged at Police Station ACB is pending.
The court also said that from the material brought on record, it appears that the entries in the diary recovered from the premises of accused Kausar.
Imam Siddiqui, pertaining to the sale of the plot in Tikona Park, Jamia Nagar has also been corroborated by bank account statements of Jawed Imam Siddiqui, Ayesha Quamar, etc., agreement for the sale of the property for consideration of Rs. 36 crores, recovered from the mobile phone of accused Zeeshan Haider and statements under section 50 of the Act of various accused persons.
Thus, the contention of the applicants/ accused persons that the entries in the diary, seized from the possession of accused Kausar Imam Siddiqui, cannot be read against the applicants is not tenable, the court held.
Enforcement Directorate (ED) was represented by Special Public Prosecutor (SPP) Manish Jain along with advocates Ishan Baisla and Snehal Sharda.
It is alleged by the ED that in his statement u/s 50 of the Act, accused Kausar Imam Siddiqui stated about knowing Amanatullah Khan and managing expenses, organising rallies, making the transport arrangements and other work on the instructions of Amanatullah Khan and his associates.
He also stated in the statement that his cousin accused Jawed Imam Siddiqui of selling the property in question to accused Zeeshan Haider, through him, at the behest of Amanatullah Khan, wherein it was decided that he would receive a total of Rs. 50-55 lac as commission.
He also stated about writing financial transactions in the white diary, maintained by him on the direction of Amanatullah Khan and Zeeshan Haider and various transactions by Amanatullah Khan and his associates regarding the sale of the property at Tikona Park, Jamia Nagar, Okhla. He also confirmed that the sale consideration of the property was Rs. 36 crore.
The counsel for Jawed Imam Siddiqui sought on the ground that there are no proceeds of crime generated through the scheduled offence, in the absence of which, there can be no link between the scheduled offence and the alleged transaction between the applicant and Zeeshan Haider and Daud Nasir.
He cannot be said to be having any "knowledge" of the source of funds involved in the transaction. Thus, the ingredients of Section 3 of the Act have not been met and he deserves to be enlarged on regular bail, the counsel argued.
It was argued on behalf of Zeeshan Haider that the IO did not take into account the fact that the accused persons have been granted bail on merits in the predicate offence.
He has cooperated with the investigation and complied with the summons issued by the agency multiple times. Even if allegations against him are presumed to be true, the same are beyond the scope of the predicate offence. No case has been made out with regard to any link between the proceeds of crime and the applicant.
The counsel argued that the agency has failed to establish how the alleged amount laundered is a "proceed of crime".
The alleged laundered amount has no nexus with the predicate offence. The entire case hinges upon the statements made by the approver, witnesses or co-accused under Section 50 of the Act. The prosecution complaint does not mention a single document which corroborates the statements, counsel argued.
It was argued on behalf of Daud Nasir that the entire proceedings qua him are devoid of merit, as no scheduled offence is made out against him.
"There are no proceeds of crime generated through the scheduled offence, in the absence of which there can be no link between the scheduled offence and the alleged transaction between him and other accused persons. He cannot be said to be having any "knowledge" of the source of funds involved in the alleged transaction," the counsel submitted.