Embraer Aircraft deal: Delhi Court observes arresting of Singapore bizman not legal, grants interim bail

New Delhi [India], February 16 : The Rouse Avenue Court on Thursday observed that the arrest of the accused Dev Inder Bhalla, a Singapore-based businessman is not legal and granted interim bail in connection with a money laundering case linked to a UPA-era defence deal with aircraft manufacturer Embraer.
The matter pertains to the supply of 3 EMP -145 aircraft to the Government of India under DRDO. Allegations against Dev Inder Bhalla were that he made shell companies to launder money received as commission in the deal of aircraft.
Bhalla was arrested by the Enforcement Directorate at Netaji Subhash Chandra Bose International Airport Kolkata on February 13, 2023.
Special Judge Anil Antil at Rouse Avenue on Thursday said, "The agency was not legally empowered to arrest the accused without the indulgence of the Court, nor is it empowered now legally to seek his custody remand at this stage the case, knowing fully well the fact that the accused has been summoned by the Court on their own complaint and request after taking cognizance."
"The agency cannot act in a camouflaged manner to arrest the accused herein. On one hand, they are carrying summons to execute them for his appearance and at the same time they are also taking aid from the NBWs to justify their arrest," said the court.
The court further said, "The arrest and the custody remand of the accused are not justified in the given facts of the case. The application seeking custody remand is not maintainable and is hereby dismissed. The accused is entitled to be released forthwith."
Further, since the accused is present in the court, the summons have been issued to him for his appearance by the court, the next date of hearing fixed in the matter is February 24, 2023, and the prosecution is directed to provide a complete set of complaint and documents to the accused within two days from today, and since he was forwarded to face trial without arrest in terms of the complaint so filed by the agency I deem it appropriate and justified to release him on interim bail till the next date of hearing of the case i.e. February 24, 2023, on his furnishing a personal bond in the sum of Rs. 1,00,000 with one surety of the like amount, the court ordered.
The accused Dev Inder Bhalla was represented by Advocates Aditya Singh Deshwal and Advocate Ridam Arora while Advocates Zohaib Hossain, Naveen Kumar Matta, and Shailesh N Pathak appeared for Enforcement Directorate in the matter.
Counsel defending Bhalla submitted before the Court that the arrest of the accused is illegal at the first place in the light of section 19 Prevention of Money Laundering Act.
According to the ED on the basis of a complaint, an ECIR was filed against the 11
accused persons including accused Dev Inder Bhalla, Director of M/s Interdev Aviation Services Pvt Ltd, Singapore under Section 44 of PMLA, 2002 for the commission of offence u/s 3/70 and punishable u/s 4 of PMLA, 2002.
It was alleged that reference was received by CBI with regard to the allegations that M/s Embraer is being investigated by US and Brazil authorities regarding the alleged employment of an agent for facilitating the contract for the Airborne Early Warning and Control (AEW&C) Project with CABS/DRDO for procurement of 3 fully modified EMB-145 aircraft.
During inquiries, it was revealed that M/s Embraer, Brazil had engaged a middleman i.e. Vipin Khanna ( now deceased) NRI based in the United Kingdom to secure the contract for supplying EMB-145 aircraft to Indian Government as a platform for (AEW&C) Project.
It was revealed that M/s Embraer, Brazil an Aircraft Manufacturing Company had procured a contract for the supply of 3 EMP-145 Air Crafts to the Government of India under the agencies of the Defence Research and Development Organization; the Air Craft were to be used for the installation of AEW&S and a deal of USD 210 Million was signed on July 3, 2008, between the two parties that information regarding payment of bribe for procurement of this deal to some official of Defence Ministry through a middleman erupted in the public domain and the Indian government, took a note of it and ordered an inquiry following which CBI registered an aforesaid FIR.
The accused Dev Inder Bhalla, Director of M/s Interdev Aviation Services Pvt Ltd, placed in Singapore is also an accused in a money laundering case in M/s AgustaWestland.