Embraer Aircraft deal: Delhi HC dismisses ED plea challenging trial court order granting interim bail to Singapore businessman

New Delhi [India], October 18 : The Delhi High Court has dismissed the Enforcement Directorate (ED) plea challenging the trial court order that granted interim bail to Dev Inder Bhalla, a Singapore-based businessman in connection with a Money laundering case linked to a defence deal with aircraft manufacturer Embraer.
The Rouse Avenue Court in an order passed in February 2023 declared that the custody remand of Dev Inder Bhalla, director of M/s Interdev Aviation Services Pvt. Ltd. was illegal and granted him interim bail.
Later the Enforcement Directorate moved Delhi High Court challenging the trial Court order which granted interim bail and denied remand to the accused.
The Delhi High Court Bench of Justice Amit Sharma in an order passed on October 17, 2023, stated that the trial Court has rightly rejected the application for remand of respondent/Dev Inder Bhalla on behalf of the department at this stage.
This Court has been informed that an application for regular bail has been filed by the present respondent which is pending before the Special Court. In view of the discussion, this Court finds no reason to interfere with the impugned order dated 16.02.2023, said Justice Amit Sharma.
Appearing for Dev Inder Bhalla, Advocates Aditya Singh Deshwal and Ridam Arora submitted that inadvertence or a mistake on the part of the investigating agency cannot be ground to curtail the liberty of an accused person.
It was submitted that even in the application seeking the issuance of non-bailable warrants filed by the department, nothing was placed on record to show that the summons issued by the department were ever served upon the present respondent.
It was argued that nothing was placed on record before the learned Special Court to demonstrate that the summons sent for the purpose of investigation were served and not complied with by the respondent intentionally.
The lawyer for Bhalla, also argued that the insistence of the department for seeking police custody of the respondent even after declining the same, by the learned Special Court, is not justified. It is pointed out that after being granted interim bail, the respondent has joined the investigation as and when called by the Investigating Officer.
During the course of the investigation, it was pointed out that the present respondent has been arrested by the department in another case and he is in judicial custody in the said case.
According to the ED, 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 Subahsh Chandra Bose International Airport Kolkata on February 13, 2023.
Special Judge Anil Antil at Rouse Avenue on February 16 stated that 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 camouflage 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 trial court.
The Trial Court further said that the arrest and the custody remand of the accused were 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.
According to the ED on the basis of a complaint, an ECIR was filed against the 11 accused persons including 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 & 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 & 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 the 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 & 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 03.07.2008 between the two parties information regarding the payment of bribes for procurement of this deal to some official of the Defence Ministry through a middleman erupted in 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.