CA Rajiv Aggarwal granted bail by Delhi Court in money laundering case registered by ED

Chartered Account Rajiv Aggarwal, who was arrested in September 2021 in connection with a money laundering case of Rs 7,979.30 crores has been granted bail by the Special Court, CBI, Rouse Avenue in New Delhi on Tuesday. The money laundering case is related to an alleged loan fraud that was registered by the Enforcement Directorate in 2019. The matter was being heard by Special Judge Sanjay Garg who while granting bail observed that Aggarwal has "already spent about 95 days in custody". 

The offence against the applicant is punishable with imprisonment of up to seven years. In addition, he stated that since the further investigation in the case is underway,  there is no likelihood of commencement of trial in near future. "The applicant can not be left to languish in custody for an indefinite period," the Judge stated 

"Though it is alleged against the applicant that the money laundered by him is of huge magnitude but it needs little emphasis that the case set up by the prosecution against the applicant can only be tested during the course of trial. The case is primarily based on documentary evidence and voluminous record has already been seized by the investigating agency. The applicant has a permanent abode in India. It is a matter of record that he had joined an investigation on numerous occasions even prior to his arrest. Considering the same, it does not seem that there is any likelihood of his fleeing from justice," the Court said

Rajiv Aggarwal's counsels' arguments 

Appearing for Rajiv Aggarwal, his counsels Vijay Aggarwal and Advocate Ayush Jindal argued before the Court that the applicant was arrested even though he joined the investigation on several occasions since 2019. They further argued that the Enforcement Directorate (ED) has taken a stand since the year 2019 that further investigation is still pending, despite two supplementary complaints in the present case having been filed. 

Advocate Aggarwal in his arguments also asserted that "several companies that have been made accused in the present case are based in the foreign jurisdiction and that the commencement of trial would take considerable time". He further added that any diary or loose sheets or emails seized by the central agency is "not admissible in evidence as the same are not books of accounts in terms of Section 34 of Indian Evidence Act, and grant of bail shall also enable the applicant/accused to better prepare for the trial".

The Court had earlier opined that Section 45 of the Prevention of Money Laundering Act (PMLA) is in operation while adjudicating upon the bail application of a co-accused in the same matter in view of the judgment passed by Supreme Court in the case of Satender Kumar Antil. Even so, the Supreme Court on December 16, 2021, gave a clarification the said judgement stating that its intention while passing the said judgment was not to restrict the scope of bail but was rather to enlarge it and further clarified that Section 45 has been inadvertently mentioned in the Category 'C' where the Court had laid down provisions containing stringent provisions for bail. 

With ANI inputs