RJD MP Amarendra Dhari Singh moves Delhi HC against ED remand in fertiliser scam case

On Wednesday, RJD MP Amarendra Dhari Singh moved the Delhi High Court challenging his 10-day Enforcement Directorate remand in the fertilizer scam case. Arrested on June 2, he has been booked by the ED under sections of the Prevention of Money Laundering Act in his capacity as the senior vice president of Jyoti Trading Corporation. A day later, Special Judge Dig Vinay Singh had dismissed the plea to place him under house arrest saying that his custody was necessary for "fair investigation". During the hearing, the ED's counsel told the court that the accused's interrogation was vital to unearth the larger conspiracy.

In its 10-page order, the court noted, “Cases under PMLA are indeed serious economic offences and in case an accused does not cooperate and evades giving replies, it gives rise to a reasonable apprehension that fair investigation cannot be conducted and the evidence can be tampered with, justifying arrest". At the same time, it allowed Singh to keep his medicines, necessary medical equipment, spectacles, access to home-cooked food and water. Calling upon the central agency to ensure that COVID-19 protocols are followed while the accused is in custody, Special Judge Dig Vinay Singh directed that the RJP MP should be examined every 48 hours. 

RJD MP's alleged involvement in the fertiliser scam

The Indian Farmers Fertiliser Co-operative Limited (IFFCO) is a multi-state farmers' cooperative while Indian Potash Limited (IPL) is its company involved in supplying fertilisers for which the government provides subsidies. The CBI registered an FIR based on two complaints forwarded by the Ministry of Chemicals and Fertilisers carrying identical allegations from MP Nishikant Dubey and Sudish Tripathi of Bareilly. It stated that IFFCO managing director US Awasthi and IPL managing director PS Gahlaut imported fertilisers at highly inflated rates from 2007 to 2014 as part of a "criminal conspiracy" to claim higher subsidies.

They have also been accused of receiving illegal commissions worth over Rs.685 crore, reportedly siphoned off outside India. The agency mentioned in the FIR, "They allegedly siphoned off the commission through a complex web of fake commercial transactions through multiple companies registered outside India (beneficially owned by the accused persons) to camouflage the fraudulent transactions as genuine". It has also alleged the involvement of AgustaWestland case accused and chartered accountant Rajiv Saxena, Jyoti Trading Corporation and Rare Earth Group owner Pankaj Jain, his brother Sanjay Jain and RJD parliamentarian AD Singh in this scam.