New Delhi [India], December 25 : A Delhi court has declined to take cognizance of a charge sheet/prosecution complaint filed by the Enforcement Directorate (ED) against Adhunik Corporation Limited and its two directors in a coal scam case.
The Special Judge Arun Bhardwaj in an order passed on December 23, opined that, based on the material presented, no offence of money laundering under Section 3 of the PMLA, 2002 has been established. Therefore, there is insufficient evidence to take cognizance of the money laundering offence and proceed with the complaint.
The court also observed that the attempt to acquire proceeds of crime or to anticipate undue benefits does not constitute money laundering.
According to the ED, the family members and group companies of the accused had invested Rs 50.37 crore in ACL, disguised as share capital, anticipating an undue benefit from the allocation of a coal block. This investment was made, the ED claimed, in expectation of the criminal activity tied to the scheduled offence filed by the CBI.
However, the court highlighted that, according to the ED's statements, the anticipated benefits were yet to materialize. It emphasized that mere attempts to acquire proceeds of crime or the anticipation of such benefits could not be categorized as money laundering, as the proceeds of crime were non-existent at this stage.
The judge pointed out that the infusion of capital took place even before the alleged conspiracy in the predicate offence. Additionally, the court noted that no investment was made directly due to the coal block allocation, and the investments continued even after the de-allocation of the block became imminent.
The judge further emphasized that the family and group companies had already made part investments before the coal block allocation, and these investments could not be classified as proceeds of crime under the PMLA.
The court also referenced a previous Delhi High Court ruling, which clarified that coal block allocations alone could not be viewed as proceeds of crime.
The accused had previously been convicted in a related CBI case for conspiracy and cheating over the coal block allocation, but their four-year prison sentences were stayed by the Delhi High Court after they appealed the verdict.