[Delhi Riots] Delhi High Court refuses to quash order framing money laundering charges against ex-AAP councillor Tahir Hussain

The Delhi High Court on Thursday refused to quash a trial court order framing charges against former Aam Aadmi Party (AAP) councillor Tahir Hussain in a money laundering case related to the North-east Delhi Riots of 2020 [Tahir Hussain v Assistant Director Enforcement Directorate]. .Justice Anu Malhotra pronounced the order on Thursday after having reserved it on November 16. .The court said that there is no infirmity in the trial court order and Hussain, prima facie, acted in conspiracy and engaged in money laundering with proceeds of crime having been put to use for riots. Justice Malhotra rejected Hussain's argument that charges could not be framed against him because the investigation in the case is yet to complete. "...explanation (ii) to Section 44(1) of the Prevention of Money Laundering Act (PMLA), 2002 clearly provides that the complaint shall be deemed to include any subsequent complaint in respect of further investigation that may be conducted to bring any further evidence or a documentary against any accused person involved in respect of the offence, for which complaint has already been filed whether named in the original complaint or not," the court said. The judge did not find any any merit in the argument that what Hussain was allegedly involved in can, at most, be considered a case of GST violation and therefore punishable under enactment dealing with GST violation. "Petition and the accompanying applications are thus declined," the Court ordered. .The Directorate of Enforcement (ED) alleged that Hussain "hatched a conspiracy with his associates to fraudulently withdraw money" from the accounts of certain companies owned and controlled by him through bogus and mala fide transactions, and that this money was put to use during the riots..Representing the ED, Advocate Zoheb Hossain had argued that the allegations against Hussain is that he funded the riots. Stating that it was a fit case to proceed for trial, he urged the Court to dismiss Hussain's plea challenging the order of framing charges..However, Advocate Navin Malhotra, appearing for Hussain, stated that at best, the allegations against him constitute a violation of the Goods and Services Tax (GST) Act and not the Prevention of Money Laundering Act (PMLA)..Additional Sessions Judge (ASJ) Amitabh Rawat of the Karkardooma Courts had framed charges against Hussain under Section 3 of the PMLA.After perusing the ED complaint, witness statements and accompanying documents, the sessions judge had said that Hussain had prima facie engaged in money laundering..Advocate Naveen Malhotra, Ritvik Malhotra and Nilansh Malhotra appeared for Hussain. ED was represented through advocates Zoheb Hossain, Vivek Gurnani and Pankaj Kumar Khatri. .[Read Order]