[PMLA] Sanjay Raut arrested for no reason; ED adopting pick and choose strategy in arresting accused: Special Court

The Enforcement Directorate is adopting a pick and choose strategy when arresting people in money laundering cases and Raja Sabha MP and leader of Shiv Sena's Uddhav Thackeray faction, Sanjay Raut was arrested for no reason, a special court said on Wednesday [Sanjay Rajaram Raut vs Directorate of Enforcement].The illegal arrest and detention of Sanjay Raut and co-accused Pravin Raut was an outcome of the pick and choose strategy adopted by the ED, Special judge MG Deshpande said."From the records materials and the detailed discussion made above, it is clear how Pravin Raut (A3) is arrested for a pure civil litigation, whereas Sanjay Raut (A5) for no reason. This truth is glaring. The Court is under legal obligation and duty to find out truth even at the stage of bail," the Court said.The judge further observed that the agency had not arrested the main accused in the case including government officials. "Rakesh and Sarang (A1 and A2) for their misdeeds and being the main accused persons admitted the same by affidvit of Sarang Wadhawan, were not arrested by the ED but they have been left scot free. But at the same time Pravin Raut(A3) was arrested for civil dispute, whereas Sanjay Raut(A5) for no reason. All this clearly indicates disparity, pick and choose attitude of the ED and the Court cannot put premium on the same but legally bound to make parity," the Court stated.The observations form part of the order granting bail to Sanjay Raut and Praveen Raut in the money laundering case against them under the Prevention of Money Laundering Act (PMLA). .After hearing both sides and going through all written submission, the Court reached a conclusion that the complaint filed by ED indicated a long civil litigation which had delayed a redevelopment project and the cause for the same were the developers. .1. Simply labeling pure civil disputes as “money laundering” or “an Economic Offence” cannot automatically grant them such status and ultimately drag an innocent person in a miserable situation in the guise of arrest under Sec.19 and stringent twin conditions of Sec.45(1)(i)(ii) of the PML Act. "The Court has to do what is right irrespective of who is before it," it added..2. It was clear that Pravin Raut was arrested for a pure civil litigation whereas Sanjay Raut was arrested for no reason."From the records materials and the detailed discussion made above, it is clear how Pravin Raut (A3) is arrested for a pure civil litigation, whereas Sanjay Raut (A5) for no reason. This truth is glaring. The Court is under legal obligation and duty to find out truth even at the stage of bail," the Court said..3. If it accepted ED's and MHADA's contention and rejected the bail applications, it would amount to placing a premium on the agency's pick and choose strategies."If the Court still accepts contention of ED and MHADA and further rejects the bail applications of Pravin Raut (A3) and Sanjay Raut(A5) that will amount putting premium on such pick and choose strategies of the Agency. Certainly in that event any common man, innocent and honest people, will loose faith and confidence which they have reposed in the judicial system as a temple of justice," the Court stated..Therefore, the Court held that both accused were arrested illegally and were entitled to parity in view of disparity created by ED by not arresting the main accused and the government officials responsible for their misdeeds..The money laundering case being investigated by the Enforcement Directorate (ED) is in relation to the redevelopment of a chawl project in a northern suburb of Mumbai.Raut was summoned for questioning in the re-development of Patra chawl and related transactions involving his wife and ‘associates’. He was arrested on July 31 and after spending 8 days in ED’s custody, Raut was remanded to judicial custody.He moved for bail on September 7 claiming that ED’s case against him was filed to crush the opposition faced by the ruling party..[Read Order]