The Enforcement Directorate (ED) has appealed to the Delhi High Court after a trial court declined to acknowledge its supplementary chargesheet in the Delhi Waqf Board money laundering case. AAP MLA Amanatullah Khan was released due to absence of necessary sanctions for prosecution under PMLA. The High Court is set for a detailed hearing in January 2024.
New Delhi: The Enforcement Directorate (ED) has moved the Delhi High Court, challenging a trial court’s refusal to take cognizance of its supplementary chargesheet in the Delhi Waqf Board money laundering case. The trial court’s decision also led to the immediate release of Aam Aadmi Party (AAP) MLA Amanatullah Khan from judicial custody, citing the absence of necessary sanctions to prosecute under the Prevention of Money Laundering Act (PMLA).
On November 14, the trial court declined to proceed with the supplementary chargesheet filed by the ED, which alleged that Khan laundered funds generated through corruption within the Delhi Waqf Board. The court acknowledged that “there was sufficient evidence to proceed against Khan” but emphasized that the prosecution lacked the requisite sanctions to move forward.
The ED argues that the trial court’s approach undermined “the rigorous requirements of PMLA, particularly Section 45,” which outlines stringent conditions for granting bail and other procedural safeguards. According to the agency, the trial court erred in directly releasing Khan without scrutinizing the merits of the charges or addressing the issue of sanctions during the bail hearing process.
During a hearing in the Delhi High Court, the bench pressed the ED to clarify its position on the predicate offense and the sanctioning process under PMLA. While the High Court refused to issue notices at this stage, it has scheduled a detailed hearing for January 13, 2024. The court has also directed the ED to submit records of various trial court orders related to the chargesheet.
The case dates back to Khan’s tenure as chairman of the Delhi Waqf Board, during which he is alleged to have facilitated illegal recruitments in violation of government norms. The ED claims that these activities generated significant illicit proceeds, which were then used to purchase immovable assets in the names of Khan’s associates.
The ED filed its supplementary chargesheet on October 29, detailing how Khan allegedly funneled proceeds of corruption into money laundering activities. However, the lack of prosecutorial sanctions led to the trial court’s decision to release Khan—a move now being challenged by the ED.
This high-profile case highlights the importance of procedural compliance in money laundering investigations under PMLA and sets the stage for a crucial hearing in January 2024.
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