In a recent development, Hyderabad entrepreneur Arun Ramchandra Pillai has moved the Delhi High Court, contesting his apprehension and subsequent detention in a money laundering case linked to the purported Delhi excise policy irregularities.Pillai alleges the use of harsh interrogation techniques, commonly referred to as “third-degree” methods, in a bid to extract information.
“Third degree” practices allude to severe interrogation tactics employed by law enforcement during suspect questioning.
Justice Swarana Kanta Sharma, on Friday, 20 October, has called for the Enforcement Directorate’s (ED) response regarding the admissibility of Pillai’s plea.
Advocate Nitesh Rana, representing the petitioner, contended that the Enforcement Directorate’s arrest order on 6 March, and subsequent custody decisions by the trial court, were in violation of the provisions set forth in the Prevention of Money Laundering Act (PMLA).
Pillai’s Petition
In his plea, Pillai asserts that neither oral nor written grounds for his arrest, mandated by Section 19(1) of the PMLA, were ever furnished, thereby infringing upon his constitutional rights.
Furthermore, it is contended that the remand orders failed to document any discernment of whether the ED possessed substantive evidence to “reasonably believe” that Pillai was implicated in an offense under the PMLA.
“The Directorate of Enforcement, acting in a retaliatory fashion and driven by a pursuit of witches, employed coercive measures to elicit information and resorted to third-degree tactics on the petitioner and the other accused,” stated the petition.
The ED, it is alleged, acted unlawfully due to the Contested Arrest Order and Remand Orders, which, in themselves, serve as grounds for nullification, the petition insisted.
The ED’s representative argued that the plea lacked legal standing.
Next Hearing Set for 3 November
The case has been slated for further deliberation on 3 November, when Pillai’s request for bail will also be reviewed.
Earlier this month, Pillai sought release on bail, asserting a complete absence of evidence necessitating his incarceration.
On 8 June, a Delhi trial court denied Pillai’s bail plea, stating that his involvement was more substantial compared to some other detainees, and that the ED’s case appeared legitimate at a prima facie level.
‘Pillai’s Ostensible Links to the Scam’
According to the trial court’s evaluation, Pillai not only participated in the “conspiracy” but was also evidently connected to various transactions involving the gains, including their concealment, acquisition, possession, or use, as well as their presentation as unblemished assets.
The ED, in its charge sheet pertaining to the case, has alleged that Pillai maintained a close association with BRS MLC K Kavitha.The money laundering inquiry initiated by the ED originated from a Central Bureau of Investigation (CBI) FIR.
As per both the CBI and the ED, discrepancies arose during the modification of the Delhi Excise Policy for 2021-22 (now defunct), and unwarranted advantages were extended to license holders.
The Delhi government enforced the excise policy on 17 November 2021 but ultimately revoked it at the close of September 2022 in light of corruption allegations.
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