Money-laundering case: ₹3.85 crore unaccounted income in Khaira’s accounts, ED tells HC

The central agency says ₹4.86 crore was deposited in Bholath MLA’s accounts in 12 years, but he showed only ₹99 lakh to the income tax department

The Enforcement Directorate (ED) has told the Punjab and Haryana high court that in 12-odd years, ₹4.86 crore were deposited in Bholath MLA Sukhpal Singh Khaira’s bank accounts but the declared income to the income tax department stood at ₹99 lakh.

Bholath MLA Sukhpal Singh Khaira.

It also said that during this period, ₹84 lakh was deposited in cash in Khaira’s accounts.

These claims have been made by the ED in response to a petition filed by Khaira against the central agency’s raids of March 9 on his properties and some persons associated with him in connection with a 2015 Fazilka drug smuggling case.

Khaira was elected to the state assembly in 2017 on a ticket of the Aam Aadmi Party (AAP). Two years ago, he quit AAP and formed Punjab Ekta Party (PEP).

The ED says Khaira declared to the income tax department for the period 2008-09 to 2019-20 an aggregate income of ₹99.07 lakh. However, total deposits in his five accounts, have tallied to ₹4.86 crore of which ₹84 lakh has been deposited in cash.

Deposits made by Khaira in his bank account are not commensurate with the income declared, ED says in its 81-page report to high court. The case has now been adjourned to April 1 after taking on record the ED’s affidavit.

The ED further claims that examination of accounts of Khaira and his family -- his wife Jatinder Kaur and son Mehtab Singh Khaira – have received ₹64 lakh from his son-in-law Inderveer Singh Johal, Simmer Khaira and a firm in which his son-in-law is a director.

Documents containing cash transactions in foreign currency and suspicious property documents and electronic devices were seized from the record from the premises of Khaira and his associates on March 9. Cash transaction worth ₹4.5 crore and suspicious transactions in foreign currency are of US dollar 1.19 lakh were found, it claims.

These unexplained cash transaction as well as property details recovered during the probe need to be explained by him, the ED says justifying why he was summoned by it on March 17.

It has asserted that plea is not maintenable as at this stage he has not been made as accused and there is also no violation of his fundamental and legal rights.

It further said that unlocking of phone does not violate his right in any manner and state has every right to collect such evidence as part of the criminal proceedings. “Money laundering is a standalone offence. A person who has not committed a scheduled offence could be prosecuted for an offence of money laundering and Enforcement Directorate won’t wait for prosecution to establish a scheduled offense,” it said adding that even if a person is acquitted in a scheduled offence he could still be prosecuted under money laundering law.

Quoting Punjab Police probe, it says one Gurdev Singh convicted by the trial court used to provide funds and vehicles to Khaira for his election campaign and would make logistics arrangements from the proceeds of crime generated from smuggling and dealing in heroin. Thereby implying that proceeds of crime were used to finance election of Khaira in return Khaira would provide protection to him, it claims.

Nine persons were convicted in October 2017 in the case by a trial court and sentenced them to imprisonment, ranging from three to 20 years, for trans-border heroin smuggling. The court had summoned Khaira as “additional accused” through same order. Two months later, Supreme Court had stayed the summons to him.

Khaira has moved the high court seeking quashing of the investigation launched by the ED under the Prevention of Money Laundering Act. He had also sought quashing of the ED’s summons for March 17. Khaira, who is Punjab Ekta Party president and Bholath MLA had alleged that he was targeted since he was supporting farmers protest.

It also claims that after 2015 FIR when Gurdev Singh was on the run between February 2015 and March 2015, he was in contact of Khaira through Gurdev’s UK based sister Charanjit Kaur and Joga Singh, personal security officer of Khaira.

The case is merely not only about proceedings of crime generated but also financing the narcotics smuggling, acquisition of arms and to provide safe passage to other criminals, it says.

Khaira, however, said: “It’s cock and bull story by the ED. The agency went through my bank accounts of 12 years and added my agricultural limit worth ₹3 crores in my income. I have answer to each and every allegations of the agency.

The central agency is after me for my legitimate income of 12 years, but it doesn’t have the guts to ask anything to Badals and Captain who looted the state for several years,” said Khaira.