Reasons to believe I-PAC director involved in illicit money generation: Court

The court sent Vinesh Chandel, director of political consultancy firm I-PAC, in 10-day Enforcement Directorate (ED) custody

A Delhi court on Tuesday sent Vinesh Chandel, director of political consultancy firm I-PAC, in 10-day Enforcement Directorate (ED) custody in connection with a money laundering probe, noting that there are reasons to believe he was actively involved in the generation, diversion and possession of crores of illicit money related to the firm.

The court said hawala channels were used for movement of funds. (Getty Images/iStockphoto)

In a 24-page order, additional sessions judge Shefali Barnala Tandon of Patiala House Courts agreed with the ED that Chandel’s custody was required to unearth the further proceeds of crime and identify the complete modus operandi related to the offence, including other beneficiaries and accomplices.

Chandel was produced in the court at 11pm on Monday and the proceeding continued for two hours until 1am on Tuesday. Senior advocate Vikas Pahwa represented Chandel and special public prosecutor Simon Benjamin appeared for the ED.

The court said Chandel used hawala channels for movement of funds the company generated and “allowed utilisation of unaccounted cash/informal transfers outside the banking system”. It noted he made false statements under the Prevention of Money Laundering Act (PMLA)’s Section 50 by denying the existence of cash transactions and misrepresented that the company dealt exclusively with political parties.

“…whereas investigation has revealed transactions with multiple third-party entities without any legitimate business purpose, thereby deliberately misleading the investigation,” the court said.

The court underlined that Chandel instructed deletion of e-mails and sensitive data from the accounts of key employees immediately after the ED’s searches in January. “By doing so, the arrestee has deliberately attempted to destroy material evidence and obstruct the course of investigation…the arrestee has knowingly assisted, directly or indirectly, and have been actively involved in the process and activity connected with proceeds of crime, including concealment, possession, acquisition, use and projection as untainted property,” the court said.

The court said that the accused was evasive during investigation and may tamper with evidence, which is why custodial interrogation became necessary.

Pahwa argued that the arrest was politically motivated in view of elections in Tamil Nadu and West Bengal and that Chandel has cooperated with the ED’s summons.

Chandel was arrested in a case of alleged illegal mining and coal transportation in West Bengal. The ED has alleged that around ₹20 crore proceeds of crime generated in the mining were transferred through hawala channels to I-PAC.

Chandel was arrested over a week after the ED raided his residence and the premises of another I-PAC director, Rishi Raj Singh, and former Aam Aadmi Party communications in-charge, Vijay Nair, on April 2.

In January, the ED accused West Bengal chief minister Mamata Banerjee of obstructing its searches and removing evidence as the agency raided the I-PAC office and the premises of its director, Pratik Jain. Banerjee alleged that the ED attempted to seize election-related documents from I-PAC ahead of the West Bengal assembly elections. I-PAC works with the Trinamool Congress.

I-PAC in January said its role was limited to transparent, professional political consulting, free of influence from political ideology.