Allowed

Hitesh Gandhi v. Enforcement Directorate

Himachal Pradesh HC16 Sept 2024CRMPM/2034/2024

Case brief

AI extract

What is this about?

The High Court granted interim bail to the applicant, a PMLA arrested person, releasing him on a personal bond with two sureties. This was allowed to enable his presence in bank proceedings regarding a seized property while the investigation continued under PMLA.

What did the court decide?

Bail on conditions to be released on 18.09.2024 till 28.09.2024 on furnishing a personal bond of Rs. 2,00,000/- with two sureties.

Hitesh Gandhi Vs Enforcement Directorate — Money Laundering | Himachal Pradesh HC (2024)

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1 2024:HHC:8567 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

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CrMP(M) No. : 2034 of 2024 Decided on : 16.09.2024 Hitesh Gandhi …Applicant Versus Enforcement Directorate Office (ED) …Respondent

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Coram

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The Hon’ble Mr. Justice Virender Singh, Judge.

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Whether approved for reporting?¹

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For the applicant : Mr. Ashok Sharma, Senior Advocate, with Mr. Jyotirmay Bhatt, Advocate.

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For the respondent : Mr. Balram Sharma, Deputy Solicitor General of India, with Mr. Ajeet Singh Saklani, Advocate, assisted by Mr. Sunil Kumar, Enforcement Officer and Mr. Mayank Kumar, Assistant Enforcement Officer, Directorate of Enforcement, Shimla.

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Virender Singh, Judge. (Oral)

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By way of the present application, filed, under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (hereinafter referred to as the ‘BNSS’), a prayer has

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been made to release applicant-Hitesh Gandhi, on interim 1 Whether Reporters of local papers may be allowed to see the judgment? Yes.

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bail, in case No. ECIR/SHSZO/04/2019 dated 22.07.2019, registered with the Enforcement Directorate Office (ED), Sub-Zonal Office, Rani Villa, Bagrian House, Strawberry Hills, Chhota Shimla, Shimla, Himachal Pradesh, on the ground that he is the Director of M/s Walia Traders Ltd. and the Punjab National Bank has taken the possession of Hotel Holiday Inn at Panchkula, on 3^rd September, 2024.

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According to the applicant, the said property is worth more than three thousand crores and the same is taken over by the Bank for the loan of only one hundred crore.

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It is the stand of the applicant that the matter cannot be resolved without presence of the applicant and it is necessary for him to join the proceedings before the Bank, in order to save the property.

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Earlier, the applicant had filed CrMP (M) No. 2636 of 2023 for grant of regular bail, before this Court, however, the same was dismissed, by this Court, vide order dated 12.01.2024.

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Thereafter, vide order dated 28.06.2024, passed in CrMP(M) No.1264 of 2024, the jail authorities were

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directed to take the applicant to the hospital, where, his uncle was stated to be admitted and in pursuance of the directions of this Court, the applicant was taken to the hospital, where, his uncle was admitted.

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Also, vide order, dated 9^th July, 2024, passed by this Court, in CrMP (M) No. 1470 of 2024, six days’ interim bail, with effect from 16.07.2024 to 21.07.2024, was granted to the applicant.

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Thereafter, interim bail, with effect from 7^th

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August, 20224 till 15^th August, 2024, vide order, dated 6^th

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August, 2024, passed in CrMP (M) No. 1662 of 2024.

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On the basis of above facts, a prayer has been made to allow the present application.

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In the status report, filed by the respondent, the grounds, upon which, the case has been registered, have been reiterated by pleading that:

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9.1. The matter revolves around a scam, involving the allocation of scholarships to SC, ST and OBC students, under the Post Matric Scheme. In this fraudulent activity,

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officials from the Department of Higher Education, alongwith private Educational Institutions and Banks,

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were involved, which has resulted into misappropriation of scholarship funds of more than ₹ 200 crore.

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9.2. The applicant, according to the stand, taken by ED, along with others, has played a major role in the scam, wrongfully withholding the rightful scholarship entitlement of the scholarships of the students, belonging to SC, ST and OBC students of Himachal Pradesh. According to ED, they have diverted the said funds into their pockets/ accounts. 22 institutions are stated to be involved. In this regard, ED has relied upon the charge sheet submitted by CBI. The investigation is stated to be going on to unearth the illicit money and ascertain the proceeds of crime (PoC), obtained by way of this scam.

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9.3. After recording the reasons to believe in writing, the applicant and his co-accused were arrested by ED on 30^th August, 2023, under Section 19 of PMLA, in the said ECIR. Thereafter, they were produced before the Special Designated Court (PMLA), Shimla, on 31^st August, 2023, and the learned Special Court, after perusal of all the documents, including the arrest memo, grounds of arrest, reasons to believe and material for formation of such belief,

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has granted five days’ ED custody, with a direction, to produce the accused persons before the Special Court on 4^th September, 2023, on which date, they were produced before the Special Court and were remanded to judicial custody.

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9.4. It is the further case of the ED that investigation is on-going and is at crucial stage, which requires gathering of additional evidence, examination of voluminous records and recording of statements of several persons associated with the applicant and other accused persons related to the case.

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9.5. The prayer, so made by the applicant, has further been opposed, on the ground that the offences, under the PMLA, are different offences, as such, constitute class apart and need to be dealt with different approach, in the matter of bail.

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9.6. According to the ED, the offence, under investigation, requires detailed investigation to unearth the material and in such circumstances, if bail is granted, it would defeat the case of the prosecution. The twin

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conditions, as per Section 45 of the PMLA, are also stated to be not satisfied, in this case.

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9.7. Elaborating their stand, it is the case of the ED that CBI registered FIR No. RC0962019S0002, dated 7^th May, 2019, under Sections 409, 419, 465, 466 and 471 IPC, against the unknown persons. As per the allegations of the said case, there were complicity of individuals from State Government Education Department, Bank Officials and private institutions. Misappropriation in the disbursement of scholarship funds, in large scale, has also been alleged. The offences, under Sections 419 and 471 IPC, are also stated to be scheduled offences, mentioned in the schedule, appended to PMLA and as such, inquiry was initiated.

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9.8. The applicant is stated to be the Vice Chairman of KC Group of Institutions at Pandoga, Una and Nawashehar, Punjab. According to the ED, during the course of investigation, it has been revealed that KC Group of Institutions, Pandoga and Nawashehar, in connivance with the officials of Directorate of Higher Education, Himachal Pradesh and Bank officials, have fraudulently

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availed the scholarship, under the Post Matric Scheme, for SC/ST/OBC of Himachal Pradesh.

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9.9. According to the ED, the applicant has verified and claimed the scholarship under Post Matric Scheme, for the students, belonging to SC/ST/OBC, who were not enrolled in any course, with KC Group of Institutions Pandoga and who had left the institute without completing their studies. In order to grab more and more scholarship, false details of students were uploaded on scholarship portal, by changing the course of study in subsequent years, by changing the caste category of students and by showing the students as hosteler, instead of day scholars. Such false details were verified by the staff of KC Group of Institutions Pandoga and scholarship was claimed from the Directorate of Higher Education.

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9.10. The applicant is alleged to have supervised the entire work related to admission and claim of scholarship, under Post Matric Scheme, for SC/ST/OBC students of Himachal Pradesh of KC Group of Institutions, Pandoga and Nawashehar. According to the ED, the applicant was joint account holder in bank accounts, alongwith his father

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Prem Pal Gandhi, in which, illegally obtained scholarship amount got transferred from the bank accounts of the students.

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9.11. It is the further allegation of the ED that the applicant, so far has obtained proceeds of crime to the tune of ₹ 4.42 crore, through KC Group of Institutions, Pandoga.

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9.12. Apart from this, it has been apprehended that the applicant may influence the witnesses, who, are his exemployees and also hamper the investigation to trace remaining proceeds of crime.

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On the basis of above facts, a prayer has been made to dismiss the application.

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It is not in dispute that one of the properties of the applicant, at Panchkula, has been taken into possession by the Punjab National Bank and the matter cannot be resolved without presence of the applicant, as, he has to join the proceedings before the Bank.

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It would not be out of place to record herein that the applicant was ordered to be released on interim

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bail, on previous occasions also, which liberty has not been misused by the applicant.

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Considering the given facts and circumstances, of the case, this Court is of the opinion that the prayer of the applicant for interim bail can be allowed.

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It has also been submitted by learned Senior Counsel that the applicant is ready to abide by, any condition, which would be imposed by this Court, in case, interim bail is allowed in favour of the applicant.

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It is not in dispute that the passport of the applicant is with the Central Bureau of Investigation in case No. RC0962019A0002 dated 07.05.2019, under Sections 409, 419, 465, 466, 467 read with Section 120B of Indian Penal Code and Sections 13(1)(c), 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act.

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Considering this fact, this Court is of the view that the interim bail application is liable to be allowed, so that the applicant could be able to appear in the proceedings before the Bank.

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Consequently, the bail application is allowed and the applicant is ordered to be released, on interim bail,

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on and with effect from 18^th September, 2024 till 28^th September, 2024, in the case, as mentioned above, on his furnishing personal bail bond, in the sum of ₹ 2,00,000/-, with two sureties, in the like amount, to the satisfaction of learned trial Court. This order, however, shall be subject to the following conditions:

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a) The applicant shall not tamper with the prosecution evidence nor hamper the investigation of the case in any manner whatsoever;

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b) The applicant shall not make any inducement, threat or promises to any person acquainted with the facts of the case so as to dissuade them from disclosing such facts to the Court or the Police Officer;

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c) The applicant shall not leave the territory of India without the prior permission of the Court.

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The applicant is directed to surrender, before

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the jail authorities, on 28^th September, 2024, positively by 05.00 p.m.

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Needless to observe that the applicant shall not seek any exemption to appear before the learned trial Court, on the date(s) fixed, if any, in the trial, during the period of interim bail.

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Any of the observations, made hereinabove, shall not be taken as an expression of opinion, on the

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merits of the case, as, these observations, are confined, only, to the disposal of the present bail application.

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It is made clear that respondent-ED would be at liberty to move appropriate application, in case, any of the bail conditions, is found to be violated, by the applicant.

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Registry is directed to forward a soft copy of the bail order to the Superintendent of District Kaithu Jail, Shimla, through e-mail, with a direction to enter the date

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of grant of interim bail in the e-prison software.

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( Virender Singh ) Judge

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September 16, 2024 ( rajni )

Hitesh Gandhi v. Enforcement Directorate

Case brief

What is this about?

What did the court decide?

Hitesh Gandhi v. Enforcement Directorate

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Coram

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