Delhi court sends I-PAC director Vinesh Chandel to 10-day ED custody

New Delhi: A Delhi court has sent I-PAC co-founder and director Vinesh Chandel to the ED's custody for 10 days, saying there are reasons to believe that he was actively involved in processes and activities connected with the generation, diversion and possession of proceeds of crime worth several crores.

Chandel was produced before Additional Sessions Judge Shefali Barnala Tandon's residence around midnight on Monday, following which the proceedings were held till 3:30 am.

The Enforcement Directorate (ED) had sought 10 days' custodial interrogation of the accused.

In a 24-page order, the judge said, "There are reasons to believe that the arrestee (Chandel) has been actively involved in the processes and activities connected with generation, diversion and possession of proceeds of crime amounting to several crores of rupees."

Judge Tandon said the court has taken into consideration the "modus of business operation by M/s Indian PAC Consulting Pvt Ltd, searches conducted on April 2 at various premises of the aforesaid company and persons associated with the company, statements recorded under section 17 of the PMLA, 2002, etc., as mentioned in the requisite documents".

The judge said the grounds of arrest provided by the agency revealed that Chandel was involved in the use of hawala channels for the movement of funds generated by the company, besides allowing the utilisation of unaccounted cash or informal transfers outside the banking system.

"Further, the arrestee has made false statements under section 50 of the PMLA 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," she said, noting the ED's allegations.

The judge said according to the federal agency, Chandel had also instructed for the deletion of emails and sensitive data from the accounts of key employees immediately after the ED search on I-PAC premises in Kolkata on January 8, and admitted that such directions, including the deletion of financial records, were issued and implemented the next day.

"By doing so, the arrestee has deliberately attempted to destroy material evidence and obstruct the course of investigation. Further, the arrestee has knowingly assisted, directly or indirectly, and has been actively involved in the process and activity connected with proceeds of crime, including its concealment, possession, acquisition, use and projection as untainted property, and is therefore guilty of the offence of money laundering as defined under section 3 of the PMLA, punishable under section 4 thereof," the judge said, noting the agency's claims.

She said the ED had sought Chandel's custody because he can further tamper with evidence and influence witnesses, he has given evasive and misleading statements, he can abscond as he is a frequent international traveller and that his custody is needed for an effective probe.

"By way of present application, investigating officer (IO) seeks 10 days' ED custody of the arrestee for interrogation to ascertain the role of other alleged/suspected/beneficiary/accomplice persons involved in the above said laundering of proceeds of crime and also to unearth the further proceeds of crime, reveal crucial evidence related to the proceeds of crime and other persons involved in the process or activities connected with proceeds of crime and also to identify the complete modus operandi of the offence which are within his specific knowledge," the judge said.

Allowing 10 days' ED custody till April 23, the court directed that Chandel's interrogation will be conducted at a place that has CCTV cameras and the footage has to be preserved. Besides, Chandel has to be medically examined every 48 hours.

The court also noted that the ED has complied with all statutory safeguards under the Prevention of Money Laundering Act (PMLA) after arresting Chandel.

In a major action days ahead of the West Bengal Assembly polls, the ED arrested Chandel late on Monday evening after questioning. Chandel is a law graduate from the NLIU, Bhopal, and a 33-per cent shareholder of I-PAC.