Payment of extortion doesn't mean terror funding: SC

The Supreme Court on Friday said payment of extortion money does not amount to terror funding or giving protection money cannot be termed as raising funds for promoting a banned organisation.

The top court allowed bail to Suresh Kedia, who was accused of paying money to the members and operatives of terrorist organisation Tritiya Prastuti Committee (TPC) for smooth running his coal transport business in Jharkhand.

"The main accusation against the appellant is that he paid levy or extortion amount to the terrorist organisation. Payment of extortion money does not amount to terror funding," a bench of Justices L Nageswara Rao and S Ravindra Bhat said.

The court also pointed out that it was clear from the supplementary charge-sheet that other accused, who are members of the terrorist organisation, have been systematically collecting extortion amounts from businessmen in Amrapali and Magadh areas.

Kedia was engaged in the business of transporting coal on behalf of GVK Power and Godavari Commodities.

"It is alleged in the second supplementary charge-sheet that the money to the members of the TPC for smooth running of his business. Prima facie, it cannot be said that he conspired with the other members of the TPC and raised funds to promote the organisation," the court said.

The court set aside the Jharkhand High Court judgment of February 14, 2020, which upheld the denial of bail to Kedia, in the case registered under the Unlawful Activities (Prevention) Act and provisions of other laws.

With regard to allegations that Kedia met members of TPC, the court relied upon his statement recorded under Section 164 Criminal Procedure Code that he was summoned to meet members of the organisation in connection with the payments made by him.

"Prima facie, we are not satisfied that a case of conspiracy has been made out at this stage only on the ground that he met the members of the organisation," the bench added.

As to the recovery of Rs 9.95 lakh as "terror fund" from the house of accused, the court referred to accused's version that the amount was withdrawn from the bank to pay salaries to his employees.

"We do not agree with the prosecution that the amount is terror fund. At this stage, it cannot be said that the amount seized is proceeds from terrorist activity. There is no allegation that he was receiving any money. On the other hand, he is accused of providing money to the members of TPC," the bench said.