ED’s PFI case is like putting cart before horse: Delhi high court | Delhi News

NEW DELHI : Collection of funds, even if done illegally for a future offence, can’t be termed proceeds of crime, Delhi high court held Wednesday while granting bail to three members of the banned organisation Popular Front of India’s Delhi unit.
The Enforcement Directorate accused them of raising funds for the 2020 anti-CAA protests and the subsequent northeast riots, reports Abhinav Garg.
“Proceeds of crime have to be generated as a result of criminal activity (scheduled offence). The collection of funds in an illegal way to commit a scheduled offence in the future is not an offence of money laundering under PMLA…,” Justice Jasmeet Singh observed while granting relief to Parvez Ahmed, Mohd Ilyas & Abdul Muqeet.
The funds so collected are not proceeds of crime and can be proceeds of crime only when they were generated because of a scheduled offence. The case set up by ED is putting the cart before the horse,” Justice Jasmeet Singh observed. Ordering their release on bail, the court added “Prima facie, I am of the view the offence of money laundering is not made out against the petitioners” as it noted that “in the present case, collection of funds precedes the crime, i.e., Delhi riots.”
ED registered the case in Sept 2022 following an FIR by NIA under provisions of IPC and Unlawful Activities (Prevention) Act against PFI and its members. While accused Ahmed was President of Delhi state unit of PFI from 2018 to 2020, Ilyas was general secretary since Nov 2018, and Muqeet was office secretary since 2017. All the petitioners were arrested on Sept 22, 2022 in the case.
ED alleged the petitioners were actively involved and instrumental in raising funds for PFI as part of a “larger criminal conspiracy” and to use it for nefarious activities in India. It was claimed PFI conducted anti-CAA protests across India and there was a flow of cash from suspicious sources in the form of proceeds of crime to disturb communal harmony and incite violence through riots.