Bombay HC 'Disappointed' With CBI & Mumbai Police Showing Reluctance To Probe Multi-Crore Money Laundering Case; Orders Formation Of SIT

The Bombay High Court recently expressed 'disappointment' over the Central Bureau of Investigation (CBI) and also the Economic Offences Wing (EOW) of the Mumbai Police, both showing 'reluctance' to investigate into the complaints of multi-crore fraud by a company both in India and also several foraging countries.A division bench of Justices Revati Mohite-Dere and Prithviraj Chavan noted that both the EOW as well as the CBI, for the reasons best known to these Agencies, were reluctant to inquire/investigate into the complaints made by one Shoaib Sequeira accusing one Anand Jain, promoter of Jai Corporation Ltd. and its subsidiaries of misappropriating public funds and laundering the same outside India. "We have no words to demonstrate the conduct of the Investigating Agencies viz: EOW as well as CBI. We may say, we are disappointed. We feel that there will be no fair and impartial investigation into the alleged crimes either by the EOW or by the CBI and hence, a special team needs to be constituted by the Zonal Director CBI to ensure efficient investigation into the offences of such magnitude. The need to instil confidence in the investigations and consequently, in the administration of justice, is of utmost concern," the bench recorded in its January 31 order. The case in question, the bench underscored, has national and international ramifications. No doubt, the EOW in its internal notings which were placed before us for perusal, observed, that considering the magnitude of the alleged scam which runs into thousands of crores of rupees, multiplicity of jurisdictions, the role of nationalised Banks (Union Bank, IDBI Bank, IDFC Bank) and Mauritius based private equity fund plus trans-border transactions with USA, Australia and UAE, it is in the best interests of investigation that the matter be handled by CBI, SFIO. The reluctance to inquire/investigate was writ large during the hearing of the petition, the bench observed. "Looking to the conduct of both the EOW and CBI, we as Constitutional Court cannot remain a mute spectator when it becomes apparent that the Agencies are passing the buck from each other. Our justice system will acquire credibility only when the people at large will be convinced that the justice is based on the foundation of truth, provided the investigation is carried out impartially, fairly and in an unbiased manner. It is also equally important to strengthen the faith and confidence of the people in the law enforcing agency and also in the institution for administration of justice, else, it would be shaken," the judges underlined. The bench added, "Crimes affect the entire society and thus interest of the society in the investigation cannot be entirely ignored. We are hopeful and confident that the Special Investigation Team (SIT) which would be constituted will make every endeavour to uncover the truth and examine the allegations/material and thereafter, take the case to its logical end."The order came to be passed on a plea filed by social activist Shoaib Sequeira who alleged multi-crore money laundering by Jain through his various firms and subsidiaries, both in India and also in countries like USA, Australia, UAE, Mauritius etc. The petitioner contended that on January 1, 2021, he came across a news report wherein it was reported that the Securities Exchange Board of India (SEBI) had imposed a hefty penalty of Rs 20 crores and Rs 10 crores on two companies - both of which were owned by Jain. Therefore, the petitioner conducted an in-dept analysis of the 'modus operandi' of Jain and found that he perpetuated economic and investor fraud to the tune of Rs 3000 crore through various associates and subsidiaries. The petitioner contended that he noticed the method adopted by Jain to funnel and illegally route back public money for his personal gain by collecting, collating and analysing voluminous data over a span of eleven months. The petitioner therefore filed two complaints with the EOW on December 22, 2021 and April 3, 2023. However, on his first complaint, the EOW referred the matter to SEBI stating that it had the actual jurisdiction to look into the complaint filed by the petitioner. On the second complaint, the EOW referred the case to the CBI, which again did not investigate the case and further referred the complaint to the SEBI. Irked with this approach of both the CBI and EOW, the judges transferred the probe to an SIT to be constituted by the Zonal Director of the CBI. A further directive has been issued to the Joint Director of the CBI, Mumbai (Anti Corruption Bureau) to supervise the investigations in the case. Appearance:Senior Advocate Aabad Ponda along with Advocates Parth Jain, Puru Jain and Rutvi Soni instructed by Jain Law Partners LLP appeared for the Petitioner.Chief Public Prosecutor Hiten Venegavkar along with Additional Public Prosecutor Prajakta Shinde represented the State. Chief Public Prosecutor Hiten Venegavkar along with Advocate Ayush Kedia represented...

Bombay HC 'Disappointed' With CBI & Mumbai Police Showing Reluctance To Probe Multi-Crore Money Laundering Case; Orders Formation Of SIT

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Bombay HC 'Disappointed' With CBI & Mumbai Police Showing Reluctance To Probe Multi-Crore Money Laundering Case; Orders Formation Of SIT

Narsi Benwal

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