Supreme Court Dismisses Rana Ayyub's Plea Challenging Jurisdiction Of Ghaziabad Court To Try PMLA Case Against Her

The Supreme Court on Tuesday dismissed the writ petition filed by journalist Rana Ayyub challenging the jurisdiction of a special court in Ghaziabad under the Prevention of Money Laundering Act, 2002 to take cognisance of the complaint filed by the Enforcement Directorate against her for alleged violations in amounts collected through crowdfunding for COVID relief.On January 31, a division bench of Justices V. Ramasubramanian and J.B. Pardiwala had reserved the verdict in a petition filed by Ayyub challenging the court summons against her on the ground of lack of jurisdiction of the Ghaziabad court.Senior Advocate Vrinda Grover, appearing on behalf of the journalist, had argued that the Uttar Pradesh court had ‘absolutely no jurisdiction’ since no part of the alleged offence was committed in the state and that the alleged proceeds of crime are in an account maintained in Navi Mumbai. The bench has rejected this argument, while leaving it open to the petitioner to raise the issue before the trial court.Justice Ramasubramanian read out the operative portion of the order as follows :“Under Section 3 of PMLA, place where any of six activities or processes are carried out - concealment, possession, acquisition, use, projecting as untainted property, claiming as untainted property, the offence of money laundering is said to have taken place. Navi Mumbai, where the bank account is located, is the destination where the proceeds of crime have reached, if at all. The question as to whether any one or more of the six activities have taken place question of fact which has to be decided based on evidence. Therefore, we leave it open for this issue to be raised before the trial court. Petition dismissed.”Detailed judgment is yet to be uploaded.Solicitor General of India Tushar Mehta, appearing for the ED, had argued that the money laundering complaint has to be filed at the place where the scheduled offence has taken place. The ED initiated the investigation based on an FIR registered at Ghaziabad. He also argued that persons from UP and Noida have also donated for Ayyub's campaign and hence a part of the offence has taken place in that jurisdiction. He refuted Grover's argument that money laundering complaint can only be filed at a place where the proceeds of crime are found. Ayyub came under the scanner of the federal agency for allegedly ‘cheating’ the public by misappropriating charitable donations worth Rs 2.69 crore and for receiving overseas donations without registration under the Foreign Contribution (Regulation) Act, 2010. The investigation was initiated on the strength of a first information report registered in September 2021 by the Indirapuram Police Station in Ghaziabad under various sections of the Indian Penal Code, 1860, Information Technology Amendment Act, 2008, and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. What was of interest to the law enforcement agency was a series of three campaigns launched since 2020 by the journalist on an online crowdfunding platform called Ketto to raise funds for slum-dwellers and farmers, relief work in Assam, Bihar, and Maharashtra, and for people impacted by the COVID-19 pandemic in India. In February, in the course of the investigation, bank balances in the accounts of Ayyub amounting to around Rs 1.77 crore, including a fixed deposit of Rs 50 lakh were attached by means of provisional attachment order. In March, the award-winning journalist was stopped by immigration officials at the Mumbai airport from taking a flight to London, on the basis of a ‘Look out Circular’ issued against her by the ED for allegedly failing to comply with their summons. The Delhi High Court, in April, quashed the circular, allowing Ayyub to travel abroad, and in August, restrained the federal agency from proceeding further with the provisional attachment of her properties in connection with the money laundering probe. Finally, in October, the Enforcement Directorate concluded the investigation. “The investigation has established that Rana Ayyub had launched the fundraising campaigns with the sole intention to cheat the general public and acquired proceeds of crime in form of fixed deposits and balances in bank accounts projecting them as untainted,” the ED claimed in a statement on October 13, one day after it filed a charge-sheet against Ayyub before a special PMLA court in Ghaziabad under Section 45 read with Section 44 of the anti-money laundering act. Ayyub, a prominent critic of the current ruling dispensation, claimed that she was being targeted and intimidated for her work and for questioning the ruling regime.On November 29, the special court took cognizance of the prosecution complaint and summoned Ayyub to appear before the court on January 27. The journalist moved the top court in January praying for the proceedings initiated by the Enforcement Directorate in Ghaziabad to be quashed. The...

Supreme Court Dismisses Rana Ayyub's Plea Challenging Jurisdiction Of Ghaziabad Court To Try PMLA Case Against Her

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Awstika Das

Supreme Court Dismisses Rana Ayyub's Plea Challenging Jurisdiction Of Ghaziabad Court To Try PMLA Case Against Her

Awstika Das

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Awstika Das

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