GST policy scam: Sanjay Singh created special purpose vehicle to launder money, education ministry tells Delhi HC

The Enforcement Directorate (ED) has argued before the Delhi government that arrested AAP MP Sanjay Singh was allegedly involved in creating special purpose vehicles to launder “proceeds of crime” arising from business arising from changes in Delhi’s excise tax policy. High Court. Singh was arrested in connection with a money laundering case related to the Delhi excise policy “scam”.

The ED stated that Singh was involved in obtaining, possessing, concealing, dispersing and using the proceeds of crime arising from the Delhi liquor scam during the policy period 2021-22. The education ministry made this argument in an affidavit filed in response to Singh’s bail plea in the money laundering case.

The Federal Council member, who was arrested by the Ministry of Education on October 4 last year, challenged the court of first instance’s December 22 order rejecting his request for bail in the money laundering case. The case was brought before Justice Swarana Kanta Sharma on Tuesday. The case was listed on Wednesday as the ED lawyer was unavailable in court.

The investigative agency said in its affidavit that during the course of the investigation, it was found that Singh was a key accomplice in the fraud case, and that he and businessmen Dinesh Arora and Amit were the accused or suspects in the case. ·Amit Arora has a close relationship. “…it is clear that Sanjay Singh was involved in the creation of a special purpose vehicle (M/s Aralias Hospitality Pvt Ltd) to launder the proceeds of business crimes arising out of policy changes in which he and his partners conspired. Further, Sanjay Singh Jai Singh was subsequently involved in obtaining, possessing, concealing, dispersing and using the proceeds of crime arising from the Delhi Liquor Scam in connection with the 2021-22 policy period.”

The agency further alleged that the AAP leader received illegal money or kickbacks which were proceeds of crime in the Liquor Policy (2021-22) scam and that he also conspired with others. ED said investigation revealed that Singh had received proceeds of crime of Rs 2 crore.

Singh is said to be in possession of certain confidential documents relevant to the investigation of the case, which are not in the public domain. The report stated that during a search of his residence on October 4, 2023, certain confidential documents were recovered, which were printouts of images taken at the ED office and illegally obtained.

Singh’s senior defense counsel Mohit Mathur said the senior AAP leader has been in custody for the past three months and is not believed to have played any role in the predicate offence. He has said that Singh was arrested after a statement from the Education Department’s “star witness”.

The education ministry claimed that Singh played a key role in the formulation and implementation of the now-defunct excise policy, which allegedly benefited certain liquor manufacturers, wholesalers and retailers on pecuniary grounds. The trial court held that he was associated with “proceeds of crime amounting to Rs 2 crore” and that the case against him was “genuine”.

The case relates to alleged corruption in the formulation and implementation of the excise tax policy for 2021-22 by the municipal government, which was later repealed. On the advice of Lieutenant Governor VK Saxena, the Central Bureau of Investigation (CBI) registered an FIR in connection with the alleged corruption.

The trial court said that the “basic case” of the Enforcement Directorate had been “approved” by the Supreme Court, which had also “sanctioned” the payment of bribes or kickbacks for formulating the Delhi government’s consumer policy for 2021-22. It rejected Singh’s submission that he could not be charged in the money laundering case as the CBI had not named him in the main federal probe report.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)