Background: Denial of Bail by Allahabad High Court
Abbas Ansari was previously denied bail by the Allahabad High Court on May 9, 2023. The court cited Section 45 of the Prevention of Money Laundering Act (PMLA), 2002, and stated that it could not establish prima facie satisfaction that the applicant was not guilty or would not re-offend if granted bail. Ansari had filed a special leave petition in the Supreme Court challenging this denial.
In a separate ruling, the Supreme Court had earlier permitted Ansari to attend a private prayer service for his father, Mukhtar Ansari, on June 11 and 12. This prayer service was allow Justices Surya Kant and KV Viswanathan.
Allegations by the Enforcement Directorate (ED)
The Enforcement Directorate (ED) has built a case against Ansari, accusing him of money laundering through two firms—M/s Vikas Construction and M/s Aaghaaz.
Details of the Allegations
- Usurping Government Land:
- The firm allegedly acquired public land in Mau and Ghazipur through forgery, cheating, and criminal trespass.
- Acquisition of Public Contracts:
- The firm procured government contracts by exploiting connections, often securing contracts over competitors.
- Rent Payments from Public Corporations:
- The rented properties generated significant income from Food Corporation of India (FCI) and Uttar Pradesh State Warehousing Corporation.
- Subsidies from NABARD:
- The firm received a subsidy of over ₹67 lakhs from the National Bank for Agriculture and Rural Development (NABARD).
- Layering of Funds:
- The ED allege that the money generat was rout through various accounts, including M/s Aaghaaz, before being withdrawn as cash or used to repay loans.
- Misuse of Loans:
- Loans taken by M/s Vikas Construction were allegedly use to acquire properties at prices well below the market rate.
- Unexplained High-Value Transactions:
- Multiple unexplained high-value transactions were credit and debit from Ansari’s accounts, raising suspicion of money laundering activities.
- Key Shareholders in the Firm:
- Major shareholders included Afshar Ansari (mother) and Atif Raza (maternal uncle), suggesting close family involvement in the alleged activities.
Illegal Jail Meetings Case: Additional Bail Granted
In a separate case involving illegal meetings in jail, Ansari was also grant bail Justices Surya Kant and Ujjal Bhuyan on October 18.
Conclusion
The bail granted by the Supreme Court offers temporary relief to Abbas Ansari, but the investigation the Enforcement Directorate continues. With the PMLA case highlighting alleged misuse of public funds and illegal transactions, the next phase of the legal proceedings will be critical.
While Ansari has denied any wrongdoing, the case underscores the complex nature of money laundering investigations and the importance of transparency in public life. The coming months will determine the outcome of the trial and whether further legal action will pursue.
