New Delhi: The Delhi High Court on Wednesday granted bail to two former members of the banned Popular Front of India (PFI), finding the Enforcement Directorate (ED) had not prima facie shown that payments received by them amounted to “proceeds of crime” under the Prevention of Money Laundering Act (PMLA).
Justice Purushaindra Kumar Kaurav released Anshad Badruddin and Abdul Khader Puttur, who were arrested by the ED in March 2024 in connection with an ECIR linked to the NIA’s probe into alleged PFI activities, LiveLaw reported. The court noted both men were first named as accused only in the fifth supplementary prosecution complaint and had not been identified in the original charge sheet.
The judge observed that payments made to the pair for physical training before the PFI’s ban cannot automatically be treated as illicit funds unless a corresponding scheduled offence is shown to have occurred. “Investigators cannot treat funds connected to an alleged future or continuing offence as ‘proceeds of crime’ without first proving that a scheduled offence actually took place,” the court said.
The bench added that allegations—accepted arguendo—that the men received weapon training must be examined at trial and do not, by themselves, establish that their salaries were laundered proceeds. The court also placed weight on the prolonged custody of the accused, noting both had spent more than two years and three months in jail, charges were yet to be framed, and the trial was unlikely to conclude soon.
Given these factors, the court held that continued detention was unwarranted and granted bail.