The court had heard a PIL by UP leader Ranvir Singh, who has accused Iqbal of indulging in money laundering
The Supreme Court has given the Ministry of Corporate Affairs (MCA) a fortnight to decide whether whether it plans to grant or deny sanctions to prosecute Bahujan Samaj Party leader Mohammed Iqbal.
The ex-Member of Legislative Council (MLC) has been accused of laundering money to the tune of Rs 10,000 crore by creating a maze of over hundred shell companies.
"We direct the Ministry of Corporate Affairs to take a conscious decision on whether to grant sanction to prosecute (Iqbal) or not within ten days from today," the court said. The bench also ordered the same reports be made available to the MCA in order to help them in taking a decision to grant or deny the permission to prosecute Iqbal.
After perusing status reports submitted under a sealed cover by the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED), a bench comprising Chief Justice JS Khehar and Justice DY Chandrachud said that a clear case was made out.
The reports were submitted by Rajeshwar Singh, a joint director in the Enforcement Directorate (ED), who appeared before the bench in pursuance of an earlier order. Singh submitted that the agency could not prosecute Iqbal under the Prevention of Money Laundering Act (PMLA) unless the Central Bureau of Investigation (CBI) or the SFIO registered a case against Iqbal.
Appearing for the various probe agencies, Additional Solicitor General (ASG) Maninder Singh submitted, according to the reports, 111 shell companies have been used to launder money. The ED could proceed if other agencies lodged the FIR for a substantial offence.
PMLA cases deal with proceeds of crime. Before someone can be prosecuted for the proceeds, the crime must be made out, Singh submitted.
The apex court, on August 8 2016, had perused the probe reports of the SFIO), the ED and the Central Board of Direct Taxes (CBDT) on a complaint against the BSP Member of Legislative Council (MLC).
On the heels of a complaint, the court had then asked the CBI to "look" into the matter. "In that view, we expect the CBI to examine the matter at an appropriate level for such action as may be considered necessary in accordance with the law."
The court was hearing a PIL filed by UP leader Ranvir Singh, who has accused Iqbal of indulging in money laundering. He alleged that the CBI has not taken any action on the complaint.
Iqbal though refuted the charges against him and alleged that Ranvir himself had serious criminal cases against him.
The former legislative member came under the scanner for allegedly amassing unaccounted wealth to the tune of Rs 10,000 crore after declaring assets worth Rs 6.5 crore in his 2010 election affidavit.
The Bench had referred to the probe that revealed that a large number of companies were set up on one address. Reports suggested that Iqbal had set up partnership firms and funds to the tune of Rs 1,374 were being routed from there.
Iqbal was suggested as the kingpin of the operation and an initial probe had indicated there was some nexus with the alleged activities of former Uttar Pradesh Minister Babu Singh Khushwaha, an accused in NRHM (National Rural Health Mission) scam, and the companies attached to the MLC.
PIL FILED
- The court had heard a PIL by UP leader Ranvir Singh, who has accused Iqbal of indulging in money laundering.
- Iqbal refuted the charges against him and alleged that Ranvir himself had serious criminal cases against him
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