Money laundering case: SC refuses to interfere with HC order granting bail to Preeti Chandra

New Delhi, Aug 4 (PTI) The Supreme Court on Friday refused to interfere with the Delhi High Court order granting bail to Preeti Chandra, wife of Unitech promoter Sanjay Chandra, in a money laundering case.

Observing that Preeti Chandra has been in custody for over 620 days, a bench headed by Chief Justice D Y Chandrachud affirmed the high court order and directed her not to leave the limits of the national capital region (NCR).

The bench, also comprising Justices J B Pardiwala and Manoj Misra, directed Preeti Chandra to report to the investigation officer once every two weeks and not to dispose of any property without the specific permission of the special court.

“Having due regard to the exercise of discretion, the high court has come to conclusion that the respondent (Preeti Chandra) should be released on bail, we are not interfering with the order under Article 136 of the Constitution ,” the bench said.

The top court passed the order on a plea filed by the Enforcement Directorate (ED) challenging the high court’s June 14 order granting bail to her.

The apex court had on June 16 stayed the high court order and issued a notice to Preeti Chandra on the ED’s plea.

Referring to the conditions imposed by the high court while granting bail, the top court on Friday noted the high court had restrained Preeti Chandra from leaving India.

Senior advocate Kapil Sibal, appearing for her, referred to one of the conditions imposed by the high court which said, “The applicant (Preeti Chandra) shall give up her citizenship of Dominican Republic within a period of one week from the date of release and documentary proof of the same be placed before the trial court.”

Additional Solicitor General S V Raju, who represented the ED, said this condition has not been challenged and she cannot ask for a modification.

“If I (Preeti Chandra) give up the citizenship now and I don’t get Indian citizenship, I will be stateless,” Sibal said.

He argued that Preeti Chandra is ready to give up her
citizenship of Dominican Republic but the authorities in India must also process her application for Indian citizenship.

The bench noted that she would apply for Indian citizenship and the application may be processed in accordance with law.

It extended by two weeks the time for compliance with the HC order for surrendering the citizenship of Dominican Republic.

“Dominican Republic citizenship you have to give up, because I am also aware of how much money has gone abroad in Cayman Islands and other things. Fortunately, because of our orders, all this came to light,” Justice Chandrachud observed.

During the hearing on the plea on July 25, the ED had assailed the high court’s order and told the apex court that Rs 7,000 crore of home buyers money was purportedly siphoned off in the alleged scam committed by Unitech promoters.

The ED had claimed that the case pertained to a scam of “huge magnitude” and Preeti Chandra had a “substantial role” in it.

The high court had on June 14 granted bail to Preeti Chandra and said the order will not take effect till June 16, after the ED sought time to challenge it.

The ED had registered the case under various sections of the Prevention of Money Laundering Act (PMLA) against the Unitech Group and its promoters over allegations that the owners Sanjay Chandra and Ajay Chandra illegally diverted over Rs 2,000 crore to Cyprus and the Cayman Islands.

Preeti Chandra had sought bail saying she was a fashion designer and philanthropist, who has been in custody since October 4, 2021 and that there were no proceeds of crime relatable to her.

The money laundering case arose from a number of Delhi Police and CBI FIRs filed by the home buyers against the Unitech Group and its promoters. A charge sheet has already been filed before the trial court.

It has been alleged that funds collected from home buyers for housing projects were not utilised for their intended purpose and that the buyers were cheated and the accused committed the offence of money laundering.

The allegation against Preeti Chandra, as per the prosecution, is that she received the proceeds of crime totalling Rs 107 crore in her company Prakausli Investments Pvt Ltd but did not disclose how the money was used.

On November 7, 2022, the trial court refused to grant her bail citing the “enormity of the transactions and seriousness of the allegations”.