VIJAY NAIR IS FINALLY GRANTED BAIL BY THE SUPREME HON’BLE COURTAFTER 23 MONTHS OF JUDICIAL CUSTODY IN THE LIQUOR POLICY CASE OF DELHI

Case Title – Vijay Nair vs Directorate of Enforcement

Case No. – SLP (Criminal) Diary No. 22137 of 2024

Dated on – 03rd September, 2024

Quorum – Hon’ble Justice Hrishikesh Roy and Hon’ble Justice SVN Bhatti

Facts of the Case –

Vijay Nair, a co-defendant in the Delhi Excise policy scandal. The petitioner is accused of participating in irregularities in the formulation and execution of the Delhi Excise policy and acting as a middleman. Nair has been incarcerated for 22 months,

The current SLP is contesting the Delhi High Court’s decision to deny Vijay Nair, a co-accused in the Delhi Excise policy scam, bail. The petitioner is accused of participating in irregularities in the formulation and execution of the Delhi Excise policy and acting as a middleman. Nair had been denied bail by the Rouse Avenue Courts on February 16, along with co-accused Sameer Mahendru, Sharath Reddy, Abhishek Boinpally, and Benoy Babu. The trial Court mentioned the fact that there were ongoing investigations and that releasing the accused could lead to evidence tampering. Finding no illegality or perversity in the trial court’s order, the High Court upheld this ruling.

Issues –

1. Whether the accusations of involvement in money laundering related to the Delhi excise policy scam are suffice in regards of the granting the bail.
2. Regarding the special leave petition by Vijay Nair, accused under the Delhi Excise Policy under section – 45 of the PMLA Act, 2002.

Legal Provisions –

1. Article – 21 of the Indian Constitution.
2. Section -3 and Section -4 of the PMLA (Prevention of Money Laundering Act), 2002.
3. Section – 45 of the PMLA (Prevention of Money Laundering Act), 2002.
4. Section – 50 of the PMLA (Prevention of Money Laundering Act), 2002.
5. Section – 439 of the Code of Criminal Procedure, 1973.

Contentions of the Appellant –

Senior Attorney Abhishek Manu Singhvi argued on behalf of Nair that since bail was granted to co-accused Manish Sisodia and K. Kavitha, Nair is in a better position than they were because he was already granted bail for the predicate offence. He also drew attention to the fact that Nair has been behind bars for 22 months and that the Prevention of Money Laundering Act (PMLA) Sections 3 and 4 carry a maximum sentence of seven years and therefore, it will not be appropriate to continue the detention.

Contentions of the Respondent –

Additional Solicitor General SV Raju stated that Nair served as a go-between for accepting bribes from individuals who obtained alcohol licenses on behalf of the other accused, including the deputy chief minister and minister of policy. He referred to the PMLA’s Section 45 threshold bar, which sets strict requirements for granting bail in certain situations. He maintained that the accused’s innocence must be established beyond a reasonable doubt before considering bail. He argued that Nair’s case was different from K Kavitha’s, claiming that she was entitled to the proviso under PMLA Section 45(1). Additionally, he argued that the prosecution could not be held responsible for the trial’s delays because the petitioner had to file multiple applications.

The opposition counsel’s submissions are considered record. Article 21 of the Constitution guarantees the right to liberty, which is an inalienable right that must be upheld even whenever strict clauses are included in the special  enactments. The petitioner in this instance has been in custody for more than 22 months and his detention while awaiting trial cannot be the case’s method of punishment.

Court Analysis and Judgement –

The Hon’ble Court took note of the fact that, in contrast to his earlier statements, Nair had been implicated by accused turned approver Dinesh Arora in his twelfth statement. The petitioner has been detained for roughly 23 months, the Hon’ble Court noted, and the ED has filed nine prosecution complaints in the case. The Hon’ble Court also pointed out that the trial in Manish Sisodia’s case has not started, despite the ED’s October 30, 2023, assurance that it would be finished in eight months. The Hon’ble Court stated that about 350 witnesses will be questioned by the prosecution, and about 40 more people have been added to the list of accused.

The Hon’ble Courtcited a judgment that granted Manish Sisodia bail, emphasizing that the strict provisions of Section 45 of the PMLA could not supersede the fundamental rights to liberty and a prompt trial guaranteed by Article 21 of the Constitution.

The Hon’ble Court reaffirmed that it could not be justified to imprison an undertrial for a prolonged period of time without starting the trial, particularly since the maximum sentence for conviction is seven years. As a result, the Hon’ble Court gave Vijay Nair bail.

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