NEW DELHI: In a significant decision on Thursday, the Appellate Tribunal constituted under the Prevention of Money Laundering Act (PMLA), presided over by Member Shri V. Anandarajan, issued a directive to the Enforcement Directorate (ED) to release a BMW X7 luxury vehicle seized from the Delhi residence of Jharkhand Chief Minister Hemant Soren.
The seizure, executed on January 29, 2024, was part of an ongoing investigation into an alleged land scam linked to money laundering involving CM Soren, as he maintained that the said high end luxury car was neither belong to him nor he or his family members used it.
The Tribunal’s order, with its detailed reasoning still pending, mandates the release of the vehicle within six weeks, while preserving the ED’s right to take further action if new evidence linking the car to the case emerges.
This ruling marks a significant development in a high-profile case that has drawn considerable attention due to its political and legal implications.
The BMW X7 -- at a price tag of Rs 1.30 crore -- in question was seized on January 29, 2024 during a raid conducted by the ED at Soren’s Delhi residence as part of an investigation under the PMLA, centered on allegations of a land scam in Jharkhand.
The ED’s probe aimed to uncover whether properties or assets, including the seized vehicle, were linked to “proceeds of crime” as defined under the PMLA. The case has been politically charged, given Soren’s stature as a prominent leader of the Jharkhand Mukti Morcha (JMM) and his tenure as Chief Minister of Jharkhand.
Soren himself was also even arrested in connection with the case but was granted bail by the Jharkhand High Court in June 2024, a decision later affirmed by the Supreme Court in July 2024.
The PMLA Appellate Tribunal allowed the appeal filed by Bhagwandas Holdings Pvt. Ltd (BHPL), the registered car owner of the BMW X7.
The company, represented by advocates Rajesh Inamdar, Rohit Sharma and Shashwat Anand, argued that neither BHPL nor its directors had been named as accused in the Enforcement Case Information Report (ECIR) or the prosecution complaint filed by the ED.
It was emphasized by the counsel of the that the seized vehicle had never been identified or proven to be “proceeds of crime,” a critical requirement under the PMLA for justifying the retention of seized assets.
It was further contended that the ED had failed to produce any material evidence linking the BMW X7 to money laundering, despite the investigation spanning over 1 year and 9 months since the seizure.
The ED, represented by advocate Himanshu Jain, strongly opposed the appeal, defending the seizure of the BMW X7.
The ED argued that the investigation into the alleged land scam was still ongoing and that the vehicle could potentially be linked to illicit activities under scrutiny.
The agency urged the Tribunal to uphold the seizure, asserting that releasing the car prematurely could hinder the investigation. However, the ED’s arguments did not provide specific evidence tying the vehicle to the alleged money laundering, relying instead on the broader scope of the ongoing probe.
After hearing arguments from both sides, the PMLA Appellate Tribunal, under Member Anandarajan, ruled in favor of BHPL.
The Tribunal held that the ED’s continued retention of the BMW X7 could not be justified in the absence of concrete evidence linking the vehicle to the proceeds of crime. The decision underscored the legal principle that seizures under the PMLA must be supported by substantive evidence, particularly when assets belong to entities not directly implicated in the alleged offense.
The Tribunal directed the ED to release the vehicle within six weeks, ensuring that the company could reclaim its property without further delay. However, in a balanced approach, the order also granted the ED the liberty to take appropriate action if new evidence emerges in the future that establishes a connection between the vehicle and the alleged money laundering activities. The detailed order, which is expected to provide further clarity on the Tribunal’s reasoning, is yet to be released.
The Chief Minister’s arrest in January 2024 had sparked significant controversy, with allegations of political vendetta leveled against the ED’s actions. Soren’s bail, first granted by the Jharkhand High Court in June 2024 and later upheld by the Supreme Court in July 2024, was seen as a setback for the ED’s case.