Himachal Pradesh High Court

Decided On : 06.08.2024 vs Enforcement Directorate Office (Ed) on 6 August, 2024

Author: Virender Singh

Bench: Virender Singh

                                          1                              2024:HHC:6386

    IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

                                              CrMP(M) No.           : 1662 of 2024
                                              Decided on            :    06.08.2024


Hitesh Gandhi                                                           ...Applicant

                                          Versus

Enforcement Directorate Office (ED)                                     ...Respondent


Coram
The Hon'ble Mr. Justice Virender Singh, Judge.
Whether approved for reporting?1


For the applicant                 : Mr. N.S. Chandel, Senior Advocate,
                                    with Mr. Jyotirmay Bhatt, Advocate.

For the respondent : Mr.     Balram    Sharma,    Deputy
                     Solicitor General of India, with Mr.
                     Ajeet Singh Saklani, Advocate,
                     assisted by Mr. Sunil Kumar,
                     Enforcement Officer and Neeraj
                     Garg, Assistant Enforcement Officer,
                     Directorate of Enforcement, Shimla.


Virender Singh, Judge. (Oral)

By way of the present application, filed, under

Section 483 of the Bharatiya Nagarik Suraksha Sanhita,

2023 (hereinafter referred to as the 'BNSS'), a prayer has

been made to release applicant-Hitesh Gandhi, on interim

Whether Reporters of local papers may be allowed to see the judgment? Yes.

2 2024:HHC:6386

bail, in case No. ECIR/SHSZO/04/2019 dated 22.07.2019,

registered with the Enforcement Directorate Office (ED),

Sub-Zonal Office, Rani Villa, Bagrian House, Strawberry

Hills, Chhota Shimla, Shimla, Himachal Pradesh, on the

ground that he is the Director of various Companies, i.e.

Walia Trading Ltd., Faradays Industries Pvt. Ltd., Indigo

Fincap Pvt. Ltd., Pandoga Education and Research

Foundation, Rashma Finance Pvt. Ltd., K.C. Land and

Finace Ltd., Sutlej Service Station Ltd., KC Trust, KC

Society, Khushal Chand Education Society Dagham and all

the said Companies have to file the Income Tax Return.

2. According to the applicant, he is the only

person having the knowledge about the accounts of the

said Companies.

3. Earlier, the applicant had filed CrMP (M) No.

2636 of 2023 for grant of regular bail, before this Court,

however, the same was dismissed, by this Court, vide order

dated 12.01.2024.

4. Thereafter, vide order dated 28.06.2024, passed

in CrMP(M) No.1264 of 2024, the jail authorities were

directed to take the applicant to the hospital, where, his 3 2024:HHC:6386

uncle was stated to be admitted and in pursuance of the

directions of this Court, the applicant was taken to the

hospital, where, his uncle was admitted.

5. Also, vide order, dated 9th July, 2024, passed y

this Court, in CrMP (M) No. 1470 of 2024, six days' interim

bail, with effect from 16.07.2024 to 21.07.2024, was

granted to the applicant.

6. On the basis of above facts, a prayer has been

made to allow the present application.

7. In the status report, filed by the respondent, the

grounds, upon which, the case has been registered, have

been reiterated by pleading that:

7.1. The matter revolves around a scam, involving

the allocation of scholarships to SC, ST and OBC students,

under the Post Matric Scheme. In this fraudulent activity,

officials from the Department of Higher Education,

alongwith private Educational Institutions and Banks,

were involved, which has resulted into misappropriation of

scholarship funds of more than ₹ 200 crore.

7.2. The applicant, according to the stand, taken by

ED, along with others, has played a major role in the scam, 4 2024:HHC:6386

wrongfully withholding the rightful scholarship entitlement

of the scholarships of the students, belonging to SC, ST

and OBC students of Himachal Pradesh. According to ED,

they have diverted the said funds into their pockets/

accounts. 22 institutions are stated to be involved. In this

regard, ED has relied upon the charge sheet submitted by

CBI. The investigation is stated to be going on to unearth

the illicit money and ascertain the proceeds of crime (PoC),

obtained by way of this scam.

7.3. After recording the reasons to believe in writing,

the applicant and his co-accused were arrested by ED on

30th August, 2023, under Section 19 of PMLA, in the said

ECIR. Thereafter, they were produced before the Special

Designated Court (PMLA), Shimla, on 31 st August, 2023,

and the learned Special Court, after perusal of all the

documents, including the arrest memo, grounds of arrest,

reasons to believe and material for formation of such belief,

has granted five days' ED custody, with a direction, to

produce the accused persons before the Special Court on

4th September, 2023, on which date, they were produced 5 2024:HHC:6386

before the Special Court and were remanded to judicial

custody.

7.4. It is the further case of the ED that

investigation is on-going and is at crucial stage, which

requires gathering of additional evidence, examination of

voluminous records and recording of statements of several

persons associated with the applicant and other accused

persons related to the case.

7.5. The prayer, so made by the applicant, has

further been opposed, on the ground that the offences,

under the PMLA, are different offences, as such, constitute

class apart and need to be dealt with different approach, in

the matter of bail.

7.6. According to the ED, the offence, under

investigation, requires detailed investigation to unearth the

material and in such circumstances, if bail is granted, it

would defeat the case of the prosecution. The twin

conditions, as per Section 45 of the PMLA, are also stated

to be not satisfied, in this case.

7.7. Elaborating their stand, it is the case of the ED

that CBI registered Fir No. RC0962019S0002, dated 7 th 6 2024:HHC:6386

May, 2019, under Sections 409, 419, 465, 466 and 471

IPC, against the unknown persons. As per the allegations

of the said case, there were complicity of individuals from

State Government Education Department, Bank Officials

and private institutions. Misappropriation in the

disbursement of scholarship funds, in large scale, has also

been alleged. The offences, under Sections 419 and 471

IPC, are also stated to be scheduled offences, mentioned in

the schedule, appended to PMLA and as such, inquiry was

initiated.

7.8. The applicant is stated to be the Vice Chairman

of KC Group of Institutions at Pandoga, Una and

Nawashehar, Punjab. According to the ED, during the

course of investigation, it has been revealed that KC Group

of Institutions, Pandoga and Nawashehar, in connivance

with the officials of Directorate of Higher Education,

Himachal Pradesh and Bank officials, have fraudulently

availed the scholarship, under the Post Matric Scheme, for

SC/ST/OBC of Himachal Pradesh.

7.9. According to the ED, the applicant has verified

and claimed the scholarship under Post Matric Scheme, for 7 2024:HHC:6386

the students, belonging to SC/ST/OBC, who were not

enrolled in any course, with KC Group of Institutions

Pandoga and who had left the institute without completing

their studies. In order to grab more and more scholarship,

false details of students were uploaded on scholarship

portal, by changing the course of study in subsequent

years, by changing the caste category of students and by

showing the students as hosteler, instead of day scholars.

Such false details were verified by the staff of KC Group of

Institutions Pandoga and scholarship was claimed from the

Directorate of Higher Education.

7.10. The applicant is alleged to have supervised the

entire work related to admission and claim of scholarship,

under Post Matric Scheme, for SC/St/OBC students of

Himachal Pradesh of KC Group of Institutions, Pandoga

and Nawashehar. According to the ED, the applicant was

joint account holder in bank accounts, alongwith his father

Prem Pal Gandhi, in which, illegally obtained scholarship

amount got transferred from the bank accounts of the

students.

8 2024:HHC:6386

7.11. It is the further allegation of the ED that the

applicant, so far has obtained proceeds of crime to the

tune of ₹ 4.42 crore, through KC Group of Institutions,

Pandoga.

7.12. Apart from this, it has been apprehended that

the applicant may influence the witnesses, who, are his ex-

employees and also hamper the investigation to trace

remaining proceeds of crime.

8. On the basis of above facts, a prayer has been

made to dismiss the application.

9. It is worthwhile to record herein that in view of

the reply filed by the ED, the applicant was directed to file

requisite affidavit to show that he is still the Director of

M/s Walia Trading Limited. The said affidavit has now

been filed, wherein, it has been recorded that the applicant

is still the Director of ten Companies, as detailed in the

said affidavit.

10. Moreover, the applicant was also ordered to be

released on interim bail on previous occasion also, which

liberty has not been misused by the applicant.

9 2024:HHC:6386

11. Considering the given facts and circumstances,

of the case, this Court is of the opinion that the prayer of

the applicant for interim bail can be allowed.

12. It has also been submitted by learned Senior

Counsel that the applicant is ready to abide by, any

condition, which would be imposed by this Court, in case,

interim bail is allowed in favour of the applicant.

13. It is not in dispute that the passport of the

applicant is with the Central Bureau of Investigation in

case No.RC0962019A0002 dated 07.05.2019, under

Sections 409, 419, 465, 466, 467 read with Section 120B

of Indian Penal Code and Sections 13(1)(c), 13(1)(d) read

with Section 13(2) of the Prevention of Corruption Act.

14. Considering this fact, this Court is of the view

that the interim bail application is liable to be allowed, as

such, his application is allowed, so that the applicant

could be able to file the Income Tax Returns of the

Companies, of which, he is the Director.

15. Consequently, the applicant is ordered to be

released, on interim bail, on and with effect from 7 th

August, 2024 till 15th August, 2024, in the case, as 10 2024:HHC:6386

mentioned above, on his furnishing personal bail bond, in

the sum of ₹ 2,00,000/-, with two sureties, in the like

amount, to the satisfaction of learned trial Court. This

order, however, shall be subject to the following conditions:

a) The applicant shall not tamper with the prosecution evidence nor hamper the investigation of the case in any manner whatsoever;

b) The applicant shall not make any inducement, threat or promises to any person acquainted with the facts of the case so as to dissuade them from disclosing such facts to the Court or the Police Officer;