In a recent development, Supreme Court Justice KV Viswanathan has recused himself from hearing the petitions related to the money laundering case involving the directors of the Gurugram-based realty group M3M.
A vacation bench comprising of Justices Abhay S Oka and KV Viswanathan directed that the matter be presented before an appropriate bench.
The case in question involved a batch of pleas challenging a Delhi High Court order that refused to interfere with the arrest of Basant and Pankaj Bansal, the directors of M3M Group, in connection with a money laundering investigation linked to a bribery case against a former judge. The Bansal brothers were arrested by the Enforcement Directorate (ED) on June 14 and were subsequently sent to five days of custody by a special court in Haryana's Panchkula.
During the hearing, Justice Viswanathan disclosed that he had previously appeared for the co-accused in related matters arising from the case. This prompted him to recuse himself from multiple matters, indicating that when in doubt, it is essential to recuse. Senior Advocate Mukul Rohatgi, representing the Bansals, light-heartedly remarked about Justice Viswanathan's extensive experience as a senior counsel.
The money laundering case against the Bansal brothers originated from an FIR registered by the Haryana Police's Anti-Corruption Bureau (ACB) against former Special Judge CBI/ED, Sudhir Parmar. The ED alleged that Parmar showed favoritism to the accused in a money laundering case involving the real estate firm IREO. As a result, the Punjab and Haryana High Court had suspended Parmar.
In a separate development, the ED filed pleas in the Supreme Court against the Delhi High Court's June 9 order granting Basant and Pankaj Bansal interim protection from arrest until July 5 in connection with the money laundering case linked to IREO. Justice Viswanathan, due to his prior involvement in a connected matter as a lawyer, recused himself from hearing these pleas as well.
The high court's order had come in response to anticipatory bail applications filed by the Bansal brothers. It granted them conditional bail and set a deadline of July 5 for the ED to submit a status report and other relevant documents. The ED had opposed the anticipatory bail pleas, stating that the M3M Group owners were involved in diverting, siphoning off, and misappropriating funds of investors and customers.
The ED has been conducting an investigation into IREO for several years, focusing on allegations of fund diversion and misappropriation. The agency had carried out raids against the M3M Group and IREO on June 1, alleging that substantial amounts of money were siphoned off through the M3M Group. The investigation revealed transactions involving approximately ₹400 crore between IREO and the M3M Group through multiple shell companies.
With Justice Viswanathan's recusal from the case, the matter will now be assigned to an appropriate bench next week. The Supreme Court will continue to deliberate on the petitions challenging the Delhi High Court's orders related to the money laundering investigation and the arrest of the Bansal brothers.
Picture Source :
