Yes Bank- DHFL case: HC clubs CBI, ED cases, to be tried by PMLA court

Mumbai: The Bombay High Court on Thursday directed that the trials against Yes Bank founder Rana Kapoor and DHFL promoter Kapil Wadhawan in the cases registered by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) be conducted together before the special ED court. 

The order was passed by Justice RG Avachat while relying on a recent Supreme Court order in Rana Ayyub’s case, wherein the apex court had directed for the cases to be tried together. The highest court had laid down the law, it was required to be followed, said Justice Avachat. 

Petitions filed by Kapoor and Wadhawan

The HC was hearing petitions filed by Kapoor and Wadhawan challenging an order of the sessions court refusing to transfer the trial in the CBI case before the special judge trying cases under the Prevention of Money Laundering Act (PMLA). 

The two had earlier filed a plea before the principal sessions judge seeking transfer of the CBI case to PMLA court. However, it was rejected saying that the accused, Kapoor and Wadhawan, could not make such a request. Only the investigating agency could file such a request. The principal sessions judge also pointed out that such a request, if made, had to be made before the CBI judge where the scheduled offences were being tried. 

Thereafter, ED filed an application before the CBI Court, which was also rejected by the Court in July 2021. 

Hence, Kapoor, Wadhawan and the ED approached the High Court challenging the orders. 

ED did not object to the transfer

The two accused claimed that the PMLA court was competent to try offences of both CBI and PMLA. 

“The intention of legislature in contemplating trial of the cases under the scheduled offence and the offence under Section 4 PMLA by the same court is that accused should not face multiple prosecutions and the dual agony of trial as the case registered by the Enforcement Directorate is nothing but an offshoot of the main scheduled offence case and the substratum of the both the cases remain the same” the petitioners contended. 

While seeking clubbing of the trials, they further contended that since there were a number of common accused, common witnesses and common documents, it would save the accused the agony of dual trial. 

While ED did not object to the transfer, CBI contended that there was no notification which permitted PMLA courts to try offences under the Prevention of Corruption Act. 

Justice Avachat allowed the petitions. A detailed order will be passed later.