Shift Unitech promoters out of Tihar jail: SC
NEW DELHI: The Supreme Court on Thursday ordered former Unitech promoters, Sanjay Chandra and Ajay Chandra, to be immediately shifted out from Delhi’s Tihar Jail after the Directorate of Enforcement (ED) claimed that the accused in collusion with jail authorities were using the jail precincts to engage in illegal activities, share proceeds of crime and influence witnesses with a view to derail the investigation against them.
Terming the allegations presented in a sealed cover by the Directorate of Enforcement (ED) “serious and disturbing”, a bench of justices Dhananjaya Y Chandrachud and MR Shah directed the Director General of Police (DGP) of Maharashtra to make arrangements to lodge the two brothers separately at Mumbai’s Arthur Road Jail and Taloja Central Jail.
Coming down upon Tihar Jail authorities, the bench remarked, “We have lost faith in Tihar Jail authorities. They are absolutely shameless. Sitting in the Capital, they can do this under our nose.”
On August 16, ED wrote to Delhi Police commissioner seeking an inquiry into the alleged collusion of Tihar jail authorities with the Chandra brothers.
Wondering why the commissioner of police waited for 10 days to take action on such a serious issue, the court directed the Delhi Police chief to personally take up the investigation to begin forthwith and submit a report in four weeks on the “complicity of all officers (of Tihar Jail) who acted in violation of law” as detailed in the ED letter.
The Delhi Police did not respond to the SC order. A senior police officer, who asked not to be named, said the crime branch team headed by the joint commissioner rank officer is likely to start the inquiry on Friday. Until late Thursday night, the probe team was yet to reach Tihar.
The bench said, “What concerns us is that if the allegations are true, it is the jurisdiction of this Court that is undermined by the complicity shown by jail officials.
The record indicates that despite Court’s order, activities are taking place within precincts of jail having propensity to undermine jurisdiction of this Court and derail investigation.”
The court referred to its May 9, 2019 order by which all additional facilities provided to the Chandras at Tihar Jail were to be recalled.
Appearing for ED, additional solicitor general (ASG) Madhavi Divan said, “They have rendered the judicial custody otiose by operating from inside the jail. They are freely communicating instructions and their person is deputed outside the jail premises. They have tried to influence a director (of the company) during his interrogation by the ED.”
“What is happening in Tihar Jail?” the bench asked Additional
Solicitor General (ASG) KM Nataraj who was representing Delhi Police. “The contents of the August 16 communication raise serious and disturbing issues. As head of department, the Commissioner of Police was duty bound to have started an enquiry. He ought not to have wasted a single day in the case of such serious allegations,” the judges observed. ASG Nataraj agreed to file an enquiry report.
The Chandra brothers are facing prosecution since 2015 in separate cases accusing them of cheating homebuyers of their hardearned investments in 74 Unitech housing projects. A forensic audit ordered by the Supreme Court in 2018 revealed that the two diverted ₹1,749 crore to foreign countries.
ED in its sealed cover report to court said as part of the search and seizure during investigation, the agency unearthed a “secret underground office” which was visited by both Sanjay and Ajay Chandra whenever they came out on bail or parole.
“Several computers seized from the office contain sensitive data with regard to properties in India and abroad. An intricate web of money trail has been linked to shell companies and many of the properties situated abroad are being disposed,” ASG Divan said. ED also recovered hundreds of original sale deeds and digital signatures from the office. So far, ED reported to have provisionally attached assets of the company worth ₹600 crore.
The Court also noted that investigation by ED was proceeding on a “tardy pace” and sought a fresh status report in four weeks.
The Chandras were represented in Court by senior advocates Vikas Singh and Siddharth Dave. Revealing the address of the secret office claimed by ED, Singh said it was their office in Green Park, and its address is available on the Ministry of Corporate Affairs website. On the issue of alleged collusion with jail authorities, Singh pointed out that facilities provided to the two accused was as per their entitlement under Jail Manual. He referred to a December 2019, suo moto proceeding by Delhi high court which upon examination of benefits provided to Chandras found them to be as per Prison Rules 2018.
Singh argued that ED’S claims are aimed at prejudicing the court against granting the accused bail to which they were entitled. he also argued that Unitech was not a “fly-by-night operator” and had delivered “100,000 flats”.
Sanjay Chandra’s lawyer told the Court that while in jail, he sought permission to write books and communicate with his son studying abroad. The bench replied, “We are conversant with human rights attached to prisoners but what we have here is not that.”
We have lost faith in Tihar Jail authorities. They are absolutely
shameless.