Supreme Court dismisses journalist Rana Ayyub’s plea challenging summons in money laundering case

The Supreme Court on Tuesday dismissed journalist Rana Ayyub's plea challenging the jurisdiction of a Ghaziabad court to summon her in a money laundering case registered by the Enforcement Directorate (ED). A bench comprising Justice V Ramasubramanian and Justice JB Pardiwal allowed Ayyub to raise the issue of jurisdiction in the trial court, saying it was a question of evidence.

Citing Section 3 of the Prevention of Money Laundering Act (PMLA), the apex court said that Navi Mumbai, where the account is, is said to be where the proceeds of crime have gone. “The question whether one or more activities (under section 3 of the PMLA) took place and the question of fact and place must be decided on the evidence. We therefore leave petitioner the opportunity to raise these issues in the trial court. The writ petition will be dismissed," the court said.

Under Section 3 of the PMLA, whoever directly or indirectly attempts to indulge or knowingly aids or is knowingly a party to or is actually engaged in any process or activity connected with the proceeds of crime and projects the same as untainted property, shall be guilty of an offence of money laundering. Citing lack of jurisdiction when the alleged money laundering offense took place in Mumbai, Ayyub sought quashing of the proceedings initiated by the Ghaziabad ED.

The Supreme Court had earlier reserved its verdict after hearing submissions from Ayyub's lawyer Vrinda Grover and Solicitor General Tushar Mehta, who appeared for the ED. Mehta said that the crime of money laundering is not an independent offense and is always linked to a planned crime for which an FIR has been lodged at the Indirapuram police station in Ghaziabad and that part of the action originated in Ghaziabad. A special PMLA court in Ghaziabad took cognizance of a charge sheet (charge) complaint filed by the ED and summoned Ayyub, saying that Ayyub's alleged crime involved illegally siphoning off money from the general public in the name of charity through online crowdfunding platform Ketto in three campaigns, without any approval, to collect a huge amount in her sister and father's bank account and transfer it to her own bank account which was not used for its intended purpose.

In its charge sheet filed against Ayyub, the ED accused her of defrauding the public and using the fund she received for charity (Rs 2.69 million) to create personal assets and also violating the Foreign Contribution Act. According to the ED, the campaigns were to raise funds for slum dwellers and farmers, relief work for Assam, Bihar and Maharashtra and help Ayyub and her team help those affected by the coronavirus in India.