Investigation by several law enforcement agencies into charges of money-laundering by a former BSP MlC from Uttar Pradesh, Haji Mohammad Iqbal, has revealed that the politician found holding stakes in 111 companies was indulging in suspect transactions of sums running into thousands of crores of rupees.
The disclosure came after investigation reports by the Central Board of Direct Taxes (CBDT), Serious Frauds Investigation Office (SFIO) under Ministry of Corporate Affairs and the Enforcement Directorate were submitted to the apex court in sealed cover on Monday. The court after examination of the reports allowed the agencies to submit further progress of investigation after three months.
Dealing with a petition filed by a public interest litigant Ranvir Singh who revealed the details of the firms held by Iqbal, the bench of Chief Justice TS Thakur, Justices R Banumathi and UU lalit was convinced that the matter required further probe.
Appearing for the probe agencies, Additional Solicitor General (ASG) Maninder Singh submitted that the SFIO had conducted a preliminary probe into the 111 companies and found links establishing Iqbal’s stake in the companies held through his sons, daughters, brother-in-law, friends and associates. In few cases, SFIO found out that some out of the 111 companies shared common addresses. In others, the agency found that at the given addresses no such company or business existed.
The Income Tax authorities too informed the Court that a prima facie investigation into transactions carried out by 33 out of the 111 companies alleged to be held by Iqbal showed huge money transfer of over Rs 1,000 crore between the companies.
Iqbal’s lawyer, senior advocate P Chidambaram, denied any link to the companies and said that the PIl was a pure case of “political rivalry” brought up by the petitioner who himself had several criminal cases pending against him. While the Court agreed to examine into cases against Singh, Chidambaram’s appearance made the Court wary of Iqbal’s innocence. In a lighter vein, the Court said, “When Chidambaram appears in a matter for a person facing such serious charge, it shows there is much to be investigated.” The Court said there is nothing to hide for a person who is innocent. While the agencies sought permission to file the next progress report in sealed cover, bench said, “Nothing should be kept secret about persons who engage in money laundering.”