Court accept closure report in money laundering case against firm linked to BJP functionary

Mumbai, Jan 7 (PTI) A special court here has accepted the Enforcement Directorate's closure report in a probe into a firm linked to BJP functionary Mohit Kamboj, noting that the case was not maintainable since a "scheduled offence" had been dismissed by a magistrate court in a CBI FIR.

The ED case against Tenet Exim Private Limited originated from an FIR registered in 2020 by the Central Bureau of Investigation (CBI) based on a complaint by the Central Bank of India.

Earlier, a magistrate court had accepted the CBI's closure report in September 2024.

The special judge under the Prevention of Money Laundering Act (PMLA), RB Rote, passed an order last month, noting that since a "scheduled offence" has been dismissed, the continuation of the money laundering case was "not maintainable".

The bank had alleged criminal conspiracy and cheating involving Tenet Exim Private Limited.

The ED's application for closure emphasised that no "proceeds of crime" could be identified or attached during their probe.

Under the relevant provision of the PMLA, an offence of money laundering cannot exist in the absence of a scheduled offence, the plea said.

The ED also maintained that after a detailed probe, the investigating machinery concluded that there is a lack of sufficient evidence to prosecute the accused borrower company and its directors.

The informant bank has not raised any objection or dispute about the observations made by the investigating machinery in the closure report, it added.

The PMLA judge observed that the magistrate had accepted in the schedule offence holding that there is no sufficient material to proceed against the accused.

The court pointed out that the CBI had not preferred any appeal against the order passed by the magistrate. Hence, the CBI's closure report attained finality.

Since the scheduled offence has been disposed of and no material has been found attributing the accused to the offence of money laundering, the continuation of the ECIR (ED's case) is not maintainable, the PMLA court ruled.

According to the probe agency, Kamboj, then chairman and managing director of Tenet Exim Private Limited, and several others allegedly cheated the Central Bank of India to the tune of Rs 103 crore by submitting false documents to avail of a credit facility. PTI AVI NSK