NEW DELHI: Failure of CBI to challenge quashing of a corruption case against UP engineer Arun Kumar Mishra has led to the release of one of the biggest properties ever attached by Enforcement Directorate (ED) in Delhi — of a 6,796 sq ft bungalow on Prithviraj Road allegedly belonging to Mishra. The case pertains to a scam in Uttar Pradesh State Industrial Development Corporation (UPSIDC) which allegedly involved laundering of more cash than 2G scam.

The attachment has been quashed by Delhi high court on the ground that the CBI case does not stand anymore and all witnesses in the ED case have turned hostile. The CBI’s case against Mishra was quashed by Uttarakhand High Court on October 13 last year with controversial IPS officer Ranjit Sinha heading the agency then. But even after more than six months, the agency has not appealed against the order. Sources say it may no more be able to appeal as the same is “time barred”.

ED had attached the bungalow at Prithviraj Road as it belonged to a Kolkata-based company, Ajantha Merchants Pvt Ltd, which the agency claimed was a front for Mishra as his relatives were on its board of directors. Though on paper the property cost was shown at Rs 24 crore (in 2007), even the circle rate was calculated to be close to Rs 150 crore while market value is estimated to be Rs 240 crore. ED’s entire case was based on the FIR registered by CBI against Mishra under Prevention of Corruption Act.

The Delhi HC order, issued by Justice Ved Prakash Vaish on April 9, says, “After carefully examining all the facts and records of the case, including statements of witnesses and… the order of the Uttarakhand HC quashing the entire proceedings against the accused (Arun Kumar Mishra)… the court finds no merit in allegations of the respondent. …Consequently, the provisional attachment of properties of the petitioner (Ajantha Merchants) does not hold good and the respondent (ED) is directed to release the properties and give the possession back to the petitioner.”

A senior ED official said, “Our argument that quashing of CBI FIR had no bearing on our investigation was rejected by the court. We will challenge the decision.”

The attachment on August 30, 2013 had caused a flutter as given his relative humble job profile as the chief engineer of the UPSIDC, Mishra was an unlikely owner of such a large bungalow on Prithviraj Road – a stretch which houses top industrialists and diplomatic missions.

ED sources alleged that Mishra bought the property when he was looking after the development of Tronica City, an industrial and residential township stretching over 1,400 acres in Ghaziabad.

According to ED, through 66 fictitious bank accounts and a maze of shell companies, Arun Kumar Mishra laundered over Rs 225 crore between 2006 and 2007. The ED case file reveals the entire sum is graft money and circulated much the same way as in the case of 2G scam. In the 2G scam, Rs 200 crore were allegedly given to Kalaignar TV by Shahid Balwa’s Swan Telecom using a circuitous route that ED says amounted to laundering.

TOI | Apr 25, 2015

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