Rana Ayyub used donation money for personal luxuries, pleasure: ED tells SC

Mehta argued that the ED cannot go and file a case in Thiruvananthapuram or Singapore if an offence is committed over there

New Delhi, Feb 01: The Enforcement Directorate on Tuesday told the Supreme Court that Rana Ayyub had used money sought for the welfare of slum dwellers, the fight against COVID-19 and for some work in Assam had used it for her personal enjoyment, luxuries and pleasures.

Arguing on behalf of the Enforcement Directorate, Mehta was opposing a petition filed by Ayyub who had challenged the summons issued to her by a Ghaziabad court in connection with a Prevention of Money Laundering (PMLA) case.

A Bench comprising Justices V Ramasubramanian and J B Pardiwala reserved orders in the matter.

Appearing for Ayyub, advocate Vrinda Grover argued that her client cannot be deprived of her personal liberty by a procedure not authorised by law.

Grover said that the ED has attached Ayyub's personal bank account at HDFC in Navi Mumbai which has around Rs 1 crore. Since Ayyub resides in Navi Mumbai, the Ghaziabad court does not have the jurisdiction to try the case.

Grover further said that her client's personal liberty is being threatened and the issuance of summons is not legally authorised. She also argued that the special court should be set up in the jurisdiction where the offence has been committed.

Grover also questioned the complaint by Vikas Pandey, a member of the Hindu IT cell and said that he has no valid complaint as he has not been defrauded by her.

Mehta on the other hand contended that Ayyub had sought over Rs 1 crore in the name of donations and transferred Rs 50 lakh to a fixed deposit. She even continued receiving money despite the campaign getting over.

Our investigation has revealed that the money was misdirected and used for her personal indulgence, personal luxuries and pleasures. People were donating large sums without knowledge of where the money was being directed, Mehta also told the Bench.

Mehta also submitted that the Enforcement Directorate filed a prosecution complaint in the Ghaziabad court as part of the cause of action that arose in Uttar Pradesh where many individuals, including those Ghaziabad contributed money to her crowdfunding campaign.

He said that the offence of money laundering is not a standalone crime and is always tied to a listed offence for which an FIR was filed at the Indirapuram police station in Ghaziabad.

The Solicitor General also said that Rana Ayyub had used fake bills for groceries and others to show the expenses, but the same had been used for personal luxury items.

This is not the scheme of the law Mehta said while arguing if someone chooses to launder money in Singapore or Thiruvananthapuram, will the ED have to go and file a case there.

On January 25, the Supreme Court had directed the Ghaziabad court to defer its hearing in the case, following the summons it had issued to Rana Ayyub on January 27