Kerala High Court Closes Bail Plea Of Businessman Who Accused ED Officer Of Bribery, Agency Says No Intention To Arrest Him

The petitioner had been summoned to appear before the Assistant Director, ED Special Investigating Team at New Delhi in connection with Crime No. KCZO/14/2025. As per the notice, he was asked to bring all the documents relating to the Vigilance Case. It is further mentioned in the notice that failure to appear and give evidence will lead to proceedings under Prevention of Money Laundering Act, 2002 and other provisions of BNS, 2023.

Today, when the case came up, the standing counsel for the ED submitted that the petitioner was summoned as an informant in the case and that there is no intention to arrest the petitioner. Recording the same, the bail application was closed.

Earlier, the petitioner was directed by the High Court to appear before the Investigating Officer pursuant to the summons. As per the direction, the petitioner had appeared before the ED. The High Court had also issued a direction not to arrest the petitioner till the next posting date of the case.

Background

Certain cases were filed against the petitioner and his parents in 2020 and 2021 after the company, Vazhavila Cashews, registered in the petitioner's mother name could not fulfil a contract entered into with certain persons regarding supply of imported cashews. As per the petitioner, this occurred as an export ban was imposed in Tanzania after he entered into an agreement with a Society in Tanzania. He said that he had paid the Society 2.5 million dollars, which he lost after the ban. The petitioner stated even after that, they supplied a part of the promised quantity by suffering a huge financial loss.

Subsequently, ED filed a case against the petitioner and his parents under Section 3 of the Prevention of Money Laundering Act in 2021. The petitioner and his parents were called to the office. As per the petitioner, thereafter, there was no communication from 2021 to 2024. In October 2024, the petitioner was called to the office and was threatened with arrest if all the documents relating to the alleged diversion were not produced.

As per the petitioner, subsequently, a person named Wilson Varghese, who claimed to be sent by the ED officer, demanded a bribe of Rs. 2 Crores to settle the case. As per the allegation, to prove his credentials, Wilson told the petitioner that he would receive a notice from ED to appear before it on 14th May. Subsequently, the petitioner states, he received an email and a phone call from ED office asking him to appear before them. The Vigilance officers laid a trap and caught Wilson while he accepted an amount of Rs. 2 Lakh as a part payment towards the total amount. The petitioner had filed a Vigilance case thereafter and at present, Vigilance has registered a case against 4 people including the Assistant Director.

Case Title: Aneesh Babu v. Assistant Director, ED

Case No: Bail Application No. 7121 of 2025

Citation: 2025 LiveLaw (Ker) 340

Counsels for the Petitioner: Liju V. Stephen, Indu Susan Jacob, Taj K.Tom, Abhijith U.

Counsels for the Respondent: Jaishankar V. Nair, SC - Enforcement Directorate 

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