Punjab Former Minister's Arrest Upheld: PH High Court Cites ₹63 Million in Disproportionate Assets in Money Laundering Case

Punjab and Haryana High Court dismissed a petition by Sadhu Singh Dharamsot, a former Punjab Forest Minister, challenging his arrest in a money laundering case. The petition sought to quash the arrest order dated January 15, 2024, issued by the Directorate of Enforcement (E.D.) under the Prevention of Money Laundering Act (PMLA). The court found no merit in the petition, citing substantial evidence of disproportionate assets and bribery, allegedly amounting to over ₹63.91 million.

Sadhu Singh Dharamsot was implicated in multiple corruption cases involving bribery and embezzlement during his tenure as the Punjab Forest Minister. He was first arrested in connection with two FIRs registered in 2022 under the Prevention of Corruption Act (P.C. Act) and the Indian Penal Code (IPC) for illegal activities, including bribery related to cutting Khair trees and manipulating forest department procedures​.

Subsequent investigations led the E.D. to file an Enforcement Case Information Report (ECIR) under the PMLA, linking these crimes to money laundering activities. Dharamsot was arrested again in January 2024, which led him to file the present petition challenging the legality of his arrest.

The petitioner argued that the arrest order and related grounds were illegal, alleging non-compliance with Section 19 of the PMLA, which mandates supplying specific grounds for arrest. The defense also contended that Dharamsot had cooperated with the investigation and that there was no fresh evidence to justify his arrest.

The court dismissed these arguments, emphasizing that the petitioner had amassed significant disproportionate assets during his tenure as minister, estimated at over ₹63.91 million. This included properties and bank accounts in the name of his family members, who had no independent sources of income​.

The court found that the E.D. followed the proper procedure under the PMLA. The "grounds of arrest" were duly conveyed to Dharamsot in Hindi and Punjabi, and the reasons to believe were submitted to the Adjudicating Authority in compliance with the law. The court also noted that multiple witnesses, including contractors and officials, had confirmed the payment of bribes to the petitioner during his tenure​​.

The High Court concluded that there was ample evidence of the petitioner's involvement in money laundering and dismissed the petition, allowing the E.D. to continue its investigation. The court directed the Special Judge to expedite the trial, noting that the complaint had already been filed and cognizance taken in March 2024.

Date of Decision: September 20, 2024

Sadhu Singh Dharamsot vs. Directorate of Enforcement