Upendra Rai Bail Battle: SC Seeks Response on ED’s Money Laundering Plea

The Supreme Court has issued a notice to journalist Upendra Rai, asking him to respond to the Enforcement Directorate's (ED) appeal against the Delhi High Court's July 2020 bail order in a money laundering case involving alleged extortion and financial irregularities. A bench headed by Chief Justice SA Bobde gave Rai time to submit his reply, the latest turn in a legal fight that has gone on for more than three years.

Case Background

Rai was originally arrested by the CBI on May 3, 2018, for charges of financial fraud, procuring an airport access pass with false credentials, extortion, and tampering with an Income Tax case against a Mumbai businessman. Within a matter of days of obtaining bail in the CBI case, he was again arrested by the ED on June 8, 2018, under the Prevention of Money Laundering Act (PMLA).

Delhi High Court's Bail Order

In July 2020, the Delhi High Court released Rai on bail after 13 months of imprisonment, referring to a lack of evidence of tampering and prolonged detention. Bail terms prohibited him from exiting India or prejudicing witnesses. This was challenged by the ED, which argued that bail in the predicate CBI case should not assure relief in the PMLA case.

Legal Arguments & Allegations

Rai’s counsel accused the CBI and ED of a “vindictive approach”, claiming agencies kept him jailed despite no need for further interrogation. The ED, however, maintains that the PMLA case involves distinct charges requiring separate scrutiny. Rai denies all allegations.