New Delhi: The Supreme Court on Friday declined to interfere with the proceedings against Pooja Singhal, a 2000-batch IAS officer of the Jharkhand cadre and former Jharkhand Mines Department secretary in a money laundering case linked to alleged irregularities in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana refused to quash the cognisance order passed by the Special PMLA Court in Ranchi. The decision allows the proceedings to continue.
Singhal Challenged Cognisance Order
The case stems from a prosecution complaint filed by the Enforcement Directorate (ED) in July 2022. The Special PMLA Court in Ranchi took cognisance of offences under Sections 3 and 4 of the Prevention of Money Laundering Act on July 19, 2022.
Singhal had approached the Jharkhand High Court seeking to have the cognisance order quashed. The High Court dismissed her plea, holding that prior sanction under Section 197 of the CrPC was not required where the alleged acts were not reasonably connected with the discharge of official duties.
She subsequently approached the Supreme Court.
Defence Raises Section 197 Sanction
Senior Advocate Meenakshi Arora, appearing for Singhal, argued before the Supreme Court that the required sanction to prosecute a public servant under Section 197 of the CrPC had not been obtained.
The defence contended that Singhal was not an accused in the underlying corruption case and that the acts alleged in the money laundering case were connected with her official functions.
Her counsel also raised the applicability of the Bharatiya Nagarik Suraksha Sanhita (BNSS) and the prosecution’s reliance on a provision concerning deemed sanction.
ED Opposes Plea
Additional Solicitor General S.V. Raju, appearing for the ED, opposed the plea and pointed out that cognisance had been taken by the trial court several years earlier.
The prosecution also relied on the BNSS provisions concerning deemed sanction. During the proceedings, the issue of around ₹19 crore recovered during the investigation also came up, with the defence disputing the attribution of the recovered amount to Singhal.
Supreme Court Leaves Sanction Issue Open
The Supreme Court indicated that the question of sanction could not be decided in isolation. It would have to be examined whether the alleged acts were actually performed in connection with Singhal’s official functions.
The Bench therefore declined to quash the cognisance order and left the sanction issue open for consideration at the appropriate stage of the proceedings.
MGNREGA Case and ED Arrest
The money laundering proceedings are linked to alleged financial irregularities in the implementation of MGNREGA in Jharkhand. Singhal, who was then serving as the state’s Mines Department secretary, was arrested by the ED on May 11, 2022, following searches at properties linked to her.
The ED subsequently filed its prosecution complaint against Singhal and several other accused, including her husband Abhishek Jha, chartered accountant Suman Kumar, and officials associated with the alleged MGNREGA irregularities.
Singhal remained in custody for more than two years before securing bail, following which her suspension from government service was revoked.
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