HC directs MAG to probe politician expeditiously for money laundering allegations

The Delhi High Court Friday directed the Multi Agency Group (MAG), set up to probe the companies and individuals named in the 'Bahamas leaks' and 'Panama papers leak', to expeditiously investigate the complaints of money laundering and black money against a politician and some of his associates.

These leaks revealed information regarding hundreds of thousands of offshore entities and their connections to companies and individuals, including politicians, in various countries.

The MAG was initially set up in April 2016 by the Centre to investigate the Panama paper leaks.

A bench of Chief Justice D N Patel and Justice C Hari Shankar asked the authorities to investigate the allegations levelled in the petition as per law.

"We direct the respondent no. 1 (MAG) to investigate into the allegations made in the petition, which is otherwise also going on, and complete it as early as possible and as per law," the bench said.

The court's order came while disposing of a plea seeking investigation into complaints of money laundering and black money against a politician, and some of his associates, who allegedly received funds from companies named in the 'Bahamas leaks'.

The petition was filed by Bhupendra Singh Patel who has made the complaints against the politician and some of his companies and associates in January last year.

It alleged that the politician's companies received around Rs 18 crore from some Bahamian shell companies named in the leaks.

Patel has alleged "deliberate inaction" by the MAG and the central government in acting on the "gravely suspicious investments" made in Indian entities by some shell companies incorporated in Bahamas and revealed in the leaks.

The petition has claimed that MAG, comprising officers from the tax department, RBI and other agencies, was formed to ensure speedy and coordinated probe into names revealed in the leaks.

Earlier, after perusing the plea, the bench had observed, "We doubt you (MAG) have moved forward an inch in the matter".

It had directed the head of MAG to file an affidavit indicating under which authority it was functioning, its composition, its powers and jurisdiction and the progress made by it in its investigation into the leaks.

Bahamas leaks comprise of a cache of documents, released by the International Consortium of Investigative Journalists (ICIJ), providing names of politicians, companies and others linked to over 175,000 Bahamian companies registered between 1990 and 2016.

Patel, in his plea, had sought directions to MAG and the ministry to "take cognisance" of the allegations he has made in his complaints, carry out a "speedy probe" into them and "take consequential action".