The Enforcement Directorate (ED) presented Vinesh Chandel, co-founder and director of the Indian PAC Consulting Pvt Ltd (I-PAC), before a Delhi court late at night, prompting questions from his legal counsel, Advocate Vikas Pahwa. On April 14, a Delhi court approved a request by the ED for a custody period of ten days, lasting until April 23, following Chandel’s arrest on allegations of money laundering and financial misconduct.

Pahwa noted that Chandel was reportedly arrested at approximately 7:45 pm and that his family was informed he would be taken to the Patiala House Court. They arrived around 9:30 pm, only to later discover that he would be presented at the residence of a special judge instead. The proceedings extended until midnight, culminating in an order that was reportedly released around 4 or 5 am.

Within this context, Pahwa highlighted that authorities have an obligation to present an accused within 24 hours of arrest. He expressed confusion over the decision to conduct the court appearance late at night, indicating that there was no necessity for such an arrangement, given the timeframe stipulated by law.

Background of I-PAC and its Operations

I-PAC, a consultancy firm involved in political campaigning, is described by Pahwa as lacking a specific ideology, stating that it assists multiple parties in elections. The firm has reportedly advised various political organisations, including the Bharatiya Janata Party (BJP) and the Indian National Congress, especially during the ongoing elections in West Bengal and Tamil Nadu.

Pahwa pointed out that the investigation into I-PAC began on January 8, when the ED conducted a raid on the firm’s offices in West Bengal. The case allegedly links back to a coal scam from 2020, despite I-PAC having no direct connection to those allegations. Chandel’s legal team contends that the origins of this inquiry date back several years and maintain that previous investigations have already concluded with chargesheets being filed.

Challenges against the ED’s summons have been brought before the Delhi High Court by two other directors with ties to I-PAC. These proceedings are ongoing, with the case listed for further discussion on Friday, amidst new allegations made by the ED regarding a supposed conspiracy and manipulation of financial statements.

Legal Perspectives on Current Allegations

Pahwa expressed doubt regarding the validity of the allegations surrounding violations of the Income Tax Act and Goods and Services Tax (GST), suggesting these do not constitute a scheduled offence under the law. He emphasised that no substantial evidence has emerged to support claims of cheating or financial wrongdoing, asserting that the charges are vague and not fully articulated.

He further clarified that if the allegations are accepted at face value, they would still categorise as violations rather than serious offences warranting custodial scrutiny. According to Pahwa, no cognisable offence has been demonstrated, reiterating his contention that the claims made by the ED lack sufficient foundation.

The ED’s accusations against Chandel suggest an inference of serious financial misconduct, including claims of obscured payments and efforts to delete sensitive emails following initial raids. The agency has highlighted instances of partial financial transactions, identified as “50 per cent cheque” payments, which have raised additional questions during the ongoing investigation.

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