NEW DELHI: In a significant decision, the appellate tribunal constituted under the Prevention of Money Laundering Act issued a directive to the Enforcement Directorate to release a BMW X7 luxury vehicle seized from the Delhi residence of former Jharkhand Chief Minister Hemant Soren.
The tribunal presided over by Member V Anandarajan passed the order on September 25, 2025.
The seizure, executed on January 29, 2024, was part of an ongoing investigation into an alleged land scam linked to money laundering.
The Tribunal’s order mandated the release of the vehicle within six weeks, while preserving the ED’s right to take further action if new evidence linking the car to the case emerges.
This ruling marks a significant development in a high-profile case that has drawn considerable attention due to its political and legal implications.
The BMW X7 in question was seized on January 29, 2024 during a raid conducted by the ED at Soren’s Delhi residence as part of an investigation under the PMLA, centered on allegations of a land scam in Jharkhand.
The ED’s probe aimed to uncover whether properties or assets, including the seized vehicle, were linked to “proceeds of crime” as defined under the PMLA.
The case has been politically charged, given Soren’s stature as a prominent leader of the Jharkhand Mukti Morcha (JMM) and his tenure as Chief Minister of Jharkhand. Soren himself was arrested in connection with the case but was granted bail by the Jharkhand High Court in June 2024, a decision later affirmed by the Supreme Court of India in July 2024.
The appeal before the PMLA Appellate Tribunal was filed by Bhagwandas Holdings Pvt Ltd, the registered owner of the BMW X7. The company, represented by Advocates Rajesh Inamdar and Rohit Sharma, argued that neither Bhagwandas Holdings Pvt Ltd, nor its directors had been named as accused in the Enforcement Case Information Report (ECIR) or the prosecution complaint filed by the ED.
It was emphasised by the counsels, that the seized vehicle had never been identified or proven to be “proceeds of crime,” a critical requirement under the PMLA for justifying the retention of seized assets.
It was further contended that the ED had failed to produce any material evidence linking the BMW X7 to money laundering, despite the investigation spanning over one year and nine months since the seizure.
The Enforcement Directorate, represented by advocate Himanshu Jain, strongly opposed the appeal, defending the seizure of the BMW X7.
The ED argued that the investigation into the alleged land scam was still ongoing and that the vehicle could potentially be linked to illicit activities under scrutiny. The agency urged the Tribunal to uphold the seizure, asserting that releasing the car prematurely could hinder the investigation. However, the ED’s arguments did not provide specific evidence tying the vehicle to the alleged money laundering, relying instead on the broader scope of the ongoing probe.
The tribunal ruled in favor of Bhagwandas Holdings Pvt Ltd. It held that the ED’s continued retention of the BMW X7 could not be justified in the absence of concrete evidence linking the vehicle to the proceeds of crime. The decision underscored the legal principle that seizures under the PMLA must be supported by substantive evidence, particularly when assets belong to entities not directly implicated in the alleged offense.
The Tribunal directed the ED to release the vehicle within six weeks, ensuring that the company could reclaim its property without further delay. However, in a balanced approach, the order also granted the ED the liberty to take appropriate action if new evidence emerges in the future that establishes a connection between the vehicle and the alleged money laundering activities.
The former Chief Minister’s arrest in January 2024 had sparked significant controversy, with allegations of political vendetta leveled against the ED’s actions. Soren’s bail, first granted by the Jharkhand High Court in June 2024 and later upheld by the Supreme Court in July 2024, was seen as a setback for the ED’s case.
Disclaimer: This content is produced and published by LawStreet Journal Media for informational purposes only and does not constitute legal advice. The views expressed are independent of any legal practice of the individuals involved.
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