Delhi Court acquits retired Major General Anand Kumar Kapur in PMLA case, directs release of attached properties

Babushahi Network

New Delhi, August 26, 2026 (ANI): A Delhi court has acquitted retired Major General Anand Kumar Kapur in a money-laundering case, holding that the Enforcement Directorate (ED) failed to establish the existence of "proceeds of crime" and consequently failed to prove the offence under the Prevention of Money Laundering Act (PMLA).
The court also directed the ED to release any properties attached in the case and de-freeze Kapur's bank account, if not already done, within four weeks.
District Judge, North-East District, Karkardooma Courts, Colette Rashmi Kujur, in her judgment, held that the prosecution had failed to establish the essential ingredients of the money-laundering offence.
The court took note of the Delhi High Court's July 1, 2026 judgment setting aside Kapur's conviction in the underlying disproportionate-assets case.
The court observed that once the predicate offence itself did not survive, the alleged assets could not be treated as "proceeds of crime" for sustaining the PMLA prosecution. It accordingly acquitted Kapur of the offence under Section 3, punishable under Section 4 of the PMLA.
The court further directed cancellation of Kapur's bail bond and discharge of his surety. It directed him to furnish a personal bond and surety bond of Rs 1 lakh under Section 437-A CrPC for six months.
The case originated from allegations that Kapur, while serving in different capacities in the Indian Army, had accumulated assets disproportionate to his known sources of income. The ED alleged that assets worth Rs 3.37 crore constituted proceeds of crime generated through criminal activity.
The agency had provisionally attached several properties and a portion of a bank account, treating them as alleged proceeds of crime. The attached assets included properties in Defence Colony, Ansal Plaza, Gurgaon, Munirka and Shimla, besides the bank account.
However, the court found that the foundation of the PMLA case had been undermined by the subsequent outcome of the predicate proceedings. It noted that the Delhi High Court had set aside Kapur's conviction in the disproportionate-assets case and had found, among other things, that the prosecution failed to establish the alleged disproportionate assets in accordance with law.
The court also dealt with the issue of sanction for prosecution. It noted that the PMLA complaint had been filed without obtaining sanction and that the ED had failed to place any sanction order on record even by the conclusion of the proceedings.
Advocate Shashank Dewan, who represented Kapur, had also appeared for the accused during the proceedings, along with the other members of his legal team.
The court rejected the prosecution's contention that sanction was unnecessary merely because the alleged money-laundering offence was a continuing offence.
It examined the allegation that the assets had been accumulated while Kapur was serving in the Army and held that the prosecution had failed to demonstrate the necessary connection between the alleged acts and the statutory requirements concerning sanction.
On the central issue of proceeds of crime, the court held that merely alleging possession of disproportionate assets was not sufficient. The prosecution was required to establish the underlying criminal activity and demonstrate the nexus between such criminal activity and the property alleged to constitute proceeds of crime.
The court relied upon the principles governing the PMLA and observed that the offence of money laundering is dependent upon the existence of property derived or obtained from criminal activity relating to a scheduled offence. In the absence of established proceeds of crime, the charge of money laundering could not be sustained.
The judgment also scrutinised the evidence concerning individual properties relied upon by the ED and found deficiencies in the prosecution's attempt to establish that the properties represented proceeds of crime. The court noted, among other aspects, deficiencies concerning proof of certain property-related documents and the failure to establish that the purchase consideration had originated from an illegal source.
The court further took note of the evidence of prosecution witnesses. Some witnesses admitted that the documents and financial details supplied by Kapur during the investigation had not been independently verified. The court therefore found that the prosecution evidence did not establish the required link between the assets and any criminal activity.
In view of the acquittal in the predicate case and the failure of the ED to prove the existence of proceeds of crime, the court concluded that the prosecution had failed to establish the charge under the PMLA.
The court consequently acquitted Kapur and directed consequential release of the attached properties and de-freezing of the bank account within four weeks.
Following the acquittal, a statement issued on behalf of Kapur said he expressed "profound relief and gratitude" after the conclusion of the PMLA prosecution launched by the ED.
The statement said Kapur had maintained "unflinching faith" in the judicial system throughout the prolonged proceedings and that the judgment had reaffirmed that faith and brought "long-awaited justice" to him and his family.
It further said that Kapur and his family were deeply grateful to those who stood by them during the long and difficult legal journey. The statement was issued by Advocate Shashank Dewan, counsel for Maj. Gen. (Retd.) Anand Kumar Kapur. (ANI)