New Delhi, April 14: Senior advocate Vikas Pahwa has labeled the arrest of Vinay Chandel, co-founder and director of i-PAC, as entirely unjustified. The Enforcement Directorate (ED) apprehended Chandel in Delhi on Monday in connection with a money laundering case linked to the alleged coal scam in West Bengal.
In a conversation, Pahwa stated, “This case began in January 2026 when the ED raided the i-PAC office. Initially, the investigation was based on an old FIR from 2020, along with a charge sheet and previous ECIR by the ED related to the coal scam. Later, the ED realized that i-PAC had no direct connection to the coal scam. Nevertheless, the agency filed a new ECIR and FIR, which led to Chandel’s arrest.”
He clarified that while these matters may involve violations of the Income Tax Act, GST Act, or RBI regulations, they do not constitute a ‘scheduled offense’ as defined under the PMLA. Without a scheduled offense, the ED lacks jurisdiction.
Pahwa remarked, “The ED has created its own locus and based the arrest on that. Vinay Chandel has previously appeared before the ED multiple times as the head of finance at i-PAC. He has visited the agency’s office 3-4 times, submitted all documents, and cooperated fully during questioning. Yet, the ED still arrested him. In my view, this arrest is arbitrary and unnecessary.”
The ED claims that some emails and chats were deleted during the investigation, hindering cooperation. However, the senior advocate countered that receiving fees in cash is not fraudulent.
He added, “If you examine the new FIR, ECIR, and the charges, there appears to be no serious crime. The allegations include receiving 50% of consultancy fees via check and 50% in cash, paying GST, and obtaining loans from non-banking financial companies (NBFCs). Many individuals receive income in cash, which is taxable, but this cannot be classified as money laundering. GST violations or loans from private parties also do not fall under the PMLA, as there is no proven fraud or conspiracy.”
Pahwa raised concerns about the timing of the action, stating, “i-PAC is a professional political consultancy firm that assists with electoral campaigns, strategy, and candidate management. All major political parties utilize its services without discrimination. Currently, elections are underway in states like West Bengal and Tamil Nadu, where i-PAC is advising multiple parties. This could also be a factor.”
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