The Enforcement Directorate (ED) told a Special Court under PMLA that AAP leader Deepak Singla’s phone was seized, but he refused to share its password.During a remand hearing on May 20, the ED said that a search of Singla’s premises on May 18 was conducted, during which Rs 25 lakh unaccounted cash and one mobile phone were recovered, but the accused, despite a number of opportunities, failed to provide its password. It added that the phone “is believed to contain crucial and sensitive information relating to the layering and transactions of the proceeds of crime.”The Special Court under the PMLA granted ED a six-day custody of Singla on May 20. He will be produced again on May 26.Deepak Singla is AAP’s Goa in-charge and had contested on the AAP ticket from Vishwas Nagar constituency in Delhi in 2020 and 2025. He was arrested on May 18.The initial FIR in the matter was registered by the CBI on account of large-scale fraud amounting to Rs 155.21 crores at the Oriental Bank of Commerce, Karnal branch. During further investigation, it was found that four banks had been defrauded to the tune of Rs 239.46 crores.The ED said that during its investigation, it was found that M/s Mahesh Timber Private Limited, owned by Ashok Mittal, the maternal uncle of Deepak Singla, had allegedly defrauded banks of public money. Another firm, M/s Amazon Export Pte Limited, was allegedly used to layer and siphon off the amount, with Raman Singla, brother of Deepak Singla, as a director.The Special Judge under PMLA, Panchkula, Vijayant Sehgal, observed that Deepak Singla was the Director of M/s Mahesh Timber Private Limited, a subsidiary of M/s Mahesh Resources Private Limited and M/s Traffic Media India Private Limited. “These entities were used in siphoning off part of the proceeds of crime. During the investigation, properties valued at Rs. 11.54 crores were attached, while approximately Rs. 143 crores in proceeds of the crime remained to be traced or recovered.”The judge added, “No doubt, in the present case, the FIR of the scheduled offence was registered around eight years back and a charge-sheet was also filed around six years back. It is also admitted that the investigation in this case was initiated by the ED in 2021. However, that in itself cannot be a ground to declare the arrest of the accused illegal and set him at liberty, as such a step would cause irreparable prejudice to the Investigating Agency, which has been empowered to carry out further investigation.”As per the ED, there is a Memorandum of Understanding executed between Deepak Singla and co-accused Ashok Mittal wherein the mention of the German Account is reflected, and Singla might have parked the funds in his other offshore accounts, which is not in their knowledge.Counsel for Deepak Singla said that he has a fundamental right to privacy and cannot be compelled to disclose the password of his mobile phone to the ED, and that this cannot be a ground for effecting his arrest.Role of Deepak SinglaED told the court that Deepak Singla was a Director of M/s Traffic Media India Pvt. Ltd, along with his brother, Harish Singla.M/s Traffic Media was involved in the purchase of timber from M/s Mahesh Timber Pvt Ltd. Simultaneously, Deepak Singla’s brother, Raman Singla, was a Director in M/s Amazon Export Pte Ltd (AEPL), which was supplying timber and associated goods to M/s Mahesh Timber Pvt Ltd.ED told the court that during the course of the investigation, the books of accounts and ledger records of M/s Mahesh Timber Pvt Ltd were examined, which revealed that M/s Traffic Media purchased “Timber” and “Imported Timber” from it over a substantial period of time.ED added that the CBI investigations with the findings and report of the Director General of Systems and Data Management, Central Board of Indirect Taxes and Customs (CBIC), had conclusively established that a majority of the Bills of Entry, Bills of Lading, and other import-related documents submitted by M/s Mahesh Timber Pvt Ltd were “fake, forged, and fabricated”.“The investigation has further established that no genuine importation of timber had actually taken place in respect of several transactions claimed by M/s Mahesh Timber Pvt Ltd. In view of these findings, it is evident that M/s Mahesh Timber Pvt Ltd could not have been in possession of the so-called “Imported Timber” allegedly sold to M/s Traffic Media India Pvt Ltd,” said ED.“Consequently, the transactions recorded in the books of accounts showing sale and purchase of imported timber between M/s Mahesh Timber Pvt Ltd and M/s Traffic Media India Pvt Ltd appear to be fictitious, sham, and without any underlying genuine movement of goods,” ED added.