New Delhi: A Delhi court on Monday granted three days to the Enforcement Directorate (ED) to file its response to a bail application filed by alleged hawala dealer Mohammad Aslam Wani, arrested in a money laundering case involving Kashmiri separatist Shabir Shah.


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The accused, who was earlier refused the relief, has moved a fresh bail plea, citing a recent Supreme Court judgement striking down a stringent condition for securing bail in money laundering cases.


Additional Sessions Judge Sidharth Sharma posted the matter for December 1 after the advocate appearing for the central probe agency said he needed time to go through the apex court judgement.


The application said the court had denied the bail while applying the rigour of Section 45(1) of the Prevention of Money Laundering Act (PMLA), which was struck down by the Supreme Court last week on the grounds that it was "manifestly arbitrary" and "unconstitutional" as it drastically intruded into the fundamental rights of the accused.


"Since the section has been declared unconstitutional, the present application is being filed in view of this changed circumstance," the application, filed today by advocate M S Khan, said.


The trial court had denied bail to the accused, terming the alleged offence as "grave and serious".


The fresh application filed today submitted that a 2010 trial court judgement clearing Wani of terror funding charges in 2005 case, based on which the current money laundering case was lodged in 2007, was confirmed by the Delhi High Court on October 31.


"The effect of confirmation of acquittal of the applicant (Wani) is that there is no material left to connect him with the co-accused (Shah) as it was not proved that money was recovered or was meant to be used for any illegal purpose (hawala)," the plea said.


The ED had in September filed a charge sheet against Wani and Shah, whose bail application in the case was also dismissed on August 22.


Wani was arrested by the ED from Srinagar on August 6 and is currently in judicial custody. Shabir Shah was arrested by the agency from Srinagar on July 26.


The ED action against the two was in pursuance of an August 2005 case in which the Delhi Police's Special Cell had arrested Wani, who is alleged to have claimed he had passed on Rs 2.25 crore to Shah.


In 2010, a Delhi court had cleared Wani of terror funding charges but convicted him under the Arms Act. The ED had registered a criminal case under the Prevention of Money Laundering Act against Shah and Wani.