Breaking: Bombay High Court Grants Bail To Anil Deshmukh In Money Laundering Case

Justice NJ Jamadar had reserved his plea for orders on September 28, 2022 after marathon arguments by Senior Advocate Vikram Chaudhri and Advocate Aniket Nikam for Deshmukh, and ASG Anil Singh for the ED. On Tuesday, the court said he shall be released on payment of bail bond of Rs 1 Lakh and surety of like amount.

After pronouncement of the bail order, Additional Solicitor General [ASG] Anil Singh sought a stay on the order for two weeks. The request was opposed by the counsel representing Deshmukh.

Acceding to the request made by Singh, the court said the bail will become effective from Oct 13.

The HC had taken up the bail matter on priority after Deshmukh approached the Supreme Court. The apex court had taken exception to the plea remaining pending for nearly eight months. His lawyers had pointed out that several judges had also recused from hearing the matter.

However, Deshmukh will continue to remain in the prison as he in custody in the CBI case too.

Case Against Deshmukh

Deshmukh was arrested by the ED on November 2, 2021 and booked under Section 3 & 4 of the PMLA Act. In its 7,000 page supplementary charge sheet filed the following month, the agency alleged that the Deshmukh misused his official position as State Home Minister, and collected atleast ₹4.70 crore from various bar owners in Mumbai through dismissed Assistant Police Inspector Sachin Waze. His sons are also accused in the case.

Waze is in judicial custody in the Antilia bomb scare and Mansukh Hiran murder cases. As per the prosecution, Deshmukh and his family members owned several companies which were used to launder the money.

The agency had earlier filed a charge sheet against 14 people, including Deshmukh's private secretary Sanjeev Palande and his Personal Assistant Kundan Shinde. The ED started investigating the case based on the FIR, alleging corruption and misuse of official position, lodged by the Central Bureau of Investigation in April last year.

Arguments

ASG Singh had earlier argued that Waze was the link between Deshmukh and bar owners and was acting at the minister's behest. He had submitted that witness statements suggested there were meetings between Waze, assistant commissioner Sanjay Patil and Deshmukh's private assistant Kundan Shinde regarding the collections.

He also had argued that Deshmukh was unable to explain the source of huge wealth and to explain the proceeds of crime amounting to Rs.1.71 Crore received during the month of Feb, 2021 and March, 2021, in the bank account of the trust Shri Sai Shikshan Sanstha from the companies of Jain Brothers.

The ASG had contended that since PMLA was an economic offence that could affect the country's financial strength, Deshmukh was not entitled to bail. 

Senior counsel Chaudhri, representing Deshmukh, had argued that the central agency's case was dependent on statements made by Waze who stood to gain as he was declared the status of an approver. He had also contended that Waze was allegedly collecting the money for a certain "No. 1" and in the police force it is always the Commissioner who is considered as No. 1. In this case it would be then CP Parambir Singh, he had alleged.

Citation: 2022 LiveLaw (Bom) 373