Simply labelling simple civil disputes as ‘money laundering’ or ‘an economic offence’ cannot automatically bestow such status upon these cases, says special PMLA court
Sanjay Raut greets party workers outside Arthur Road jail, on Wednesday. Pic/Shadab Khan
The special PMLA court on Wednesday granted bail to Sanjay Raut and his close associate Pravin Raut in the Patra Chawl case. The court called their arrests illegal and came down heavily on the Enforcement Directorate, saying that the agency had followed a pick-and-choose strategy while arresting them. The court further slammed the investigating agency over its delaying tactics and failure to produce sufficient evidence.
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Raut was arrested in connection with the Rs 1,034-crore case earlier in July and was lodged in jail since. After securing bail, Raut was released from Arthur Road jail on Wednesday evening.
“Simply labelling pure civil disputes as ‘money laundering’ or ‘economic offence’ itself cannot automatically acquire such status, and ultimately drag an ancient person in a miserable situation in the guise of arrest under Section 19 and stringent twin conditions of Sections 45(1)(i) and (ii) of the PMLA (Prevention of Money Laundering Act). The court has to do what is right irrespective of who is before it,” the court stated in the 122-page order. Sections 45(1)(i) and (ii) of PMLA make it hard for the accused to get bail, whereas Section 19 deals with power to arrest people believed to be guilty of an offence punishable under the Act.
Also read: "I'm thankful to court," says Sanjay Raut after getting bail in money laundering case
Sanjay Raut outside Arthur Road jail, on Wednesday. Pic/Shadab Khan
The court also lashed out on the ED for their tactics to delay the trial. “I am constrained to note that, not a single trial right from the establishment of this Designated Court, the ED has concluded by leading evidence, and the Court could not give a single judgment right from the last decade. This Court has submitted a detailed report to the Hon'ble Principal Judge, regarding such modus operandi availed by ED in conducting trials,” Special judge M G Deshpande noted.
“It is necessary to take serious note that Pravin Raut’s bail application has been pending since 05.05.2022 i.e. more than six months, and even Sanjay Raut’s bail application has been pending since 08.09.2022 i.e. more than three months, even if both of them were illegally arrested under Section 19 of the PMLA. Yet, the ED wants to keep those applications pending for an uncertain period. This is very serious.”
It further pointed at the agency’s failure to produce enough evidence. “Even the cases wherein this court has framed charges, could not record evidence more than one-two pages. In this way, the extraordinary pace with which ED arrests accused becomes not even a snail speed in conducting trials. It appears that ED knows only Section 19 and 45 of the PMLA, but forgets that there is a provision for trial of an offence under PMLA as per Section 44.”
The court also raised questions about ED not arresting the main beneficiary and MHADA officials suspected to be involved in the case. By not arresting these people, ED was conveying a message to the then Union agriculture minister and the then CM that they were next in line, the court said.
“Only bald and bare words of Chandan Kelekar (witness in the case) alleging two meetings with the then Union Agriculture Minister and the then Maharashtra CM caused the arrest of Sanjay Raut and formed the basis for Supplementary Complaint. High-level MHADA and government officials had participated in the said meetings as per Mr Chandan Kelekar. Yet, none of them is made an accused or even arrested, in spite of suspicious conduct of MHADA right from 2007 till date. But, only Sanjay Raut was arrested.”
The court further said, “Skipping all officials of MHADA and government i.e. T Chandrashekhar etc. referred by Mr Chandan Kelekar, Wadhawans and Ms Swapna Patkar, is nothing but conveying a message to the then Union Agriculture Minister and then then chief minister, creating fear psyche in their mind that they are the next in this queue. Certainly, this is not an objective and true purport of the PMLA.”
“From the records materials and the detailed discussion, it is clear how Pravin Raut is arrested for a pure civil litigation, whereas Sanjay Raut for no reason. This truth is glaring. The court is under legal obligation and duty to find out the truth even at the stage of bail,” the court said.
The court also pointed out that even main money launderers Rakesh Wadhawan and Sarang Wadhawan, who admitted their misdeeds by making sworn statements in the affidavit before the HC, were not arrested. This, despite the ED arresting them in every other crime they were involved in.
The ED moved an application before the PMLA court to put a stay on the order so they can get time to approach High Court but the court refused.
1,034
Estimated amount (in R crore) in the scam
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