The Supreme Court on Tuesday refused to interfere with the Bombay high court order granting bail to former Maharashtra home minister Anil Deshmukh in a money laundering case.
The Nationalist Congress Party leader Deshmukh, arrested on November 2, 2021, will not be released from Arthur Road jail in Mumbai as of now, as he is also facing a corruption case registered by the Central Bureau of Investigation (CBI).
A bench of Justices D Y Chandrachud and Hima Kohli said the observations made by the high court in its order will not affect the trial in the case and dismissed the appeal filed by the Enforcement Directorate (ED).
During the nearly two hour-long hearing, Solicitor General Tushar Mehta, appearing for ED, submitted the high court has erred in its finding and almost conducted a mini trial on a bail petition.
He claimed evidence of the case was selectively discussed by the high court which resulted in perverse finding.
"It was said that admissibility of evidence and character of this evidence will not result in conviction of the accused," Mehta said, adding the apex court needs to set aside the order as the observations made therein will have far reaching consequences in money laundering cases.
The bench said the high court may have to go into these details as the threshold in the Prevention of Money Laundering Act is so high that the court has to record prima facie satisfaction on innocence of the accused.
On October 4, the high court had granted bail to the former minister in the case 'observing two components of credits' in the bank account of his family trust were not the proceeds of crime.
The HC had, however, stayed the implementation of its order till October 13 after the ED submitted it will challenge the order in the Supreme Court.
Two components of credits (Rs 10.42 crore and Rs 1.12 crore) in the account of a trust controlled by the Deshmukh family, flagged by the ED, were 'not proceeds of crime', a single-judge bench of the high court had said in the order.
At Tuesday's hearing, the Supreme Court said the accused is 73 years old and suffers from various ailments requiring him to be twice admitted to the hospital and therefore bail order could be sustained on the health grounds.
Mehta, however, contended all his ailments were lifestyle ailments and nowhere it has been suggested that he is required to be hospitalised.
"An ordinary accused would not have got bail with these ailments and old age as a ground but a high profile accused, who has defalcated crores of rupees and misused his official position, is being granted bail. This will send the wrong message. Money laundering is a serious offence and needs to be dealt with sternly," he said.
Mehta said dismissed Maharashtra police officer Sachin Waze claimed in his statement before the magistrate that Deshmukh asked him to collect money from 1,750 bars in Mumbai at the rate of Rs 3 lakh each per month.
"We have found the trail of money, which has been routed through shell companies to an organisation headed by the accused," he said, adding Waze's application for turning into an approver is pending consideration by the trial court.
The bench said since Waze was under suspension for 17 years and is an accused in a murder case, it would be difficult for the court to rely on his statements.
Senior advocate Kapil Sibal, appearing for Deshmukh, said all transactions, which the ED has been referring to, have been made through proper banking channels and everything stands accounted for.
Sibal said the high court rightly granted him bail as the statement of an person like Waze cannot be relied upon.
The high court had also said the statements given by former Mumbai Police commissioner Param Bir Singh and Waze alleging that Deshmukh had taken money from police officers for favourable postings were 'prima facie hearsay'.
The HC had noted the possession of unaccounted property acquired by legal means may be actionable for tax violations, yet will not be regarded as proceeds of crime unless it constitutes an offence which is included in the Schedule governing the crime.
Deshmukh, was home minister in the previous Maharashtra Vikas Aghadi (MVA) government.
The ED has alleged Deshmukh misused his official position and collected Rs 4.70 crore from various bars and restaurants in Mumbai.
The money was channelled to Nagpur-based Shri Sai Shikshan Sansthan, an educational trust controlled by the Deshmukh family, it alleged.
Former Mumbai police commissioner Param Bir Singh had alleged.
