The Bombay High Court has denied default bail to Sanjay Chhabriaa, a realtor embroiled in a money laundering case connected to Yes Bank. The court's decision hinged on the intricate nature of money laundering cases that necessitate in-depth investigations, and the Enforcement Directorate's (ED) ongoing inquiry. Chhabriaa had argued for default bail based on the ED's submission of its prosecution complaint within the mandated 60 days, but the ED sought permission to continue the investigation. This case underscores the complexity of money laundering and the need for comprehensive scrutiny in such matters.
The Bombay High Court has declined to grant default bail to realtor Sanjay Chhabriaa in a case involving alleged money laundering linked to Yes Bank. This decision was made based on the complex nature of money laundering cases, which necessitate in-depth investigations. Chhabriaa had sought default bail, arguing that the prosecution's complaint had been submitted within the required 60-day period but further investigation was still underway.
Justice M S Karnik, in his ruling on October 9, acknowledged the Enforcement Directorate's (ED) contention that while the inquiry into Chhabriaa had been completed, the investigation into the entire case was still ongoing. The court concurred with the ED, emphasizing that money laundering cases involve intricate, interconnected transactions, demanding comprehensive investigations. Karnik explained that money laundering involves intricate processes designed to make illegally acquired funds appear legitimate, and its complexity depends on the sophistication of the methods used to disguise illicit funds.
Chhabriaa's involvement in the case revolves around his alleged role in diverting illegally obtained funds by Yes Bank's founder, Rana Kapoor, and Dewan Housing Finance Limited (DHFL) promoter Kapil Wadhwan. The court noted that the ED was conducting further investigations related to the broader offense of money laundering in the case, and there were no restrictions on conducting such investigations to bring forth additional evidence.
Chhabriaa's lawyer, Vibhav Krishna, had argued that since the investigation was incomplete even after 60 days since Chhabria's arrest, the accused should be entitled to default bail. Chhabriaa was arrested by the ED on June 7, 2022, in connection with the Yes Bank-DHFL money laundering case. The ED submitted its prosecution complaint on August 4, 2022. However, the builder claimed that the charge sheet was incomplete and had been filed on the 59th day of his arrest merely to obstruct his right to claim default bail.
Krishna pointed out that Chhabriaa had already been granted default bail in the Central Bureau of Investigation's (CBI) corruption case related to the same offense by the Supreme Court in April. He had sought bail in the ED's case after a special court had denied his request in August the previous year.
In response, Additional Solicitor General Devang Vyas opposed the plea, asserting that the investigation related to Chhabriaa was complete, but the overall case was still under investigation.
The court accepted the ED's position, concluding that there were no restrictions on conducting further investigations in the case to gather additional evidence.
This ruling highlights the intricate nature of money laundering cases and the need for thorough investigations. It reaffirms that complex money laundering cases involve multiple levels of transactions, requiring detailed investigations. As Chhabriaa's bail plea was rejected, he must await further proceedings in this complex case.
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