https://www.livelaw.in/top-stories/supreme-court-dismisses-eds-plea-to-cancel-bail-of-former-maharashtra-dy-cm-chhagan-bhujbal-in-money-laundering-case-281544

The Supreme Court on Tuesday (January 21) dismissed pleas by Directorate of Enforcement seeking bail cancellation of former Maharashtra Deputy CM and current NCP MLA Chhagan Bhujbal and his nephew Sameer in a money laundering case connected to the Maharashtra Sadan scam.

“Impugned orders granting bail have been passed way back in the year 2018. Therefore, at this stage no case for interference is made out under Article 136 of the Constitution of India. The SLPs are dismissed”, the Court held.

A bench of Justice Abhay Oka and Justice Ujjal Bhuyan also disposed of a plea by Bhujbal against the Bombay High Court's 2016 judgment rejecting challenge to his arrest in the money laundering case.

“As the petitioner has been enlarged on bail in 2018, it is not necessary at this stage to go into the question of illegality of the arrest of the petition. However, that issue will remain open which can be agitated by the petitioner at the appropriate stage in an appropriate petition”, the Court held.

Bhujbal is currently Member of Legislative Assembly from Yeola Constituency. When the NCP split, Bhujbal joined the Ajit Pawar camp to be part of the ruling BJP–Shiv Sena coalition.

On December 14, 2016, the Bombay High Court rejected Bhujbal's petition seeking a writ of habeas corpus against his arrest by the ED under the Prevention of Money Laundering Act (PMLA). In May 2018, the Bombay High Court granted bail to Bhujbal, imposing several conditions, including surrendering his passport and not leaving Mumbai without permission.

Bhujbal had been arrested on March 14, 2016, following allegations of money laundering under Section 3 read with Section 4 of the PMLA. His arrest was linked to the alleged irregularities in awarding contracts for the construction of Maharashtra Sadan in Delhi and Kalina Library at Mumbai University during his tenure as Maharashtra's Public Works Department Minister. A public interest litigation filed by the Aam Aadmi Party in 2014 led to the establishment of a Special Investigation Team.

Bhujbal was booked in two FIRs under Sections 420, 471, 120B read with 34 of IPC and Section 13(1)(A), 13(1)(D), 13(2) of Prevention of Corruption Act; and for the offences punishable under Section 420, 120B, 109, 465, 468, 471 read with 34 of IPC and Section 13(1)(C), 13(1)(D) and 13(1) of Prevention of Corruption Act respectively. The Anti-Corruption Bureau (ACB) filed a chargesheet alleging Bhujbal and his family laundered approximately Rs. 900 crores. On the basis of this case, a money laundering case under PMLA was registered against him.

Bhujbal challenged his arrest on grounds of its alleged illegality, citing violations of his fundamental rights under Articles 19 and 22 of the Constitution. His legal team argued that the ED failed to provide proper grounds for the arrest and highlighted the absence of an FIR under the PMLA. The Bombay High Court, however, dismissed his habeas corpus petition, ruling that his arrest and remand were neither wholly illegal nor without jurisdiction.

In March 2018, the Supreme Court issued notice to the Central Government on Bhujbal's plea against the Bombay High Court's decision. The bench questioned the maintainability of the habeas corpus petition filed long after the arrest. Bhujbal's counsel argued that the arrest violated his constitutional rights and that procedural lapses marred the case. The apex court did not grant him bail, opting to hear the government's response first.

In September 2021, a Special Court discharged Bhujbal, his son, and others in the corruption case related to the Maharashtra Sadan scam investigated by the ACB. The court found no prima facie evidence of a conspiracy or illegal monetary transactions involving Bhujbal. Bhujbal contended that decisions on awarding contracts were taken collectively and that allegations of kickbacks were unsupported by evidence.

In December 2021, the Bombay High Court dismissed Bhujbal's challenge to a show cause notice issued by the Income Tax Department regarding income allegedly escaping assessment for the assessment year 2012-13. The allegations linked to this case stemmed from Bhujbal's purported involvement in the Maharashtra Sadan and Mumbai University library scams. The court upheld the IT department's actions, stating that tangible material existed to justify the reopening of assessments.