Anil Deshmukh, NCP leader and former Maharashtra home minister, granted bail in money laundering case

MUMBAI: The Bombay high court on Tuesday granted bail to the Nationalist Congress Party (NCP) leader and former Maharashtra home minister Anil Deshmukh in a money laundering case.
The bail was granted on a bond and surety of Rs 1 lakh.
The high court said the bail order would be operative from October 13. The ED had asked for a stay of the bail order as it wanted to go into appeal. The court said it couldn't stay but would be effective from October 13 considering that currently, the Supreme Court is on vacation.
As one of the reasons for granting bail, the HC said the amounts received by Anil Deshmukh's family-run Trust Sai Seva Sanstha could not be treated as proceeds of crime.
Deshmukh is still in custody in the anti-corruption case against him filed by the Central Bureau of Investigation (CBI). His plea for bail, in that case, is pending.
He has misused his official position as the home minister, the Enforcement Directorate (ED) through additional solicitor general Anil Singh had argued before Justice N J Jamadar, during the arguments last month to oppose the bail plea.
Singh had cited statements to show former cop Sachin Waze was collecting money from Mumbai’s restaurants and bars at his behest.
The ED said, “Waze was the link between bar owners and Deshmukh and Waze being the one personally aware has confirmed that the acts were being done on behalf of and at the behest of the applicant (Deshmukh)".
Deshmukh’s counsel Vikram Chaudhri with advocates Hargun Sandhu and Aniket Nikam seeking his bail had argued, “the bar owners have made categorical statements before the Central Bureau of Investigation that the bar money was collected by Waze in the name of ‘No. 1’ and No. 1 is CP".
But the ED opposing the bail plea said, "Even if the statements are read as it is, all that is stated by the bar owners is that "in common parlance" No. 1 would mean the commissioner of police. The statements do not say that the bar owners/restaurant owners are aware that No. 1, in this case, was any one other than the applicant. Further, it is also evident from the statements of Sachin Waze, and ACP Sanjay Patil that the CP is referred to as King and not No 1".
Deshmukh’s counsel also questioned "a red carpet treatment" given to Waze saying “It is strange and shocking that the principal accused Sachin Waze is being sought to be made an approver by both the CBI and the ED".
Deshmukh said he was incarcerated for more than 10 months, since November 2, 2021, and had several health ailments while ED was relying on statements of witnesses who are "of tainted character", including former cop Sachin Waze.
Deshmukh’s counsel said rigours of section 45 of Prevention of Money Laundering Act (PMLA) –that makes getting bail difficult — will not apply against Deshmukh given his health ailments requiring “constant medical supervision and treatment".
Chaudhri said Deshmukh was a man of impeccable character with a clean past and the ED had no evidence of acceptance of any bribe or paying any bribe by any person or recovery of any cash.
The ASG Singh said, "Case is based not on a solitary statement of Waze but ED has recorded about 50 statements, including that of Sachin Waze, Sanjeev Palande, Ravi Shivaji Vhatkar, Sitaram Kunte, IAS, Param Bir Singh, Sudhir Baheti, Surendra Jain and police officers. About 39 searches were conducted and seizures have been made. Analysis of various bank accounts has been done including that of Shri Sai Shikshan Sanstha wherein proceeds of crime have been parked and based on that money trail has been derived".
He said Waze’s statement against Deshmukh was corroborated and borne out by the other statements.
The ED 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 February, 2021 and March 2021, in the bank account of the trust Shri Sai Shikshan Sanstha from the companies of Jain Brothers.
"The statements of Jain brothers and CA Baheti who have alleged the loan/donations given by the companies to the trust as mere accommodation entries in lieu of cash are equally tenuous and do not inspire any confidence," argued Deshmukh’s counsel Chaudhri, adding "allegation of hobnobbing with transfers and postings of police officials by him is equally unfounded".
The ED said statements of "Palande and Shinde had to be read as part of the entire testimony and materials that had been produced and not in isolation. These statements when read with the other material clearly showed that there was illegality in the transfer and postings of the police".
Deshmukh’s counsel also argued that the police establishment board comprising the highest officials of the State including the Additional Chief Secretary, DGP as well as the commissioner of police and all the board members had “unanimously signed the recommendations".
Moreover, the home minister being the competent authority could always have overridden the recommendations.
None of the officials has alleged any quid pro quo or payment of bribe for transfer of posting, argued his counsel.
Chaudhri also argued that the ED investigations are "perfunctory, biased and with a preconceived notion" and that "liberty of the applicant has been invaded in a most high handed manner".
He also argued that any past transactions i.e. prior to his tenure as Home Minister cannot fall within the scope of ‘ Proceeds of Crime’ as there is no schedule/predicate offence for any previous acts of omission and commission by him. Chaudhri said the entire case against Deshmukh is to "malign, defame, harass and humiliate him".
The ED, through ASG Singh, argued that as explained in the Complaint, it was on the instructions of Anil Deshmukh, the then home minister of the state of Maharashtra that Sachin Waze has collected Rs 40 lakh in December 2020 as ‘good luck money’ from various orchestra bar owners/managers.
It added that Waze on the home minister's directions collected Rs 1.64 crore in January and February 2021 from various orchestra and bar owners in Zone I to Zone VII of Mumbai police commissionerate.
The ED also relied on Waze’s statement made last year to allege that a sum of Rs 20 crore had also been received by Deshmukh during his tenure as the home minister in lieu of the illegal transfers.