Bombay High Court quashes PMLA case against lawyer in Anil Deshmukh corruption row

The Bombay High Court has quashed the money laundering case against Nagpur-based lawyer Kishore Pessulal Dewani in the case linked to alleged kickbacks involving former Maharashtra home minister Anil Deshmukh. [Kishore Dewani v. ED & Anr.].Justice Ashwin Bhobe held that the Enforcement Directorate (ED) failed to show any connection between Dewani’s property transactions and the proceeds of crime allegedly generated in the corruption case against Deshmukh and others.Dewani approached the court challenging an order of the special court under the Prevention of Money Laundering Act (PMLA), which took cognisance of ED’s complaint against Dewani and issued notice. .Justice Bhobe set aside the order and also quashed the complaint against Dewani after noting that transaction of 2005 and 2007, ex facie, cannot have any connection with the proceeds of crime, as the acts allegedly part of the scheduled offence, took place during the period 2020-2021. “Even assuming ED’s case that the moneys were transferred to the Trust account of the principal accused, Anil Deshmukh, from 2013, the property purchased in 2005-2007 would still have no connection to the proceeds of crime”, the Court held. .ED’s case arose from a CBI FIR registered on April 21, 2021 against Deshmukh and unknown others for alleged illegal collections from bar owners in Mumbai between 2020 and 2021. This led to an ED complaint which named Dewani as a director associated with Premier Port Links Pvt Ltd, a company that had purchased around 20 acres of land at Dhutum village in Maharashtra between 2004 and 2008. .ED alleged that about ₹2.20 crore had come into Premier Port Links from Flourish Properties Pvt Ltd, allegedly linked to the Deshmukh family and that Dewani had assisted in concealment and laundering.Justice Bhobe found no material to show that the Dhutum land had any remote connection with the alleged tainted funds or that Dewani was involved in any process connected with proceeds of crime as defined under PMLA. .The order also took exception to the special court issuing notice without demonstrating the application of mind. “The test of ‘sufficient ground for proceeding’ against Dewani is not satisfied. No reasons are found to conclude that there is prima facie ground to proceed against Dewani”, the high court noted and granted relief to Dewani. .Senior advocate Sunil Manohar with advocates Pralhad Paranjape, Sakshi Jogdand, briefed by advocate Omkar Prashant Mulekar, appeared for Dewani. Additional public prosecutor Pallavi N Dabholkar appeared for State.Special counsel Prashant Mishra and advocates Bharat Jadhav and Krish Kariya appeared for ED. [Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.