HC sets aside ED case against firm that built Maharashtra sadan in Delhi

The ACB had filed case in 2015 against current Cabinet minister Chhagan Bhujbal and 16 others following PIL in HC that sought probe over alleged irregularities in granting of contract of over Rs 100 crore for three projects in 2006 when Bhujbal was then state Public Works Department (PWD) minister.

The contracts in question awarded to Chamankar Developers pertained to construction of a state guest house in Malabar Hill, Maharashtra Sadan in New Delhi and a new Regional Transport Office building in Andheri. Based on ACB probe, subsequently ED registered seperate money-laundering case.

Bhujbal and seven others were discharged in the ACB case by the special court in September, 2021.

A division bench of Justices Ajey S Gadkari and Rajesh S Patil passed verdict on plea by the firm along with its partners Krishna Shantaram Chamankar and Prasanna Shantaram Chamankar seeking directive to quash and set aside the Enforcement Case Information Report (ECIR), chargesheet and all consequential proceedings against the petitioners Advocate Shreeyash Lalit argued that the petitioners were discharged by trial court on July 31, 2021 from predicate offence registered by ACB and the said order was not challenged by the ED in the last over four years, therefore attained finality.

Lalit argued that the trial court had found that the firm had constructed Maharashtra Sadan at Delhi, High Mount Rest House and other buildings of RTO as per the contract and discharged the petitioners as there was no material against them.

He submitted that as per the 2022 Supreme Court verdict, as the petitioners have been finally discharged from the scheduled offence, there can be no money laundering case against them, therefore the ECIR be quashed and set aside.

Advocate Manisha Jagtap, representing ED, however, opposed the plea and submitted that even if the petitioners are discharged from the predicate offence, the prosecution under Prevention of Money Laundering Act (PMLA) would continue.

The bench noted that the order discharging petitioners from predicate offence had attained finality.
“According to us, the conclusion enumerated by the SC in the case of Vijay Madanlal Choudhary squarely applies to the petitioners and therefore the ECIR and the chargesheet filed thereof, registered by ED qua the Petitioners, deserves to be quashed and set aside,” the HC held and allowed the plea.