Explained: Anil Deshmukh arrested; what is the ED case against him?

According to the ED, out of this, about Rs 4.18 crore was then deposited in cash with four Delhi-based shell companies – Reliable Finance Corporation Pvt. Ltd, VA Realcon Pvt. Ltd., Utsav Securities Pvt. Ltd. and Sital Leasing and finance Pvt. ltd. These firms subsequently donated the entire money to Shri Sai Shikshan Sansthan Trust, a charitable trust headed by Anil Deshmukh and his family.

Anil Deshmukh at ED Office (Express Photo: Ganesh Shirsekar)

The ED has also alleged that Deshmukh’s Worli flat, registered in the name of his wife Aarti Deshmukh, was bought in cash in 2004 but the sale deed was executed only in February 2020 when Deshmukh was serving as the home minister. Apart from this, the Deshmukh family, according to ED, has acquired the 50 per cent ownership in Premier Port Links Pvt. Ltd. including its assets valued at approximately Rs 5.34 crore by merely paying Rs 17.95 lakh. During the course of its probe, the ED had arrested Deshmukh’s private secretary Sanjeev Palande and private assistant Kundan Shinde in connection with the case. Both Palande and Shinde are currently behind bars.

Waze is being probed by the NIA for his alleged role in the case related to the bomb scare outside industrialist Mukesh Ambani’s residence and the murder of businessman Mansukh Hiran. After being suspended for 15 years for a custodial death case, Waze had rejoined the police force in 2020.

How has Anil Deshmukh responded to the ED allegations?

Deshmukh has denied allegations levelled by the ED since the beginning, calling it a “witch-hunt”. Deshmukh has claimed the handling of the case by the investigating agency has been “non-transparent” and “unfair”. In his latest statement released yesterday, Deshmukh said he has always complied with the law of the land however, a false narrative has been created by vested interest against him.

“On account of a witch-hunt campaign launched at the instance of certain vested inimical interests, some blatantly false allegations have been levelled by those persons who have absolutely no credibility, honour or pride. These unscrupulous persons are themselves knee-deep involved in several rackets of extortion and even murder. The principal person who held the high office of commissioner of police is now a wanted absconding criminal,” said Deshmukh.

Why did Anil Deshmukh join the ED probe on November 1?

Since the beginning of the ED probe in May, the agency has summoned Deshmukh asking him to appear in person before the agency on at least five occasions. However, Deshmukh skipped these summons and instead moved court first to stop the agency from taking any coercive action against him. However, the court refused any relief to Deshmukh. Subsequently, Deshmukh moved another application to quash the ED summons issued to him. After several rounds of hearings, the Bombay High Court on October 29, refused to quash the ED summons against Deshmukh and directed him to appear before the agency. The court allowed Deshmukh’s lawyer to remain present at a visible distance but beyond audible range during the ED questioning. Following the order of the high court, Deshmukh appeared before ED on Monday afternoon, along with his lawyer.

What are the other cases against Deshmukh?

Apart from the ED, Deshmukh is also being probed by the Central Bureau of Investigation (CBI) and the Income Tax (I-T). The CBI is investigating two separate cases against him. The first case pertains to the allegations made by the Mumbai Police commissioner Param Bir Singh against the NCP leader. Singh alleged that Deshmukh exercised “undue influence” over the transfer and posting of police officials and also used Waze to illegally collect Rs 100 crore every month, including Rs 40-50 crore from 1,750 bars and restaurants in Mumbai. The CBI initiated a preliminary probe based on the April 5 HC order and registered FIR on April 21.

Second, the CBI is probing its own sub-inspector Abhishek Tiwari and Deshmukh’s lawyer Anand Daga in connection with the alleged leak of an official report on its investigation into allegations of policemen being coerced by Deshmukh to collect bribes on his behalf. According to the leaked document, which is the purported Preliminary Enquiry (PE) report signed by Investigating Officer DySP RS Gunjiyal, no cognizable offence was made out against Deshmukh.

The Income Tax investigation alleged tax evasion by three educational institutions of a trust owned by the Deshmukh family. The tax authority has alleged that Deshmukh has concealed income of about Rs 17 crore to evade taxes. According to the tax department, the educational institutions have “indulged in inflation” of expenses to the tune of Rs 12 crore. The taxman also said it has found evidence to prove that the trust received “bogus donations” of Rs 4 crore through Delhi -based companies.

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Timeline of the Anil Deshmukh case

March 20: Former Mumbai police commissioner Param Bir Singh alleges that Anil Deshmukh had asked police officers, including the now-dismissed police inspector Sachin Waze, to collect Rs 100 crore, including Rs 40-50 crore each month from 1,750 bars and restaurants in Mumbai.

April 14: CBI records statement of former Maharashtra Home Minister Anil Deshmukh based on allegations made by Param Bir Singh

April 24: CBI registers a FIR against Deshmukh on charges of bribery, corruption and criminal conspiracy. Also searches his residence .

May 11: ED files a money laundering case against Deshmukh for for allegedly obtaining illegal gratification

May 25: ED searches the residence of Sagar Bhatewar, a close aide of Deshmukh

June 24: ED searches the residence of Anil Deshmukh after it finds a money trail of Rs 4 crore, allegedly paid by bar owners in Mumbai to Deshmukh over three months.

June 25: ED arrests Deshmukh’s personal assistant, Kundan Shinde and personal secretary, Sanjeev Palande in the case

June 26: ED summons Anil Deshmukh for questioning in the case

June 29: Deshmukh writes to ED seeking exemption from personal appearance due to the Covid-19 pandemic.

July 3: ED issues second summons to Anil Deshmukh in the case

July 5: Deshmukh writes to ED informing the agency that he has approached the court to ensure the money laundering probe against him is fair.

July 16: ED provisionally attaches immovable assets worth Rs4.20 crore belonging to Deshmukh and his family under the Prevention of Money Laundering Act (PMLA).

July 18: ED searches the ancestral homes of Deshmukh in Maharashtra

July 28: CBI conducts searches on middle men and a few police officers in connection with the case against Deshmukh.

July 30: ED once again summons Deshmukh and his son Hrishikesh Deshmukh asking them to appear before it for questioning.

August 17: ED issues another summons to Deshmukh.

August 18: Deshmukh skips ED summons citing that he has moved court seeking interim relief from any coercive action of ED.

August 23: ED files prosecution complaint (chargesheet) against Palande and Shinde in court.

September 1: CBI arrests its sub-inspector and Deshmukh’s lawyer Anand Daga in connection with the alleged leak of its preliminary enquiry (PE) report against Deshmukh

September 5: ED issues look-out circular against Deshmukh after he skips multiple ED summons

September 17: I-T department searches the residence of Deshmukh for alleged tax evasion of Rs 17 crore

October 11: CBI searches the residence of Deshmukh in connection with the probe into the leak of its PE.

October 29: Bombay High Court refuses to quash ED summons against Deshmukh and directs him to appear before the agency.

October 31: CBI arrests an alleged middleman named Santosh Shankar Jagtap in connection with its probe into the alleged bribery and corruption charges against former Maharashtra Home Minister Anil Deshmukh.

November 1: Deshmukh appears before the ED along with his lawyer.

November 2: ED arrests Deshmukh under the provisions of PMLA.