Mumbai: HC refuses bail to realtor Sanjay Chhabriaa in Yes Bank money laundering case

The Bombay High Court has refused to grant default bail to realtor Sanjay Chhabriaa in the Yes Bank money laundering case PTI reported on Thursday The court observed that money laundering involves intricate processes to make illegallyobtained money appear legitimate and hence require indepth investigationA single bench of Justice M S Karnik on October 9 dismissed Chhabriaas petition seeking default bail on the ground that though the Enforcement Directorate ED submitted its prosecution complaint against him within the mandatory 60day period it had also sought permission from the special court to carry on further probe in the caseThe high court in its order agreed with the agency and said the offence of money laundering involves multiple interconnected transactions and the same demands cumbersome investigation and that the Enforcement Directorate in the present case was investigating an economic offence which demands indepth and detailed investigation the PTI report saidThe accused undoubtedly has the right to a fair trial which is a dimension of the right to life and personal liberty under Article 21 of the Constitution of India Likewise it is also the duty of the respondent ED to conduct a comprehensive and complete investigation as regards the offence the order saidMoney laundering refers to the process of making illegallyobtained money appear legitimate or clear in order to disguise its illicit origins The ultimate goal of money laundering is to integrate illicit funds into the lawful financial system making it challenging for authorities to trace and seize the proceeds the court saidMoney laundering involves intricate processes designed to obfuscate the origin of illegallyobtained funds Justice Karnik said adding the complexity of a money laundering case is determined by the intricacy and sophistication of the methods used to disguise the illicit fundsAlso read Sadanand Kadam acted as frontman sought to legalise illicit work says courtComplex money laundering cases such as the one at hand encompass multiple levels of transactions These cases typically involve intricate schemes and techniques aimed at creating numerous layers of obfuscation making it challenging for investigators to unravel the true nature of the illicit funds the HC said in its orderThe EDs case is that Chhabriaa had played a crucial role in diverting funds procured illegally by Yes Banks founder Rana Kapoor and Dewan Housing Finance Limited DHFL promoter Kapil WadhwanJustice Karnik said further investigation was on with regard to the larger offence of money laundering in the caseThere is no embargo for conducting any further investigation in the case by the respondent to bring any further evidence oral or documentary against any accused person involved in the offence against which the complaint has been filed the HC saidChhabriaas lawyer Vibhav Krishna said since the investigation in the case was incomplete even after 60 days since Chhabrias arrest in the case the accused stands to get relief of default bailChhabriaa was arrested by the ED on June 7 2022 in connection with the Yes BankDHFL money laundering case On August 4 2022 the ED submitted its prosecution complaint chargesheetKrishna argued that the complaint was filed by the ED without completing its investigation only to scuttle the indefeasible right accrued in favour of the accused to claim default bailHe submitted to the court that Chhabriaa was granted default bail in the CBIs corruption case related to the same offence by the Supreme Court in April this yearChhabriaa moved the HC seeking bail in the EDs case after a special court rejected his plea in August last yearAdditional Solicitor General Devang Vyas opposed the plea and argued that the investigation with respect to Chhabriaa is complete but the probe in the whole case is still on With inputs from PTI