Supreme Court Issues Notice On Bail Plea Of Man Accused Of Aiding Dawood Ibrahim Gang In Extortion, Hawala Case

The Bench comprising Justices Vikram Nath and Sandeep Mehta sought the NIA’s response to Shaikh’s challenge to the Bombay High Court judgment dated April 15, 2026, which had upheld the rejection of his bail plea by the Special NIA Court.

The NIA has also alleged that in April 2022, Shaikh received ₹25 lakh through a hawala transaction for alleged terrorist and criminal activities. According to the prosecution, he allegedly retained ₹5 lakh and handed over the remaining ₹20 lakh to another accused.

The allegations are disputed by Shaikh.

As per the plea before the Supreme Court, Shaikh has been in custody since May 12, 2022, after being arrested by the NIA in a case registered under provisions of the Unlawful Activities (Prevention) Act, 1967 (UAPA), the Maharashtra Control of Organised Crime Act, 1999 (MCOCA) and the IPC.

The NIA filed its chargesheet in November 2022 against five accused, including Shaikh, and cited 137 prosecution witnesses.

During Friday’s hearing, Advocate Mehmood Pracha, appearing for Shaikh, stressed the length of his custody and the size of the prosecution case.

“My Lords, four years have elapsed; an 8,000-page chargesheet. Charges have not been framed,” Pracha submitted.

Justice Vikram Nath asked when Shaikh had been taken into custody.

“May of 2022. Four years, four months. 137 witnesses, 8,000 pages of chargesheet,” Pracha replied.

Additional Solicitor General S.V. Raju, appearing for the NIA, said the agency would file a detailed response. “But he’s a member of the Dawood gang,” Raju submitted.

Pracha disputed the allegation and said the applicability of the UAPA would be addressed when the matter is heard further.

During the hearing, Advocates RHA Sikander, Jatin Bhatt, Sanawar, Vipin Kumar, Nikhil Guliani, Nujhat Naseem, Kumail Abbas, and Adeel Hassan also represented Shaikh.

The NIA’s case includes allegations that Shaikh maintained communication with Chhota Shakeel and transmitted messages on his instructions. The prosecution also relies on forensic material and alleged communications recovered from Shaikh’s phone.

In relation to the alleged ₹25 lakh hawala transaction, the prosecution claims that Shaikh received the money on April 29, 2022, using an alleged code word and token, and subsequently retained ₹5 lakh while handing over ₹20 lakh to another accused.

The plea also states that the prosecution relies on a test identification parade, forensic evidence concerning a receipt, alleged recovery of ₹5 lakh and other witness material in support of its case.

Shaikh has challenged the applicability of the UAPA and MCOCA provisions. His plea contends, among other things, that the alleged extortion and links with Chhota Shakeel largely relate to the period before 2019, while the alleged hawala transaction in 2022 is disputed as being connected with terror funding. He also disputes the prosecution’s reliance on two earlier criminal cases for invoking MCOCA.

The Supreme Court, after hearing the preliminary submissions, issued notice to the NIA and granted the agency four weeks to file its response.

Shaikh’s plea seeks regular bail after the Special NIA Court rejected his application on December 5, 2024. The Bombay High Court subsequently dismissed his challenge to that order on April 15, 2026.