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Synopsis

The Additional Solicitor General, Anil Singh, on Monday, representing the Enforcement Directorate opposed the bail plea of Shiv Sena MP Sanjay Raut. 

The Additional Solicitor General told the Special PMLA Court that,

"The investigation reveals that Sanjay Raut has received proceeds of crime"

He argued that there was a proposal that 672 tenants who were residing in the Patra Chawl would be rehabilitated and compensated. The Maharashtra Housing and Area Development Authority was also alloted some portion after the redevelopment. Loans were taken from financial institutions for redevelopment. Taking into consideration all the above parties he argued that it is not only tenants but MHADA and financial institutions are also affected due to the said crime committed by the applicant. 

He also argued that Section 3 of the PMLA Act is interpreted widely as decided by the Supreme Court and people even remotely connected with the crime can be prosecuted. The ASG cited a case and stated that:

"There was a case where an accused was beneficiary of Rs. 1 and even then his bail was rejected on the grounds that he was aware of the crime".

The ASG further argued that out of 3 cores 27 Lakhs, the applicant has tried to explain 1 crore 6 lakhs, but the applicant does not give any explanation for the 2 crores 20 lakh. 

The ASG submitted before the court that

"Out of the 1 crore 27 lakh the applicant has stated that he has taken a loan of 50 lakh from a friend in 2009-2010. The loan was repaid in December 2020 only after the wife of the applicant, Varsha Raut received the summons in the PMC Scam case."

Further, he also argued that

"With regard to the 37 lakh, the applicant states that he had invested 29 lakh in Prathamesh Company where 70% holding is of Pravin Raut and that within one month the return on investment is 37 lakh plus the original amount invested 29 lakh." 

The ASG stated that the Supreme Court in various judgments has stated that economic offenses are serious and that PMLA is a special statute not only for taking penal measures but also a preventive measure. Therefore, keeping in mind the twin condition under section 45 the bail should be decided. 

With respect to the applicants challenging the credibility of the statement of witnesses, the ASG submitted that the credibility of the witnesses cannot be questioned at the stage of bail application and the court cannot conduct a mini-trial.

Sanjay Raut was arrested by the ED late night on July 31, 2022, in a case pertaining to money laundering linked with the redevelopment of a chawl in Mumbai. Raut has also been charged with offences in relation to this transaction involving his wife and other associates.

The ED had produced Raut before the Prevention of Money Laundering Act (PMLA) Court Judge, M G Deshpande on August 1, 2022 and sought remand of eight days. Hiten Venegaonkar, Special Public Prosecutor for ED, had argued before the court that Raut and his family were direct beneficiaries of the proceeds of crime.

Case title: Sanjay Rajaram Raut vs Enforcement Directorate