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On Monday, the Maharashtra Minister and NCP leader Nawab Malik was sent to 14 days judicial custody by a Special PMLA court in Mumbai.

Malik was arrested by ED on February 23, in connection with the Dawood Ibrahim money laundering case. Earlier in the day, he was produced before the Special PMLA (Prevention of Money Laundering Act) Court by the Enforcement Directorate (ED) after his extended custody with the central agency ended.

During the court hearing, the ED demanded that the Maharashtra Minister be sent to judicial custody.

A Special Judge (PMLA) on March 3 had extended Mohammed Nawab Mohammed Islam Malik @ Nawab Malik's remand to the Enforcement Directorate (ED) till March 07, 2022.

Special Judge RN Rokade had extended the remand period considering that Malik was in the hospital during the initial remand period and the agency couldn't record his statements. 

It was alleged that Malik in connivance with D-­gang members i.e. Haseena Parker, Salim Patel and Sardar Khan hatched a criminal conspiracy for usurping a prime property in Mumbai, lawfully belonging to one Munira Plumber and her mother having market value of around Rs. 300 crores which has been held by the Special Court to be proceeds of crime as defined under Section 2(1)(u) of PMLA.

Earlier, on February 26, 2022 Malik was remanded in the custody of the Enforcement Directorate till March 3, 2022.

“Prima facie, there are reasonable grounds to believe that the accusations are well-founded under PMLA. The investigation is at the nascent stage. Having regard to the serious allegations and statements in support of it, I am of the considered view that custodial interrogation of the accused is necessary to unearth all the ramifications involved in the crime….”, the Special Judge had observed.

Relying on Section 3 of the Prevention of Money Laundering Act, 2002 (PMLA) Judge Rokade had previously stated that, the offence of money laundering is continuing in nature and it continues till such time that a person enjoys the proceeds of crime by its concealment or possession or acquisition or use of untainted property or use or projecting the same as untainted property.

“The proceeds of crime have traversed since last 20 years and more. Therefore, sufficient time is required to be granted for the investigation of the offence…”, the Court had held while passing the remand order.

Further, rejecting submissions advanced on behalf of Malik that he was illegally arrested, the Court had noted that Malik had not co-operated with the investigation on crucial aspects, grounds of arrest were communicated to Malik, and there was substantial compliance under Section 19 of the PMLA.

Malik was arrested on February 23, 2022, under section 19 of the Prevention of Money Laundering Act, 2002 (PMLA).

Cause Title: The Directorate of Enforcement vs Mohammed Nawab Mohammed Islam Malik @ Nawab Malik