Court accepts CBI’s closure report in case against Pushpak Bullions, UBI officers

Mumbai: A special court on Wednesday accepted the closure report filed by the Central Bureau of Investigation (CBI) in a case connected to Pushpak Bullions Pvt

Mumbai: A special court on Wednesday accepted the closure report filed by the Central Bureau of Investigation (CBI) in a case connected to Pushpak Bullions Pvt. Ltd. and bank officials of Union Bank of India for selling gold against purportedly tainted cash of ₹85 crore, in violation of RBI norms immediately after demonetisation in November 2016.

The ED alleged that the accused converted huge black money into white money during the demonetization period flouting norms

The CBI had registered the case based on a complaint lodged by the Enforcement Directorate (ED), claiming that during the demonetization huge cash amounting to the tune of ₹47.75 crore and ₹37.15 crore were deposited into the Current Account of M/s. Pihu Gold and M/s. Satnam Jewels, maintained with the Zaveri Bazar branch of the Union Bank of India.

The amount was further transferred into the NPA (Non-Performing Asset) account of M/s. Pushpak Bullions Pvt. Ltd. in the same branch. The transaction was allegedly carried out fraudulently and was on the written instruction issued by the then DGM, Regional Office of the public sector bank on November 11, 2016 – three days after the central government demonetised currency notes of ₹500 and ₹2,000 denominations.

It was alleged that the cash was directly deposited into the account of Pihu gold and Satnam Jewels in connivance with the accused and the DGM, Ashok Kumar Dhabhai, and K. Shiva Shankara Rao, AGM. Further, it was alleged that the amount in the demonetized currency of M/s. Pushpak Bullions Pvt. Ltd was not eligible for the purchase of gold under the outright purchase scheme, as the borrower was declared NPA by the bank.

The ED hence alleged that the accused converted huge black money into white money during the demonetization period flouting norms. It was in connection with this case only the Enforcement Directorate had provisionally attached immovable properties worth ₹6.45 crore of a company owned and controlled by Shridhar Madhav Patankar, the brother-in-law of former Maharashtra chief minister Uddhav Thackeray, claiming that Patankar’s construction firm Shree Saibaba Grihanirmiti Pvt. Ltd was used to park ₹30 crore.

CBI has, however, found no “substantive evidence” against the bank officers and the private individuals. The special court had earlier in October 2020, rejected the closure report filed by CBI on ED’s objection.

While rejecting the closure report in October 2022, the special court had directed CBI to carry out further investigation on several aspects.

The CBI claimed that even after further investigation they came to the same conclusion, hence submitted a closure report for the second time. ED, being the complainant opposed the report claiming, the investigation has not been properly carried out by CBI.

The court rejected ED’s contention and observed that “both the investigating agencies cannot insist each other to do investigation in any particular direction.” The special court noted that CBI investigated every aspect and also probed the questions raised by the special court as well.

“Twice, the CBI carried out investigation on each and every aspect, not only on the facts allegations but CBI appears to be carried out investigation on the pointers raised by this court while not accepting previous closure report,” reads the court order.