Cox & Kings case: PMLA court grants bail to Hiren Bhagat
A special PMLA court granted bail to Hiren Ramesh Bhagat, a suspected liaison agent arrested by the Enforcement Directorate (ED) in a money laundering case involving Cox and Kings on Monday. The court observed that the money involved in the case cannot be called proceeds of crime
Mumbai: A special PMLA court granted bail to Hiren Ramesh Bhagat, a suspected liaison agent arrested by the Enforcement Directorate (ED) in a money laundering case involving Cox and Kings on Monday. The court observed that the money involved in the case cannot be called proceeds of crime.
The ED arrested Bhagat based on a complaint filed by the father of Peter Kerkar, the chief executive officer of Cox and Kings. The travel agency is under the ED’s scanner for allegedly acquiring loans fraudulently from Yes Bank and siphoning off ₹1,645 crore to overseas entities.
According to the prosecution, Bhagat allegedly contacted Peter Kerkar, promising to help him evade the ED’s investigation and assist in releasing the seized properties. Bhagat allegedly extorted ₹10 crore from the complainant.
The ED claims Bhagat helped Kerkar by lodging two FIRs with the Nagpada police based on false information. Additionally, Bhagat allegedly arranged a rental premise for Cox and Kings within the Nagpada police jurisdiction to manage the FIR jurisdiction. The ED’s probe revealed a quid pro quo arrangement, where Bhagat’s firm, Illuminati Services, received ₹75 lakh in October 2020 from a US-based entity controlled by Kerkar.
Cox and Kings came under ED scrutiny in the Yes Bank case, allegedly owing ₹3,642 crore to the private bank. Kerkar was arrested by the ED in November 2020 and has been in judicial custody for over three years.
The prosecution requested the court to reject Bhagat’s bail plea, stating he obstructed the recovery of proceeds of crime. However, the court noted Bhagat only received ₹75 lakh to help register an FIR and did not engage directly with the Kerkars. The court found no evidence that Bhagat was involved in money laundering or received proceeds of crime.
The court observed that Bhagat is not a hardened criminal and stated, “The applicant is nowhere involved in the present crime and there is not an iota of evidence against him.” The prosecution argued Bhagat was directly involved in the crime and knowingly received proceeds of crime.
Additional Sessions Judge AC Daga noted there was no evidence showing the FIR filed by Kerkar with Bhagat’s help delayed the original money laundering investigation. Bhagat’s advocate argued there was no proof Bhagat was involved in siphoning off funds, claiming his role was limited to providing legal opinion for which he received ₹71 lakh.
The court concluded that Bhagat allegedly posed as a liaison agent and the amount transferred to him was in lieu of Ajay Ajit Peter Kerkar’s salary, which cannot be called proceeds of crime.