Gangster Iqbal Mirchi case: Court rejects broker’s discharge plea, says he received brokerage for his involvement

The advocate representing Bindra submitted that the applicant was merely a broker for the properties and was not involved in the offence of money laundering. Bindra further stated that he came into the picture when the sale of Worli properties was proposed and represented the buyer’s side and not that of the sellers

MUMBAI: A special court designated under the Prevention of Money Laundering Act (PMLA) on Thursday rejected the discharge application of Ranjeet Singh Bindra, an alleged middleman in a redevelopment deal of the late gangster Iqbal Mirchi’s properties. The court observed that Bindra cannot seek relief by claiming that he was merely a broker in properties linked to Mirchi.

IQBAL MIRCHI CRIMINAL

The Enforcement Directorate (ED) which arrested Ranjeet Bindra in October 2019 claimed that he had played a crucial role in the illegal dealing of properties of Mirchi in Mumbai. The properties were claimed to have been purchased through the proceeds of the crime of Iqbal Mohammed Memon, popularly known as Iqbal Mirchi, a close aide of gangster Dawood Ibrahim. Bindra approached the court recently claiming that he had only brokered the transaction from the buyer’s side.

A total of ten cases were registered against Mirchi, wherein he was allegedly involved in smuggling narcotics and operating an extortion racket. During the Prevention of Money-Laundering Act investigation, it was revealed that Mirchi had allegedly amassed substantial amounts through criminal activities related to drug and arms smuggling, extortion, and other illicit acts. Subsequently, the significant proceeds generated from these illegal activities were allegedly laundered, layered, and invested in numerous properties across Maharashtra, India, and even abroad, with efforts made to portray them as legitimate assets.

Mirchi owned assets both in his name and in the names of his relatives, as well as through companies controlled by him and his family members, making all these properties proceeds of crime (POC).

The PMLA investigation uncovered that Mirchi had allegedly purchased three properties, namely Sea View, Marium Lodge, and Rabia Mansion in Worli, belonging to Sir Mohd. Yusuf Trust in September 1986 through his firm M/s Rockside Enterprises, for a total amount of ₹6.5 lakh.

It was further revealed that an FIR was registered in Chennai for using fake KYC documents and receiving an amount of ₹6.60 crore, which was ultimately routed to Mirchi in Dubai and was received against the Worli properties. However, the properties, even after the payment, continued to remain with the Trust, making it a clear case of money laundering, according to the Enforcement Directorate (ED).

The advocate representing Bindra submitted that the applicant was merely a broker for the properties and was not involved in the offence of money laundering. Bindra further stated that he came into the picture when the sale of Worli properties was proposed and represented the buyer’s side and not that of the sellers (Mirchi).

Examining the contentions raised by the applicant, the court observed that the properties were acquired through illegal funds obtained through illicit means which were transferred using fake bank accounts opened based on falsified Know Your Customer information, pointing out that the crime was executed skilfully with the intention of concealing the ultimate beneficiary, Mirchi, of the proceeds of crime.

According to the prosecution complaint, the applicant had presented the properties to Dheeraj Wadhawan, the promoter-director of M/s. Dewan Housing Finance Ltd. (DHFL), who expressed interest in acquiring them. All the negotiation and mediation of the deal between Mirchi and Wadhawan was facilitated by Bindra.

Special public prosecutor contended that the prosecution complaint was supported by three huge volumes of exchange of all the emails, indicating that Bindra was aware as to who was Mirchi, what was his source of income and which money had been transacted for the sale of those three properties where he acted as a broker.

“In ordinary course a genuine broker knowing well such illegal activities on the part of Iqbal Mirchi would not have entered the transaction in question, even to facilitate the sale of the properties even from the buyer’s side,” the court observed.

After listening to arguments at length, special judge MG Deshpande noted that the applicant was aware of the situation.

“Even if the applicant wants to portray himself innocently as a broker, the truth and reality are different and clearly indicate that he actively and knowingly assisted in the concealment of the proceeds of crime and facilitated their use by Iqbal Mirchi and various other accused persons. Moreover, he (Bindra) received brokerage for his involvement, which also constitutes proceeds of crime,” the special judge said, adding even a child in Mumbai (and also in India) knew about Dawood Ibrahim and Iqbal Mirchi, and what their sources of income and properties were.