Special PMLA court refuses bail to Mirchi’s aide Humayun Merchant
On careful examination of the Prosecution Complaint, it appears that ED has referred several instances to indicate how the applicant (A10 - Merchant) was a frontman of Iqbal Mirchi and an active participant knowing the process of generating, placing, layering, and integrating the proceeds of crime
MUMBAI: A special PMLA (Prevention of Money Laundering Act) court recently refused to grant bail to gangster Iqbal Mirchi’s close aide Humayun Merchant, observing that he was a frontman of Mirchi and had played a pivotal role in all the activities of the late gangster.
Merchant was arrested in 2019 by the Enforcement Directorate (ED) in a money-laundering case. The agency claimed that Merchant had helped Mirchi (who allegedly looked after the drugs trafficking business of the Dawood Ibrahim gang) acquire properties in Worli in 1986, using money earned through crimes like smuggling, drug trafficking, and extortion.
“On careful examination of the Prosecution Complaint, it appears that ED has referred several instances to indicate how the applicant (A10 - Merchant) was a frontman of Iqbal Mirchi and an active participant knowing the process of generating, placing, layering, and integrating the proceeds of crime,” the special judge MG Deshpande observed while rejecting Merchant’s bail plea.
The court further said, “Merchant arranged several meetings of co-accused persons with Iqbal Mirchi at various places like London, Dubai, and accompanied them for the same. Those meetings were for acquiring properties to project tainted monies as untainted. All this clearly indicates how the applicant had a prominent role in various illegal activities of Iqbal Mirchi and how he assisted and participated in the same.”
The defence contended that the trial against Merchant and other accused has been delayed as the prosecuting agency still does not have clarity on the predicate offences which were registered with the Mumbai police. The court, however, noted that “ED has already said that once they get all information of cases relating to the scheduled offence, they would submit the same and also take the step.”
As per the chargesheet filed by ED, Merchant ‘planted’ tenants to purportedly usurp three immovable properties — Sea View, Marium Lodge, and Rabia Mansion in Worli — which were brought by Mirchi in 1986 from Mohammad Yusuf Trust.
The ED also alleged that Merchant then facilitated the deal to develop these buildings located at a prime location in Worli. The agency stated in its remand report that Merchant initially approached a developer, Joy Home Creation Pvt Ltd, and assured him that the properties are free from attachment by the government. Later, he arranged a meeting between Joy Home Creation’s director Jayesh Soni and Mirchi in London.
“During the said meeting, various modalities about the project were discussed. After the approval of Mirchi, an agreement was established between Trust and Joy Home. Initially, five tenants were transferred,” the report stated.
Mirchi, however, threatened Soni to exit the said property after he failed to pay ₹11 crore as promised.
Later in 2010, Sunblink Real Estate Pvt Ltd entered the project, and a deal was struck for the surrender of tenancy rights in favour of Sunblink for ₹225 crore.