IRS officer Sachin Sawant granted bail in money laundering case

The Bombay High Court granted bail to former IRS officer Sachin Sawant in a money laundering case, citing merit and prolonged incarceration.

MUMBAI: The Bombay high court on Wednesday granted bail to Sachin Sawant, a former Indian Revenue Service (IRS) officer, arrested in a money laundering case, stating that Sawant made a prima facie case on merit and was justified bail, particularly given the duration of his incarceration and the unlikely prospect of a swift trial.

IRS officer Sachin Sawant granted bail in money laundering case

The former Joint Commissioner of Customs, Sawant, 43, was accused of amassing assets disproportionate to his known sources of income. He was arrested on June 27, 2023, following a tip-off received by the Central Bureau of Investigation (CBI) and on this basis, the Anti-Corruption Bureau (ACB), Mumbai registered an FIR against him under section 13(2) (prohibition on money laundering activities) with sections 13(1)(b) (prohibits obtaining property through corruption) and 13(1)(e) (prohibits disproportionate assets acquisition) of the Prevention of Corruption Act, 1988.

The allegations against him stem from the period between January 12, 2011, and August 31, 2020, during which he purportedly accumulated assets totalling ₹ 2,45,78,579 that significantly exceeded his legal income.

The investigation revealed that a flat was purchased in the name of M/s Seven Hills Constrowel (India) Pvt. Ltd., with Balasaheb D. Sawant (Sachin’s father) serving as its director. It was discovered that a substantial portion of the funds for this purchase was routed through various loans, as well as personal and current accounts belonging to his family members, including his parents and brother.

Further analysis of numerous bank accounts revealed nearly all loan repayments were made by depositing cash into these accounts, which was then transferred to the respective loan accounts. The FIR asserted that the source of this cash was proceeds derived from criminal activities linked to Sawant’s unexplained sources of income.

The findings indicated that, during his tenure at various departments including the Central Excise, Nhava Sheva (Exports), Customs, and the Directorate of Enforcement, Sawant allegedly received substantial sums in cash from these unexplained sources, which were subsequently deposited into the bank accounts of both companies and family members.

Advocate Ashok Mundargi, advocate Niranjan Mundargi, and advocate Mithilesh Mishra, representing Sawant revealed that the FIR related to the predicate offence in the case against Sawant is unsigned, with his signature missing and the relevant column left blank, rendering the FIR invalid. The counsel further contended that the arrest order was flawed, citing that the remand application lacked sufficient material to justify the reasons for the applicant’s arrest. Notably, they said, all statements recorded under Section 50 of the Prevention of Money Laundering Act (PMLA) occurred after the arrest, suggesting a preconceived notion of guilt by the authorities.

Advocate Shreeram Shirsat, representing the ED, argued that the elements of money laundering were clearly established, noting that Sawant had allegedly channelled ill-gotten funds through family members to purchase assets, thus indicating a strong prima facie case against him. The investigation revealed substantial cash amounts linked to these transactions.

The court presided over by Justice Manish Pitale granted bail to Sawant, concluding that Sawant had met the stringent “twin test” under Section 45 of the Prevention of Money Laundering Act (PMLA). This test requires the accused to demonstrate a reasonable possibility of innocence and to assess the seriousness of the offence, ensuring no risk to the investigation or potential evidence tampering.