MUMBAI: A special Prevention of Money Laundering Act (PMLA) court has closed the Enforcement Directorate’s (ED) money-laundering case against Maharashtra minister Hasan Mushrif, his three sons and others linked to a Kolhapur sugar factory, after the Bombay high court quashed the proceedings in the underlying cases. Additional sessions Judge S V Sahare accepted the ED’s closure report, holding that the money-laundering offence could not survive after the predicate proceedings were quashed.
The case concerned alleged irregularities in the share capital of Sar Senapati Santaji Ghorpade Sugar Factory Ltd, in which Mushrif’s three sons are directors. The ED alleged that during 2013-14, the factory received crores of rupees from shell companies, besides discovering investments exceeding ₹11.35 crore in the factory’s financial statements without corresponding bank transactions. It also alleged that substantial funds were routed through layered and circular transactions involving the factory, associated limited liability partnerships and the accounts of its directors.
The ED registered its ECIR on April 4, 2022, following a complaint by the Registrar of Companies (RoC), Pune. A separate FIR was registered at Murgud police station in Kolhapur in February 2023, alleging fraudulent generation and manipulation of share capital raised from farmers.
In June 2025, the Bombay high court disposed of Mushrif’s petition challenging the Murgud FIR after the police informed it that a C-summary report had been filed in a Kagal court and accepted. In a separate order on November 6, 2025, the high court allowed two petitions challenging the RoC complaint and quashed the process issued by the Pune court.
{{/usCountry}}In June 2025, the Bombay high court disposed of Mushrif’s petition challenging the Murgud FIR after the police informed it that a C-summary report had been filed in a Kagal court and accepted. In a separate order on November 6, 2025, the high court allowed two petitions challenging the RoC complaint and quashed the process issued by the Pune court.
{{/usCountry}}The high court held that the allegations related to 2013-14, and the relevant amendment to the Companies Act, which came into effect in April 2021, could not be applied retrospectively.
Relying on the two developments, the ED approached the special court seeking closure of its investigation. Judge Sahare ordered the ECIR to be closed and the case papers to be returned to the ED.
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