PMLA court refuses to discharge red sanders smuggler Ajit Satam

The Directorate of Revenue Intelligence (DRI) had seized red sanders consignments weighing 839.4 metric tonnes from locations, including Nhava Sheva, ICD Dighi, and Talegaon. Satam contended in his plea that the seizure was illegal and beyond the jurisdiction of the customs commissioner

MUMBAI: A special court under the Prevention of Money Laundering Act (PMLA) has rejected the discharge application of alleged red sanders smuggler Ajit Satam, who is facing charges of laundering proceeds from the smuggling of 839 metric tonnes of the endangered wood between 2010 and 2011.

PMLA court refuses to discharge red sanders smuggler Ajit Satam

Red sanders or red sandalwood is an endangered species found only in south India, especially in Andhra Pradesh.

In an order passed on May 15, special judge A C Daga ruled that there was prima facie evidence indicating Satam’s involvement in smuggling activities and in laundering the profits generated. The court observed that Satam had “himself admitted to the generation of proceeds of crime, their layering, and projection as untainted,” in his statement recorded under Section 50 of the PMLA.

According to the Enforcement Directorate (ED), Satam allegedly earned ₹40 crore in cash from the illegal trade and later laundered the amount through various financial transactions. He is accused of converting the cash into cheques and RTGS transfers, and depositing the funds into bank accounts to give them the appearance of legitimate income. The ED said he used these laundered funds to acquire luxury vehicles and real estate.

The Directorate of Revenue Intelligence (DRI) had seized red sanders consignments weighing 839.4 metric tonnes from locations, including Nhava Sheva, ICD Dighi, and Talegaon. Satam contended in his plea that the seizure was illegal and beyond the jurisdiction of the customs commissioner. His lawyer argued that there was no evidence linking him to the sale proceeds or smuggling operations.

However, the ED maintained that there was substantial evidence of his involvement, including his own statements. The court noted that Satam had disclosed exporting approximately 40 containers of red sanders to Dubai and admitted to the use of multiple bank accounts to layer the proceeds of the crime.

Rejecting the discharge plea, the court concluded that there was sufficient material to proceed with framing charges and ruled that no case had been made for granting bail.