Mirchi money laundering case: DHFL promoter granted bail

The special Prevention of Money Laundering Act (PMLA) court on Friday granted bail to Dewan Housing Finance Corporation (DHFL) promoter Kapil Wadhawan, 46. He was

The special Prevention of Money Laundering Act (PMLA) court on Friday granted bail to Dewan Housing Finance Corporation (DHFL) promoter Kapil Wadhawan, 46. He was arrested on January 27 in connection with the money-laundering probe against late gangster Iqbal Mirchi.

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After the PMLA court granted Wadhawan bail, ED moved the Bombay high court (HC) to stay his release. But the court dismissed ED’s application. Wadhawan had moved a bail application earlier this month on the ground that he had no connection with the transaction of Mirchi’s properties.

Defence lawyer Amit Desai had questioned Wadhawan’s arrest on the ground that the DHFL’s transaction, which the Enforcement Directorate has cited for his arrest, has nothing to do with the alleged money laundering by Mirchi and contended that it could be a different case.

The defence also pleaded that Wadhawan’s brother Dheeraj (also a promoter of DHFL) as well as Sunny Bhatija, the director of Sunblink Real Estate Pvt Ltd, who are the key accused in the case, have also been granted bail. Dheeraj and Bhatija were allegedly directly involved in buying the Mirchi’s properties.

DHFL allegedly extended loans to Sunblink, which purportedly routed money to Mirchi. Wadhawan also allegedly purchased one of the properties from the late gangster. The agency accused Wadhawan of playing a “very crucial role” in the “nefarious transactions by way of money laundering”.

ED claimed that DHFL created five shell companies, which eventually got amalgamated with Sunblink. According to ED, “the conduit of Sunblink was purposefully created by Wadhawan as DHFL’s chairman-managing director, and others to obfuscate the trial of monies for purchase of properties from the Mirchis. Sunblink is controlled by the Wadhawans.”

ED opposed Wadhawan’s bail on the grounds that he could influence the probe and on other grounds. However, after considering all the aspects of the case, the court granted bail to Wadhawan. While granting him bail, the special PMLA court imposed several conditions on Wadhawan. The court said he would have to surrender his passport and cannot leave the country. The court has also asked Wadhawan to not tamper with the prosecution evidence and also to not “directly or indirectly make any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing facts to the court or investigating officer.”

Wadhawan, 46, was asked to furnish a cash bond of ₹5 lakh.

ED then moved HC, challenging Wadhawan’s bail. ED first filed its application before the bench of justice SK Shinde who recused himself from the hearing. The agency then approached justice PD Naik, but he too recused himself. The bench of justice PK Chavan then took up the matter, during which ED sought a stay on Wadhawan’s bail on the grounds that the offence was serious. The agency also said that the PMLA court’s bail order was not available and thus it was unaware of the grounds on Wadhawan’s bail was approved. ED said once the order was available to the officers, Wadhawan could be released if there was nothing adverse in it. Additional solicitor general Anil Singh, along with special counsel Hiten Venegaonkar appeared for ED, and stated that as the investigations in the case were ongoing, Wadhawan’s bail would impact the probe.

However, Desai opposed ED’s application, stating that the agency could not put the liberty of his client on hold as he had a right to be free. Desai further submitted that even in serious offences, the SC had held that liberty of a person was his right. After both sides concluded their arguments, around 6.45 pm, as the bench was about to start dictating the order, Desai informed the court that Wadhawan had left the Arthur Road prison and ED’s application had become infructuous. After ED confirmed it, the HC dismissed the application and asked officers to file a fresh application