Mumbai: The Bombay High Court on Tuesday granted bail to Shiv Sena (UBT) functionary Suraj Chavan in a money laundering case linked to an alleged scam in the distribution of ‘khichdi’ packets to migrant workers in Mumbai during the COVID-19 pandemic.

Justice Milind Jadhav allowed Chavan’s bail application, emphasising that he had been in custody for over a year and the trial was unlikely to conclude “in the foreseeable future.” The court observed, "If applicant's detention is further continued, it would amount to the infringement of his fundamental rights under Article 21 of the Constitution of India of a speedy trial and guarantee of personal liberty.”

The Enforcement Directorate (ED) had arrested Chavan on January 17, 2024, based on a First Information Report (FIR) registered by the Mumbai police’s Economic Offences Wing (EOW). Chavan approached the HC after his bail plea was rejected by the special court under the Prevention of Money Laundering Act (PMLA) on September 9, 2024.

Chavan’s counsel, Ashok Mundargi, argued that neither the EOW FIR nor the ED’s Enforcement Case Information Report (ECIR) named Chavan as an accused. Chavan, he contended, was arrested solely based on statements of co-accused. Mundargi further argued that the prosecution had not established its primary allegation regarding the supply of underweight food packets.

The prosecution alleged that Chavan had influenced BMC officials to award the work order to M/s. Force One Multi Services. However, Mundargi countered this, stating that the necessary licenses were in place and that no incriminating material was found in official documents. He also argued that statements of co-accused were inadmissible under Section 25 of the Indian Evidence Act, 1872.

Opposing the bail, public prosecutor Hiten Venegaonkar submitted that Chavan had received Rs 1.35 crore from M/s. Force One Multi Services between June 2020 and December 2020, allegedly as a kickback. He claimed Chavan fabricated backdated appointment letters to justify the amount as salary and a personal loan.

The court, however, noted that Chavan had “deep roots in society” and posed no flight risk. “Since the case before me is restricted to grant of bail on account of long incarceration of the under-trial accused, I refrain from commenting on the merits of the matter,” Justice Jadhav said.

Justice Jadhav also noted that prosecution’s principal allegation that Chavan is an “influential position” in the State at the then time may have been related in the so-called alleged situation as put forth by the prosecution but the said situation no longer prevails in the current dispensation. “Therefore any apprehension of prosecution regarding tampering with the evidence can be redressed by imposing appropriate conditions,” the judge added.

The High Court granted bail on a personal bond of Rs 1 lakh with conditions: Chavan must report to the ED once a month, cooperate with the trial, attend court unless exempted, and seek permission before leaving Maharashtra. “Any infraction of these conditions shall entail the prosecution to seek cancellation of this order,” the court warned.

As per the ED, the Brihanmumbai Municipal Corporation (BMC) transferred Rs 8.64 crore into the bank account of Force One Multi Services to distribute khichdi packets to migrant workers who were stranded in the city during the lockdown on account of COVID-19.

There was a scam of Rs 3.64 crore, of which Rs 1.25 crore were diverted to Chavan's bank account and Rs 10 lakh to the account of his partnership firm Fire Fighters Enterprises, the ED claimed. Chavan, thus, acquired "proceeds of crime" of Rs 1.35 crore which he used to buy property and invest in dairy business, the central agency alleged.