Top court dismisses ED's plea against release of IAS officer in money laundering case

The Supreme Court refused to hear the Enforcement Directorate's plea seeking pause on the release order of Anilkumar Pawar, former commissioner of the Vasai Virar City Municipal Corporation (VVMC) in a money laundering case. During the hearing, the court pointed out that there was nothing wrong with the Bombay High Court order and dismissed the Special Leave Petition submitted by the probe agency.

"We have read the order. In fact, no evidence at all. No tangible incriminating evidence against the respondent," Justice Vikram Nath said. The bench also comprised Justice Sandeep Mehta.

"When did you register the ECIR? After 5 years. 2019 was the first FIR. 2022 was the last FIR," Justice Mehta said before dismissing the petition.

The ED approached the top court, contesting the Bombay High Court's recent order that directed the release of Pawar, who had been under arrest for his alleged involvement in a money laundering case concerning the illegal construction of 41 buildings on government land in Vasai. The High Court issued a release order for him, terming his arrest as unlawful.

Citing its grounds of arrest, the ED had said that when their officials conducted a search on Pawar's residence, he didn't open the door despite being inside, and even after repeated knocks for two hours. They alleged that Pawar was destroying evidence from his phone such as messages.

In a setback for the ED, the Bombay High Court led by Chief Justice Shree Chandrashekhar and comprising Justice Gautam A Ankhad observed that the ED failed to present "sufficient tangible material" to justify Pawar's arrest on August 13, declaring his custody and subsequent judicial remand "unlawful".

The bench said, "the petition succeeds," and cancelled the special court's orders. The court required Pawar's legal team to provide undertakings that he would not tamper with evidence or influence witnesses before his release.

During the Wednesday hearing, Additional Solicitor General Anil Singh, representing the ED, highlighted WhatsApp chats between Pawar and YS Reddy, a co-accused and deputy director of town planning of the Vasai-Virar City Municipal Corporation, as evidence, along with statements from architects and builders.

Singh asserted these pointed to a "clear conspiracy". He further said, "After the raid on Reddy's residence, material was found, and witness statements were recorded. There is a clear case. What else does one need?"

However, Chief Justice Chandrashekhar responded, "You cannot pose that question to the court," and added, "So what you are relying on is statements under section 50 of the PMLA and WhatsApp chats. No incriminating material was found when you raided the petitioner."

Singh explained the absence of physical evidence, saying, "No one will keep it at home".

Later, the probe agency submitted a note defending Pawar's arrest, claiming there were "no illegalities" and that investigators had "abundant material", including information on money transfers from Reddy to Pawar's wife. However, the High Court ruled that the evidence did not meet the threshold for depriving someone of liberty, and held the arrest "unjustified."

The ongoing case involves alleged "proceeds of crime" amounting to Rs 300.92 crore, with approximately Rs 169 crore reportedly linked to Pawar, according to the agency. The ED has already filed a chargesheet against Pawar and several others in connection with the case.