Supreme Court upholds bail granted to Anil Deshmukh by Bombay High Court in ED case

The Supreme Court on Tuesday upheld the bail granted by the Bombay High Court to former Maharashtra Home Minister Anil Deshmukh in a money laundering case [ED vs Anil Deshmukh]..A Bench of Justices DY Chandrachud and Hima Kohli said that it will not interfere with the High Court order, thus refusing relief to the Enforcement Directorate (ED). The Court, however, it clarified that the since observations made by the Bombay High Court in its order were for deciding on whether Deshmukh was entitled to bail, the same will not affect the trial or any other proceedings."Since the observations in the impugned order of the High Court are confined to the question as to whether the respondent was entitled to the grant of bail, we clarify that these observations shall be construed only for that purpose. In other words, the observations shall not affect the merits of the trial or be pressed in any other collateral proceedings. The Special Leave Petition is accordingly dismissed" the Court ordered. .The Bombay High Court had, on October 4, granted bail to Deshmukh in the money laundering case being investigated by the ED..The Enforcement Directorate had moved the Supreme Court in appeal against the High Court order.During the hearing of the matter today, Solicitor General (SG) Tushar Mehta, appearing for the ED, submitted that the High Court drew incorrect conclusions regarding dismissed cop Sachin Waze, who was co-accused in the case before turning an approver. The High Court had held that Waze's statements that an amount of ₹1.71 crores was transferred during the months of February and March, 2021 allegedly extorted from the bars owners and handed over to Deshmukh's personal assistant, lacked certainty. "The way the confessional statement (by Waze) is treated by the High Court, we will never be able to ensure purity public life. The learner judge says that telephonically it was not heard that the amount was handed over. The money he received went to an organisation he heads, went through a series of shell companies and hawala operators. Jain brothers statements corroborates this," the SG submitted.The Court, however, said that it is only bail and not on the merits of the case and will interfere with the High Court order only if it is perverse."My attempt is to show the perversity which is writ large in the order. Learned (High Court) judge says statements were 'extracted'. No allegation of coercion was ever there on us," the SG said.The bench asked how long Deshmukh has been in custody."One year," said Senior Counsel Kapil Sibal appearing on behalf of Deshmukh. "But that is because, this offence is not any less serious than terrorism," said SG Mehta.Mehta said that the money collected from bar owners was for Deshmukh. "Throughout it said that no. 1 is Home Minister. How can it be said that there was no collection for him because of no phone calls? Several judgments about perverse findings," the SG maintained.If he has health problems he can be transferred (to a hospital), but that cannot be a ground to grant bail, it was contended."The diseases mentioned (for seeking bail) are lifestyle ones which can be managed in a hospital," Mehta further argued."See if say somebody who is 35, certain different standards will apply yes. But a lot of things have to be looked into. There can be age and occupational hazards," Justice Chandrachud responded..Sibal, on behalf of Deshmukh, submitted that the High Court order cannot be interfered with unless it is perverse. "Unless it is so perverse that ones conscience's is moved, High Court bail orders aren't interfered with," he said. On the merits, he argued that there is no evidence that money was laundered."Offence is not that he took 1.17 crore but transferred it. You have to show that the money was laundered, not through 161 statements. You vave to show that the dirty laundry was made white money. No evidence here of the money trail, no corroboration of statements," he contended..Deshmukh and his associates are being investigated for alleged corruption that took place between 2019 and 2021. Based on the findings of a preliminary investigation into a complaint by advocate Dr Jaishri Patil, the CBI booked Deshmukh and unknown others.The inquiry was launched after the Bombay High Court issued a direction to that effect on April 5, 2021, in response to a petition filed by Param Bir Singh, former Commissioner of Mumbai Police.Based on this FIR of CBI, the ED initiated a case of money laundering invoking offences under the Prevention of Money Laundering Act (PMLA) against Deshmukh and arrested him in November 2021..He was remanded to ED custody that was extended till November 15 by the High Court. Thereafter, he was remanded to judicial custody, where he remains till date.Deshmukh filed for regular bail before the High Court in March 2022 after a special PMLA Court rejected his bail plea.The bail plea was allowed by the Bombay High Court on October 4 leading to the present appeal before the top court.Deshmukh is still lodged in judicial custody in Arthur Road prison, since he is also being investigated by the Central Bureau of Investigation (CBI) in a corruption case..[Read order]