Maharashtra Sadan scam: HC quashes money laundering case against firm, its 2 directors

Mumbai, Sep 16 (PTI) The Bombay High Court on Tuesday quashed the money laundering case and the chargesheet filed by the Enforcement Directorate (ED) against a city-based firm and two of its directors in connection with the alleged Maharashtra Sadan scam.

A bench of Justices A S Gadkari and Rajesh Patil noted that the firm and its directors have been discharged in July 2021 by a special court from the predicate offence lodged by the state Anti-Corruption Bureau (ACB) and hence the scheduled offence under provisions of the Prevention of Money Laundering Act (PMLA) cannot stand.

"Therefore, the complaint and the chargesheet registered by the ED qua the petitioners (firm and its directors) deserve to be quashed and set aside," the HC said.

The court allowed the petition filed by Chamankar Enterprises and its two directors - Krishna Shantaram Chamankar and Prasanna Shantaram Chamankar.

The firm and its directors were booked for irregularities in the contract for construction of Maharashtra Sadan in New Delhi. It was alleged that in lieu of the said contract, Chamankar had allegedly paid kickbacks to the family members of the then Maharashtra PWD minister Chhagan Bhujbal.

However, the special court had in 2021 discharged the firm and its partners from the case filed by the ACB observing that there were no irregularities in awarding the contract. PTI SP NP