Realtor Sanjay Chhabriaa’s plea for default bail in the Yes Bank money laundering case was dismissed by a single bench of the Bombay High Court. Justice M S Karnik delivered the verdict on October 9, citing the intricate nature of money laundering cases that necessitate thorough investigation. The Enforcement Directorate (ED) had filed its prosecution complaint within the mandated 60-day period but had also requested the special court’s permission to continue the probe in the case, arguing that it was still ongoing. The high court concurred with the ED, highlighting that money laundering involves multiple interconnected transactions and intricate processes.
The court noted that the offence of money laundering is complex and encompasses various levels of transactions, often involving sophisticated methods to obscure the origin of illicit funds. Money laundering seeks to legitimize unlawfully acquired money, making it difficult for authorities to trace and seize the proceeds. The court emphasized the need for comprehensive and detailed investigations in such cases.
Chhabriaa, accused of playing a key role in diverting funds procured illegally by Yes Bank’s founder Rana Kapoor and Dewan Housing Finance Limited (DHFL) promoter Kapil Wadhwan, is still under investigation for the larger money laundering offence. The court stated that there was no restriction on conducting further investigations to bring additional evidence against any accused involved in the offence. Chhabriaa’s lawyer argued that, since the investigation remained incomplete after 60 days from Chhabria’s arrest, he was entitled to default bail
Sanjay Chhabriaa was arrested by the ED on June 7, 2022, in connection with the Yes Bank-DHFL money laundering case.