PMLA case: Builder Avinash Bhosale remanded in ED custody till July 5

A special PMLA court in Mumbai on Tuesday remanded ABIL group chairman Avinash Bhosale in the custody of the Enforcement Directorate (ED) till July 5 in a money laundering case.

He was earlier arrested by the Central Bureau of Investigation (CBI) in a corruption case involving Yes Bank founder Rana Kapoor and Kapil Wadhawan of the DHFL and was subsequently lodged at Mumbai's Arthur Road prison from where ED took his custody.

On Tuesday, the ED produced him before Special PMLA Judge MG Deshpande and sought his remand for further probe into the matter.

The ED, represented by special public prosecutor Hiten Venegaokar, told the court Yes Bank disbursed loan of Rs 3,983 crore to DHFL, which further disbursed Rs 2,317 crore to Radius Group of Sanjay Chhabria (a co-accused), which later transferred Rs 267 crore to Nibodh Realty, a firm owned by Avinash Bhosale.

Therefore, the probe agency told court it wanted custodial interrogation of the accused to ascertain further trail of money, including placement, layering and integration thereof. The ED told court they have abundant material to show money trail from Yes Bank to DHFL and further from DHFL to firms owned by Chhabria and Bhosale.

Advocates Vijay Agarwal and Rahul Vijay Aggarwal, appearing for Bhosale, opposed the ED's plea, saying there is nothing with the accused that has to be recovered from him through ED custody. Already everything is documented with the complaint, Vijay Agarwal said, adding that the investigation cannot be limitless as is being done in this case.

The court, after hearing both the submissions, said basically the aspect which ED always agitates as ''further investigation is going on'' and the legality thereof is subjudice before the Supreme Court. The only question before this court is to grant the probe agency's prayer for custody.

''I strongly feel these are the subsequent developments wherein the trail of Rs 267 crore was revealed by the investigation made with co-accused Sanjay Chhabria. It cannot be ignored that the total proceeds of crime involved in this offence is Rs 3983 crore. Sumptuous part thereof of Rs 267 crore had come to the present accused Bhosale from co-accused Chhabria,'' the court said.

The chain prima-facie indicates the material ingredients of offence under the Prevention of Money Laundering Act, where in the layering and integration of proceeds of crime is patent from the paper of investigation, the judge said.

Certainly further trail of these Rs.267 crore cannot be identified unless accused is remanded in ED custody, the court said, adding that the compass of investigation was very wide and whatever was allegedly laundered is ultimately public money and wealth of the nation.

''Therefore, sufficient opportunity has to be given to ED and the same cannot be rejected merely on the ground that nothing is to be recovered from the accused,'' the court added.

The court allowed Bhosale's plea seeking home cooked food and medicines prescribed by his doctor, and also permitted his lawyer to remain present at a visible but not audible distance from place of interrogation.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)