A special court in Mumbai dealing with cases under the Prevention of Money Laundering Act (PMLA) has directed the Enforcement Directorate (ED) to release properties it had attached, belonging to individuals who have been discharged in a money laundering case allegedly involving former state minister Chhagan Bhujbal.
Court Cites Constitutional Right to Property
The order was passed on Monday by the special PMLA court. The properties in question belonged to Krishna Chamankar, Prashant Chamankar, and their partnership firm, M/s KS Chamankar Enterprises. The court noted that all applicants have been discharged from both the predicate offence registered by the Anti-Corruption Bureau (ACB) and the subsequent PMLA case.
The judge emphasized the fundamental rights of citizens, stating that the right to enjoy property is a constitutional right. This right cannot be curtailed except for valid reasons and without following due process of law. The court found no valid reason to continue the attachment since the accused are no longer facing any charges.
ED's Request for Undertaking Rejected
The Enforcement Directorate had requested the court to seek an undertaking from the Chamankars. This undertaking would have required them to restore the properties if the discharge order was ever reversed in the future. However, the judge firmly rejected this request.
The court ruled that there is no legal basis for imposing such a condition. "The mere likelihood of challenge to the discharge order, or a possible reversal thereof, cannot be a ground to impose restraints on the enjoyment of property by the applicants," the judge observed. Demanding such an undertaking would amount to an impermissible restriction on citizens who are not facing any criminal charges.
Background of the Maharashtra Sadan Case
The case originates from the alleged irregularities in the construction of the new Maharashtra Sadan, a state guest house in Delhi. The Chamankars and their firm were appointed as developers for the project. The ACB had initially registered a case, which led to the ED filing a money laundering case.
In a significant development, the Bombay High Court in September quashed the proceedings against KS Chamankar Enterprises and its partners. The Chamankars had argued that a special trial court discharged them from the predicate ACB offence in July 2021. This discharge order attained finality as it was not challenged by any agency for over four years.
Following their discharge, the Chamankars filed an application seeking the release of their properties, which were provisionally attached by the ED. The properties were primarily in the name of their firm.
The special PMLA judge, in the final reasoning, stated that since all applicants have been discharged, there is no reason for the court to confiscate the properties and they must be released at the earliest. The judge also noted that despite the prosecution's claim that the discharge orders might be challenged, no such challenge or stay has been obtained from any competent forum till date.
