[Mahadev Betting App Case] “Without Saying Anything on Merits”: SC Gives Bail To Chhattisgarh Businessman

The Supreme Court Today (Oct 3) gave bail to Chhattisgarh-based businessman Sunil Dammani, arrested by the ED in August last year in a money laundering case linked to the Mahadev illegal gambling app, and said it was doing so without getting into the merit of the allegations. A bench comprising Justices J B Pardiwala and Manoj Misra noted that Dammani has been in custody since August 23, 2023 and set aside the Chhattisgarh High Court order denying him bail.

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NEW DELHI: The Supreme Court granted bail to Chhattisgarh-based businessman Sunil Dammani, who was arrested by the Enforcement Directorate (ED) in August 2023 in connection with a money laundering case related to the Mahadev illegal gambling app. The Court, while granting bail, clarified that the decision was made without addressing the merits of the allegations against Dammani.

A bench consisting of Justices J B Pardiwala and Manoj Misra observed that Dammani had been in custody since August 23, 2023, and overturned a previous Chhattisgarh High Court order that denied him bail.

“Without saying anything on merits, we are of the view that the appellant may be released on bail subject to bail conditions,”

-the bench stated.

It further ruled,

“Appellant is ordered to be released on bail if not required in any other investigation, subject to the condition that he shall mark his presence every 15 days at the ED office in the concerned district. The appellant shall not leave the country without prior permission of the trial court.”

During the hearing, Dammani’s counsel, senior advocate Vikas Pahwa, argued that the businessman had been in jail for over 14 months and highlighted that the main accused in the case had yet to cooperate with the investigation, and the trial had not commenced.

On behalf of the ED, advocate Zoheb Hossain opposed the bail plea, stating that there are 45 accused individuals in the case, and Dammani is alleged to be a hawala operator involved in illegally transferring over Rs 5,000 crore in crime proceeds abroad. The ED further emphasized that the key conspirators remain absconding, with red corner notices issued against them.

Despite these arguments, the Supreme Court acknowledged that Dammani had been in jail for a significant period since August last year and granted him bail without delving into the substantive allegations. The Court also noted that the ED had already filed the charge sheet (complaint) in the case, reinforcing its decision to release him on bail.

The case stems from a 2022 state police FIR against the Mahadev illegal gambling app, filed at the Mohan Nagar police station in Durg district. Along with Sunil Dammani, his brother Anil Dammani, Chhattisgarh Police assistant sub-inspector (ASI) Chandra Bhushan Verma, and another individual, Satish Chandrakar, were arrested in connection with the case.

The ED has accused the Dammani brothers of owning a jewelry shop and a petrol pump, and being involved in hawala transactions. Meanwhile, ASI Verma allegedly accepted bribes from the other accused to protect them from police action and is suspected of distributing money to other police officials as well.

The Supreme Court’s ruling came in response to an appeal filed by Dammani, challenging a July 26 order from the Chhattisgarh High Court, which had previously denied his bail request.

PREVIOUSY IN APEX COURT

The Supreme Court on Oct 1 agreed to hear today the bail plea of Sunil Dammani, a businessman from Chhattisgarh, who was arrested by the Enforcement Directorate (ED) in August last year in connection with a money laundering case linked to the illegal gambling platform, the Mahadev app.

A bench comprising Chief Justice of India (CJI) D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, was requested by Dammani’s counsel to urgently consider the bail plea, given that the businessman has been in jail for over 13 months.

Acknowledging the urgency of the matter, the CJI responded-

“We usually do not skip the board (cases listed for hearing on a given day), but this is a bail plea… We will hear it on Thursday.”

Dammani was arrested on August 23 last year, along with three others, for their alleged involvement in the Mahadev app-related money laundering case. The ED has been probing the case after a state police FIR was registered in 2022 at the Mohan Nagar police station in Durg district, Chhattisgarh, concerning the illegal gambling activities conducted via the Mahadev app.

The ED also conducted raids at various locations, including properties associated with 10 individuals, one of whom was Vinod Verma, a political advisor to former Chhattisgarh chief minister Bhupesh Baghel. Apart from Sunil Dammani, other individuals arrested in the case include his brother Anil Dammani, Chhattisgarh Police assistant sub-inspector Chandra Bhushan Verma, and Satish Chandrakar, all of whom are residents of Raipur.

According to the ED’s investigation, the Dammani brothers, who own a jewellery shop and a petrol pump, are alleged to have facilitated hawala transactions related to the case. The central probe agency suspects that ASI Verma accepted bribes from the accused to shield them from police action, and it is believed that he may have passed money to other police officials as well.

The upcoming Supreme Court hearing will be a critical development for Dammani, who has been behind bars for more than a year. The Mahadev app case has drawn significant attention due to its wide-reaching implications involving illegal gambling and money laundering.

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