Sadanand Kadam was arrested on March 10, 2023, by the Enforcement Directorate, which marked a pivotal moment in the investigation of financial irregularities under the stringent Prevention of Money-laundering Act, 2002 (PMLA)
On February 12, the Supreme Court of India extended its judicial discretion to grant bail to Sadanand Kadam, a prominent figure closely associated with Shiv Sena (UBT) MLC Anil Parab. Kadam found himself embroiled in a money laundering controversy tied to the construction of the contentious ‘Sai Resort’ in Dapoli, located in the scenic Ratnagiri district of Maharashtra. This case has attracted significant attention due to its implications on political figures and their associates, highlighting the intricate relationship between politics, business, and legal scrutiny in India.
Sadanand Kadam’s arrest on March 10, 2023, by the Enforcement Directorate marked a pivotal moment in the investigation of financial irregularities under the stringent Prevention of Money-laundering Act, 2002 (PMLA). The allegations against Kadam were severe, accusing him of being directly or indirectly involved in acquiring property through criminal activities related to a scheduled offence. The case against him suggested a deliberate attempt to launder money by projecting illegally obtained assets as legitimate.
The judicial journey for Kadam saw a significant setback when his bail plea was rejected by the Special PMLA Court in October, following a detailed examination of the allegations. The High Court, in its observation, stated,
“A reading of the PMLA complaint would clearly go to show the allegations are that the subject property is derived or obtained, directly or indirectly, by the applicant as a result of criminal activity relating to a scheduled offence. Further, in my opinion, prima facie, the applicant can be said to have directly or indirectly attempted to indulge or knowingly assisted or is knowingly a party or actually involved in process or activity connected with proceeds of crime and projected it as untainted property.”
Undeterred by the High Court’s refusal to grant bail, Kadam escalated his plea to the Supreme Court, seeking relief and a chance to defend himself outside the confines of custody. The Supreme Court’s bench, led by Justices Abhay S. Oka and Ujjal Bhuyan, deliberated on the complexities of the case and the arguments presented by both sides.
In a decisive move, the Supreme Court ruled in favor of granting bail to Sadanand Kadam, recognizing his entitlement to bail under Section 45(1)(ii) which says (where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail) of the PMLA, subject to specific terms and conditions pending the trial’s conclusion. The court’s decision was influenced by the fair stance taken by the learned ASG, leading to a resolution not to record detailed reasons for the bail grant. The directive was clear:
“…we find that the appellant is entitled to be enlarged on bail in accordance with Section 45(1)(ii) of the PMLA on appropriate terms and conditions, till the disposal of the complaint case filed by the first respondent/Directorate of Enforcement under the PMLA. In view of the fair stand taken by the learned ASG, we are not recording detailed reasons.”
Furthermore, the Supreme Court ordered the Enforcement Directorate (ED) to ensure Kadam’s appearance before the Special Court within a week. The Special Court is then to formally grant him bail, setting the stage for the trial to proceed with Kadam not behind bars.
“For that purpose, we direct that the appellant shall be produced before the Special Court within a period of one week from today. The Special Court shall enlarge the appellant on bail on appropriate terms and conditions, till the trial of the complaint case concludes.”
This case, officially recorded as SADANAND GANGARAM KADAM VERSUS DIRECTORATE OF ENFORCEMENT & ANR., CRIMINAL APPEAL NO(S).815 OF 2024, represents a significant moment in India’s legal landscape, particularly in how money laundering cases involving political figures and their associates are handled. It underscores the judiciary’s role in balancing the scales of justice, ensuring that individuals are given a fair chance to defend themselves while also upholding the integrity of the legal process against financial crimes.
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