Mumbai: Special PMLA Court Refuses To Discharge KS Chamankar Enterprises, Partners In Maharashtra Sadan Money Laundering Case

Mumbai: The special PMLA court has refused to discharge M/s KS Chamankar Enterprises and its three partners booked for money laundering based on their role in the connection with alleged irregularities in awarding contracts for Maharashtra Sadan, RTO building and SRA project.

The court said that there are enough evidence to proceed against them."Upon consideration of record of the case and the documents submitted therewith, it is apparent that there are sufficient grounds for proceedings against the applicants. Contentions put forth by the applicants to clarify the allegations would be the defence of applicants. That can be considered at the time of full-fledged trial and not at this stage," the special judge AU Kadam said while refusing to discharge them."To conclude with, it is to be mentioned that on evaluation of material and the documents on record and the facts emerging therefrom, even on taking them at their face value, disclose the existence of ingredients constituting the alleged offence," the Court further added.

Chamankar Enterprises and its three partners Krishna Shantaram Chamankar, Prashant Shantaram Chamankar and Prasanna Shantaram Chamankar were booked for irregularities in the contract for construction of Maharashtra Sadan in New Delhi, construction of RTO building in Tardeo and for SRA project in Kalina.

It was alleged that in lieu of the said contract Chimankar had allegedly paid kickbacks to the family members of then Maharashtra PWD minister Chhagan Bhujbal.However, the special court had discharged the firm and its partners from the case filed by Anti corruption bureau observing that there were no irregularities in awarding the contracts. Based on the said order the firm and its partners had moved the special court for discharge in money laundering case as they have been discharged from the predicate offence.The court however, said that 'schedule offence is not finally absolved by a Court on account of discharge.

Therefore, as per the aforesaid exposition of law, the applicants herein would not escape from the liability under PMLA.'Their lawyer Ish Jain had contended that, the Minister and the concerned officials accepted proposal of allowing the applicants firm to utilize FSI/BUA of non slum plot on slum plot under Slum Rehabilitation Scheme by the applicants firm appointed by the slum dwellers as per the rules and regulations. Also they pointed out that no irregularities were found in awarding any other contracts.It was claimed that the special court had discharged the firm and its partners from the cases, hence they should also be discharged from the Money laundering case.

The prosecution however, objected to the case saying though they have been discharged by the special courts in predicate offences, the appeals challenging those orders are still pending before the Bombay high court. The ED claimed that investigation began based on the order of the High court in a petition against Bhujbal. ED pointed pointed out that, 'There are allegations that the applicants put up bogus/fabricated financial statements before infrastructure facilities committee of the Maharashtra Government for obtaining sanction in respect of the development of the RTO office, in respect of development.

It is alleged that Shri Chhagan Bhujbal, in lieu of the sanction of development proposal, accepted money (kickbacks) through the firms/companies of his relatives and employees.'Besides, ED claimed, 'There are specific allegations that, by an elaborate conspiracy, the project of Maharashtra Sadan was given to M/s. K. S. Chamankar on a platter in defiance of rules and regulations prevalent in the matter. Total funds received by M/s. K. S. Chamankar Enterprises was Rs.280.63 crores.'