₹400 Crore Money Laundering Case: Mumbai Special PMLA Court Refuses To Discharge Builder’s Son

Mumbai, Feb 06: The special PMLA court has refused to discharge Yash Machinder, the son of city-based builder Vijay Machinder, from a money-laundering case, observing that he is alleged to have used the proceeds of crime to set up his gym.

Court rejects discharge plea

Yash sought discharge, claiming that he was not named as an accused in the predicate offence. The court rejected the argument, stating that absence from the scheduled offence cannot be a ground for discharge under the Prevention of Money Laundering Act (PMLA).

“Merely because no role was found in the scheduled offence and no chargesheet has been filed against the applicant does not automatically mean he is not involved in money laundering, which is an independent and separate offence,” Special Judge RB Rote said.

ED allegations against builder

The Enforcement Directorate (ED) alleged that between 2012 and 2019, Vijay Machinder, through Ornate Spaces Private Limited (OSPL), collected advances from flat buyers for an Oshiwara project and sold the same flats to multiple buyers, thereby defrauding them.

The agency claimed that around Rs 100 crore was collected with promises of possession within three years from the commencement certificate issued on May 6, 2015, but no flats have been handed over. The ED has accused Vijay of laundering Rs 400 crore as of 2020.

Defence arguments dismissed

Yash claimed he was not actively involved in OSPL and was being prosecuted merely due to his designation as a director. His lawyer argued that there was no material to frame charges under the PMLA.

Opposing the plea, the ED said the Act applies based on the generation of proceeds of crime and a person’s involvement in activities connected to them, irrespective of charges in the predicate offence.

Public Prosecutor Sunil Gonsalves said Yash was actively involved in concealing, using and enjoying the proceeds of crime, and had received Rs 1.40 crore in his bank account, which was used for his gym business.

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Yash claimed the amount was a loan, but the court rejected the defence, noting that no documentary evidence was produced to support the claim.

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