Bombay HC Grants Bail To Builder Vijay Machinder In ₹152-Crore ED Money Laundering Case Over Undelivered Flats

Mumbai: The Bombay High Court has granted bail to builder Vijay Machinder, accused of failing to deliver 152 flats meant for UTI employees, in a money laundering case registered by the Directorate of Enforcement (ED), noting prolonged incarceration and delay in trial.

Justice Ashwin Bhobe Rules Continued Custody Unwarranted

Justice Ashwin Bhobe, in an order dated April 6, allowed Machinder’s bail plea upon furnishing a bond of ₹5 lakh with sureties. The court held that continued custody was unwarranted, observing that the applicant was entitled to bail solely on the ground of long incarceration and the delay in commencement of trial. It added that further detention pending trial was not necessary.

Machinder, a director of Ornate Spaces Pvt Ltd, was arrested by the ED on January 3, 2024 under the Prevention of Money Laundering Act (PMLA). The case stems from a predicate offence initially registered at Oshiwara police station in December 2021 and later transferred to the Economic Offences Wing (EOW), Mumbai.

Prosecution Alleges Tripartite Agreement Violation

According to the prosecution, Machinder had entered into a tripartite agreement with MHADA and a housing society to construct 152 flats for UTI employees. However, he allegedly failed to complete the project despite collecting funds. The ED has further alleged that he sold flats to third parties, forged documents, and diverted the proceeds of crime for personal and business purposes.

Challenging the rejection of his bail plea by the special PMLA court on December 5, 2024, Machinder approached the High Court. His counsel, Sundeep Karnik, argued that the maximum punishment in the case is seven years and that the accused has already spent over two years in custody. He also pointed out the voluminous nature of the chargesheet, which runs into 38 volumes and over 14,000 pages, with 14 prosecution witnesses yet to be examined.

ED Opposes Bail Citing Flight Risk and Gravity of Charges

Opposing the plea, ED’s special counsel Prashant Mishra contended that the delay in trial could not be attributed to the prosecution and that the threshold for bail based on prolonged incarceration had not yet been met. Intervenors representing flat purchasers also opposed the plea, citing the gravity of allegations and the possibility of the accused absconding.

However, the High Court found that the prosecution failed to show that the delay was caused by the accused. It noted that charges have not yet been framed and there is no likelihood of the trial commencing in the near future. The court also observed that an undertrial would not benefit from delaying proceedings while in custody.

Importantly, the court recorded that the ED had not expressed any apprehension regarding witness tampering or influencing evidence. Considering that Machinder has spent nearly 27 months in custody and the trial is yet to begin, the court held that continued detention was unjustified and granted bail.

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