Bombay HC Grants Bail To Nashik's Seraj Memon In ₹157-Crore Malegaon Money Laundering Case

The Bombay High Court has granted bail to a Nashik resident booked in the multi-crore Malegaon money laundering case, noting that the trial is likely to take considerable time to conclude.

Memon arrested Dec 2024 for opening 19 accounts

Seraj Memon was arrested on December 12, 2024, for his alleged role in opening 14 accounts with The Nasik Merchants Co-operative Bank Ltd and five accounts with Bank of Maharashtra. According to the Enforcement Directorate (ED), these accounts were subsequently used to route large sums from companies that were later found to be paper entities.

The ED alleged that Memon managed transactions involving about Rs157.78 crore routed through these accounts. He was also accused of withdrawing approximately Rs14.84 crore in cash from NAMCO Bank accounts. Memon allegedly coordinated the transfer of around Rs13.25 crore out of the cash withdrawn from Malegaon to Mumbai through hawala channels. The ED claimed that he retained Rs1.58 crore from the amount.

Defence argued trial yet to commence despite custody

Appearing for Memon, advocate Sandeep Karnik argued that the trial had not yet commenced despite his prolonged incarceration. He pointed out that the chargesheet runs into five volumes comprising around 7,000 pages and that the prosecution proposes to examine 40 witnesses, indicating that the trial could take considerable time.

The defence sought bail primarily on the ground of prolonged incarceration and delay in commencement of trial.

Accepting the contention, the High Court held that Memon was entitled to bail on the sole ground of long incarceration and the delay in beginning the trial.

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