Mumbai News: Special PMLA Court Denies Bail To Accused In Multi-Crore Malegaon Money Laundering Case, Cites ‘Incriminating Evidence’

Mumbai: The special PMLA court has refused to grant bail to Seraj Memon, the Nashik resident booked in the multi-crore Malegaon money laundering case. Prima facie, the evidence demonstrates that he is involved in the offence, the court said.

Special PMLA judge RB Rote said, “It is a serious economic offence affecting the socio-economic condition of the society. According to the prosecution, Rs316.7 crore has been withdrawn by the accused persons (accrued) through cyber fraud and online gaming apps.”

Memon has been apparently involved in the movement of crime proceeds and he also attempted to show it as untainted property, the court said.

He was arrested for opening 14 accounts with the Nasik Merchants co-operative bank and five accounts with Bank of Maharashtra. These channels were later on used to transfer huge funds from various shell companies.

The ED had alleged that Memon managed the transactions in these accounts, which involved routing illegal funds worth Rs 157.78 crore. He also withdrew Rs 14.84 crore from the Nashik bank accounts, transferred Rs 13.25 crore to Mumbai through hawala channels and kept the remaining with himself, said the probe agency.

Contending the charge that he facilitated the opening of individual bank accounts, Memon argued that his act aligned with the Reserve Bank of India’s financial inclusion scheme.

The court, however, said that, “According to the ED, the applicant has acted as a key intermediary and executor, facilitating the laundering process and serving as a critical link between the shell entities and the ultimate beneficiaries of the crime proceeds.”

The judge noted that Memon didn't give explaination regarding the establishment of shell entities and heavy transactions within a short span.