Mumbai, July 28, 2026: The Bombay High Court has quashed money laundering proceedings initiated against DB Realty Managing Director Vinod Goenka and the company in a case linked to former Maharashtra Deputy Chief Minister Chhagan Bhujbal, holding that the prosecution could not continue after the company from which the alleged proceeds of crime were traced had already been discharged.

High Court Quashes Proceedings

Justice Ashwin D. Bhobe ruled that the foundation of the Enforcement Directorate's (ED) case no longer survived because Parvesh Construction Pvt. Ltd., from whom Goenka and DB Realty were alleged to have received the proceeds of crime, had been discharged after a special court found that no scheduled offence existed and, therefore, there were no "proceeds of crime".

“Considering that Accused No. 4 (M/s Parvesh Construction Pvt. Ltd.), from whom the petitioners are alleged to have received the proceeds of crime, has been discharged... no scheduled offence exists and consequently, no proceeds of crime... the decisions in Vijay Madanlal Choudhary and Nilesh J. Thakur squarely apply to the case of the petitioners,” the court said.

Senior advocates Vikram Nankani and Aabad Ponda, along with advocate Sajal Yadav, appeared for the petitioners.

ED's Allegations

The ED had alleged that Bhujbal and others generated proceeds of crime through scheduled offences and that Goenka and DB Realty knowingly participated in a sham real estate transaction.

According to the agency, DB Realty paid Rs 5 crore to Parvesh Construction as an advance for a proposed land acquisition project. Although the money was later returned, the ED claimed the transaction was merely a façade to route and legitimise tainted funds.

Goenka and DB Realty challenged the proceedings, arguing that Parvesh Construction had already been discharged in both the scheduled offence and the Prevention of Money Laundering Act (PMLA) case.

They relied on the Supreme Court's judgment in Vijay Madanlal Choudhary, contending that once the alleged source of the proceeds of crime had been cleared, the money laundering case against them could not continue.

The ED did not dispute that the discharge orders had attained finality.

Court Relies On Supreme Court Ruling

The High Court noted that the special court had concluded that the money involved in the transaction did not constitute "proceeds of crime".

Referring to the Supreme Court's ruling, Justice Bhobe observed that where there are no proceeds of crime arising from a scheduled offence, prosecution under the PMLA cannot be sustained.

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Bombay HC Quashes Money Laundering Case Against DB Realty MD Vinod Goenka; Cites No Scheduled Offence, Proceeds Of Crime

The Bombay High Court has quashed the ED's money laundering case against DB Realty MD Vinod Goenka, holding that the prosecution could not continue after the alleged source of the proceeds of crime had been discharged and no scheduled offence survived.