Shiv Sena MP Bhavna Gawli’s aide Saeed Khan may not be convicted for money laundering offence, says Bombay HC in detailed order

The Bombay High Court has said that Shiv Sena MP Bhavna Gawli’s aide Saeed Khan may not be convicted for a money laundering offence.

While granting bail to Shiv Sena MP Bhavna Gawli's aide Saeed Khan Shergul Khan, the Bombay High Court said, "considering the totality of the circumstances, prima facie the offence of cheating is not made out and in all probability, Khan may not be ultimately convicted for offence of money laundering." The court had granted the bail earlier to Khan, however it is now that the detailed order has been made available.

Gawli's aide, Khan had approached the court for bail. Khan was earlier arrested by the Enforcement directorate (ED) in 2021 and the allegations against him are that he, in connivance with the co-accused Bhavna Gawali, siphoned off a huge amount of money from Mahila Utkarsha Pratishthan, Risod, for his personal use.

Khan and the co-accused converted the Trust into Section 8 Company on the basis of forged and fabricated documents, allegedly diverted an amount of Rs 3.75 crores in the account of a person named Deepak Prajapati and his family members in various tranches. The said amount was later transferred in the account of Company named Master Plan Finance Ltd., of which Deepak Prajapati is the director.

It is alleged by the agency that Deepak Prajapati, who is engaged in providing accommodation entries and bogus loans, provided a transaction entry of 3.58 crore to Khan under the garb of loan. The amount, which was provided as loan was utilised by Khan for purchase of a property i.e. office No.16, Nariman Bhavan, Nariman Point, Mumbai. It is alleged that Khan was an active participant in the generation of proceeds of crime and that he was actually involved in the laundering of said proceeds of crime as defined under Section 3 of the PMLA.

Advocate Satish Maneshinde, appeared for Khan and submitted that he had no direct relationship with the Trust, except for heading the Fraud Detection Committee. He was not a signatory to the bank account of the Trust. In fact, the signatories to the bank account of the Trust were Bhavna Gawali and Ashok Gandole. Bhavna Gawali had authorised Ashok Gandole to operate the Bank account of the Trust till July-2019 and thereafter the accounts were overseen by Bhavna Gawali and her relatives, said Maneshinde.

Maneshinde, further submitted that in view of suspicious transactions and financial discrepancies in the account of the Trust, Bhavna Gawali decided to convert the Trust into a Company to safeguard the interest of the Trust and to ensure transparency in its financial dealings. The decision to convert the Trust into Company was confirmed by the other Trustees. In pursuance of the resolution, no objection accorded by the Charity Commissioner and Pusad Bank, the Trust came to be converted into a Company. Maneshinde further submitted that there is no material on record to indicate that Khan was in any way responsible for the said decision and /or for converting the Trust into a Company.

Advocate Hiten Venegaonkar, appearing for the agency, submitted that Khan in connivance with Bhavna Gawali has taken over control of the Trust by converting the Trust into Section 8 Company on the basis of forged and fabricated documents. He argued that the amount from the Trust is withdrawn in cash and that the said crores of Rupees has been utilised for personal use.