The Bombay High Court has held that ₹25 crore received by builder Avinash Bhosale’s company ABIL from Sanjay Chhabria in February 2019 did not constitute proceeds of crime, rejecting the Enforcement Directorate’s claim that the transaction was linked to money laundering.
The court set aside the provisional attachment of ₹25 crore over two properties and dismissed the ED’s plea challenging their release. The attached assets included a 6,143 square metre plot in Pune held in the name of Samit Realty and a 20,000 square metre plot in Nagpur held in the name of Gauri Bhosale.
A division bench of Justices A S Gadkari and Kamal Khata allowed Bhosale’s appeal while rejecting the ED’s challenge.
FCRF’s Chief AI Officer Certification Returns on November 14 to Prepare Future AI Leaders
Court Finds No Illegal Link in ₹25 Crore Transaction
The ED had alleged that proceeds of crime worth ₹3,983 crore originated from YES Bank through investments and disbursements to Dewan Housing Finance Corporation Limited, including investments in bonds and non-convertible debentures.
The agency further alleged that Bhosale and his entities, including Nibhodh Realty, Consultancy and ABIL Dairy, received proceeds of crime amounting to ₹164.64 crore.
According to the ED, ₹25 crore received by ABIL from Chhabria in 2019 formed part of those alleged proceeds.
The High Court, however, held that the payment was made under an agreement for sale of a dairy business executed in 2016 and that the first payment had also been made at that time. The court said it could not accept that the balance amount, paid three years later, could automatically be linked to proceeds of crime.
HC Questions ED’s Money-Laundering Theory
After hearing senior counsel Aabad Ponda for Bhosale and ED special counsel Prashant Mishra, the court said it was unable to understand how official banking transactions carried out in the ordinary course of business could be treated as proceeds of crime.
The High Court said money received by DHFL from YES Bank, whether as an investment or a loan, could not by itself be considered illegal.
It further held that subsequent transactions involving those funds could not automatically be treated as proceeds of crime.
The court examined the transactions independently and said there was no nexus between them that could establish the alleged money-laundering link.
Attachment Over Pune and Nagpur Properties Set Aside
The provisional attachment concerned two properties whose combined attachment value was ₹25 crore.
One was a Pune plot measuring 6,143 square metres in the name of Samit Realty, while the other was a 20,000 square metre plot in Nagpur held in the name of Gauri Bhosale.
The High Court set aside the attachment imposed through the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.
The bench also dismissed the ED’s appeal seeking to prevent the release of the properties, holding that the agency had failed to establish the necessary link between the ₹25 crore payment and alleged proceeds of crime.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
