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A Supreme Court bench of Justices Chandrachud and Surya Kant today dismissed the plea for interim release filed by NCP leader and Maharashtra State Minister Nawab Malik who was arrested by the Enforcement Directorate (ED) for alleged money laundering and active involvement in terror funding in connection with a 1999 land deal with don Dawood Ibrahim’s sister.

The bench opined that the investigation is in too nascent a stage to warrant Supreme Court’s interference. The court further noted that with regard to the observation of Bombay High Court on merits, “it is clarified is confined to the question of whether interim relief was required to be granted and shall not come in the way of parties taking recourse to the rights available in law.”

Appearing for Malik, Kapil Sibal, Sr. Adv submitted that Malik was arrested in 2022 for an offence and that the Special court will not consider a retrospectivity. Sibal argued that there is not predicate offence in this case.

The court was however not inclined to interfere with the order of the Bombay High Court.

The Bombay High Court had in March refused interim release to NCP leader & state minister Nawab Malik, who was arrested by the Enforcement Directorate (ED) for alleged money laundering and active involvement in terror funding in connection with a 1999 land deal with don Dawood Ibrahim’s sister.

The division bench of Justices PB Varale and SM Modak passed the order on Malik's habeas corpus petition seeking interim reliefs of immediate release.

"As certain debatable issues are raised, they require to be heard at length. Considering the grounds assigned by us we are not inclined to allow the prayers in the interim application. Interim Applications rejected,” observed the bench.

On March 7, the Maharashtra Minister and NCP leader was sent to 14 days judicial custody by a Special PMLA Court in Mumbai. A Special Judge (PMLA) on March 3 had extended Mohammed Nawab Mohammed Islam Malik @ Nawab Malik's remand to the Enforcement Directorate (ED) till March 07, 2022.

Earlier, on February 26, 2022 Malik was remanded in the custody of the Enforcement Directorate till March 3, 2022.

“Prima facie, there are reasonable grounds to believe that the accusations are well-founded under PMLA. The investigation is at the nascent stage. Having regard to the serious allegations and statements in support of it, I am of the considered view that custodial interrogation of the accused is necessary to unearth all the ramifications involved in the crime….”, the Special Judge had observed.

Relying on Section 3 of the Prevention of Money Laundering Act, 2002 (PMLA) Judge Rokade had previously stated that, the offence of money laundering is continuing in nature and it continues till such time that a person enjoys the proceeds of crime by its concealment or possession or acquisition or use of untainted property or use or projecting the same as untainted property.

“The proceeds of crime have traversed since last 20 years and more. Therefore, sufficient time is required to be granted for the investigation of the offence…”, the Court had held while passing the remand order.

Further, rejecting submissions advanced on behalf of Malik that he was illegally arrested, the Court had noted that Malik had not co-operated with the investigation on crucial aspects, grounds of arrest were communicated to Malik, and there was substantial compliance under Section 19 of the PMLA.

Malik was arrested on February 23, 2022, under section 19 of the Prevention of Money Laundering Act, 2002 (PMLA).

Cause Title: Mohammed Nawab Mohammed Islam Malik @ Nawab Malik Vs Director ED