Mumbai: In a detailed order granting bail to actor and businessman Sachiin Joshi (37), a special PMLA court has observed that no prima facie case of money laundering is made out against him. “…Material two steps of layering and integration are prima facie missing from the allegations in the complaint and materials supporting it. This is the most important foundational fact which ED failed to establish prima facie,” special judge MG Deshpande said.

Joshi was arrested by the Enforcement Directorate on February 14, 2021. He was released from jail on Monday. Joshi’s lawyers, Abad Ponda and Subhash Jadhav, had submitted extensive arguments, telling the court that no case of money laundering was made out against him.

The ED had submitted its chargesheet against Joshi, Omkar Group promoters Babulal Varma, Kamal Kishor Gupta and 14 firms associated with them. Omkar Group promoters allegedly took Rs 410 crore from Yes Bank to construct rehabilitation buildings for slumdwellers under the Slum Rehabilitation Authority (SRA) scheme at Wadala but diverted the money to their group companies. Joshi allegedly helped Omkar Group for the layering of Rs 87 crore. The loan money was used for other purposes, alleged the ED. Referring to the evidence, in the 33-page order the court said prima facie it appeared that Joshi was not involved directly or indirectly in dealing with proceeds of crime.

It observed that prima facie it appeared that there are certain business transactions between Joshi and his group companies with ORDPL (Omkar Realtors and Developers Pvt Ltd) and their group companies. “These transactions have absolutely no nexus with Rs 410 crores (term loan-proceeds of crime). Bank entries relate to such other transaction having no nexus with POC (proceeds of crime). Hence, no prima facie case of money laundering is made out against applicant Sachin Joshi,” the special judge said.

The court also said that it was very astonishing that the ED’s complaint included many transactions between the Omkar Group and Joshi from even before the time the loan amount was actually disbursed by Yes Bank. “It is necessary to note such entries to understand how ED has put for-ward their case by making mingling various amounts claiming them being POC, when POC was not even conceived,” the court said.

The court said there is no documentary evidence to indicate the money travelled from ORDPL’s YES Bank account to its ICICI Bank account, and further to accounts of its other group companies from where it finally reached Joshi and his group companies. “Unless this basic foundational trail is established the applicant cannot be held responsible for any placement, layering or integration in the process of money laundering,” the court said.

The court said “it will be far-fetched” to hold that Joshi was aware that Varma, Gupta and others generated the proceeds for crime and he was the material link in placement, layering and integration.