High Court Grants Bail in Rs 175 Crore Alleged Money Laundering Case

The High Court of Chhattisgarh at Bilaspur on 11 May granted regular bail to Shashank Chopda in a money laundering case linked to supply contracts for medical equipment and reagents awarded by the Chhattisgarh State Medical Services Corporation Limited (CGSMSCL). A Bench led by Chief Justice Ramesh Sinha observed that the Enforcement Directorate’s calculation of “Proceeds of Crime” appeared prima facie “presumptuous” and unsupported by proper financial analysis while considering the applicant’s plea under Section 45 of the Prevention of Money Laundering Act (PMLA). The Court held that “The calculation of proceeds of crime appears ex facie incorrect and presumptuous, particularly when statutory tax liabilities and operational expenses have not been accounted for.”

The Enforcement Directorate (ED) had arrested Shashank Chopda on 18 February 2025, alleging that firms connected with him, including Mokshit Corporation, secured government contracts through conspiracy and generated unlawful gains exceeding Rs 175 crore by inflating prices of medical supplies. The ED claimed that these amounts constituted proceeds of crime under the PMLA and relied on attachments of properties and financial transactions during the investigation.

The applicant argued before the Court that the ED had mechanically treated gross receipts as illegal gains without deducting legitimate business expenditures. It was specifically submitted that the agency ignored approximately Rs. 76 crore paid towards GST and nearly Rs. 65 crore paid as Income Tax, along with other operational costs incurred during the execution of the contracts. The defence further contended that the applicant had remained in custody for almost 15 months, the investigation was complete, and continued incarceration would serve no useful purpose. “Bail is the rule and jail is the exception, particularly where investigation stands completed and prolonged detention becomes punitive in nature.”

The High Court noted that the ED’s case primarily rested on broad financial estimations rather than a direct tracing of specific proceeds of crime. It was observed that the prosecution had not satisfactorily established a clear nexus between the attached properties and the alleged tainted money. The Court also took note of the absence of prior criminal antecedents against the applicant and the fact that the trial was likely to take considerable time.

While examining the twin conditions prescribed under Section 45 of the PMLA, the Court found that the applicant had made out a case for the grant of bail at the present stage. Thus, the Court directed release of the applicant on furnishing a personal bond of Rs 1 lakh with two sureties of the like amount, subject to conditions including regular appearance before the trial court and surrender of passport.

To Read Full Judgment, Download PDF Given Below.