The Supreme Court has declined to interfere with the Madras High Court’s order granting bail to former DMK functionary Jaffer Sadiq and his brother Mohamed Saleem in a money laundering case, while expressing “reservations” about the High Court’s decision.
A Bench of Justice MM Sundresh and Justice Augustine George Masih said that, although it had a prima facie reservation about the High Court’s April 21, 2025 order, it was not inclined to interfere since the order had been passed more than a year ago.
Dismissing the Special Leave Petitions filed by the Assistant Director of the Directorate of Enforcement (ED), the Bench declined to interfere with the impugned order, noting that it had been passed over a year ago. However, the Court expressed reservations regarding the decision on a prima facie basis and explicitly clarified that it would not serve as a precedent.
The ED had challenged the High Court’s decision to grant bail to Sadiq and Saleem in the money laundering case arising from three predicate offences relating to the alleged illegal export and trafficking of narcotics.
The three predicate cases were registered by Chennai Customs in 2015, Mumbai Customs in 2019 and the Narcotics Control Bureau (NCB), New Delhi, in 2024.
The 2015 Chennai Customs case concerned the alleged export of 50 kg of pseudoephedrine. The 2019 Mumbai Customs case related to an alleged attempt to export 38.867 kg of ketamine through M/s Cube Impex. The 2024 NCB case concerned the alleged trafficking of 50.070 kg of pseudoephedrine.
The ED alleged that Sadiq and Saleem dealt with proceeds of crime by concealing, possessing, acquiring or using them and projecting them as untainted property. The agency also alleged that substantial cash was deposited into their bank accounts, which did not correspond with their income tax returns.
The ED further relied on Sadiq’s statement recorded under Section 50 of the Prevention of Money Laundering Act (PMLA) on May 8, 2024, in which he allegedly admitted that certain cash investments had been acquired from narcotics-related activities.
Sadiq was arrested by the ED on June 26, 2024, and remanded to judicial custody on July 15, 2024. Saleem surrendered before the authorities on August 12, 2024 and was remanded to judicial custody the following day.
While granting bail, the Madras High Court noted that Sadiq had already secured bail in the 2024 NCB case and anticipatory bail in the 2019 Mumbai Customs case. He had not been arrested in connection with the 2015 Chennai Customs case.
Saleem had also been granted bail in the 2019 case after the Court found that he had satisfied the twin conditions under Section 37 of the Narcotic Drugs and Psychotropic Substances Act, 1985.
The High Court further noted that the movable and immovable properties allegedly acquired from the proceeds of crime had already been attached by the ED. The agency had completed its investigation and filed its complaint before the Principal Sessions Judge, Chennai, on October 18, 2024.
The prosecution had cited 19 witnesses and relied upon 190 documents, with 20 accused named in the case. Since summons had not been served on some of the accused when the bail applications were considered, the High Court concluded that the trial was unlikely to conclude in the near future.
The High Court also rejected the ED’s argument that further investigation involving foreign jurisdictions warranted continued detention. It observed that the alleged offences dated back to 2015 and that the petitioners had remained at large until their arrests in 2024, barring brief periods of custody in the predicate cases.
Holding that continued incarceration pending trial would violate the accused’s right to life and personal liberty under Article 21 of the Constitution, the High Court granted bail to both men on a bond of Rs 5 lakh each, with two sureties for the same amount.
It also observed that if the accused were found to be influencing witnesses, the prosecution could seek cancellation of bail. At the time, there was no complaint alleging tampering with evidence or attempts to influence witnesses.
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