Maharashtra Sadan Scam: Chamankar brothers get aid as Bombay HC quashes PMLA case linked to Chhagan Bhujbal

In a significant aid to builders Krishna and Prasanna Chamankar, prime accused within the alleged Maharashtra Sadan rip-off linked to Maharashtra Minister and Nationalist Congress Party (NCP) veteran Chhagan Bhujbal, the Bombay High Court on Tuesday (September 16, 2025) quashed a money-laundering case lodged in opposition to them by the Enforcement Directorate (ED). 

A Division Bench of Justices A.S. Gadkari and Rajesh S. Patil allowed a writ petition filed by the Chamankar brothers and their agency, Okay.S. Chamankar Enterprises, setting apart the cost sheet in PMLA case from 2016. The case stemmed from ED’s Enforcement Case Information Reports (ECIRs) registered in 2015 following an Anti-Corruption Bureau (ACB) probe into irregularities in development contracts awarded throughout Mr. Bhujbal’s tenure as Public Works Department (PWD) Minister.  

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The rip-off allegations arose from the awarding of contracts for development of the Maharashtra Sadan in New Delhi, the High Mount Rest House in Mumbai, and buildings for the Regional Transport Office (RTO). The Chamankar agency was accused of fraudulently securing these initiatives in collusion with Mr. Bhujbal, resulting in registration of an ACB FIR in 2015. The ED later initiated money-laundering proceedings underneath the PMLA. 

However, on July 31, 2021, a particular ACB court docket discharged the Chamankars from the predicate offence, holding there was no materials to determine wrongdoing. The trial court docket recorded that the agency had executed the initiatives “as per the contract.” Crucially, this discharge order was by no means appealed by the prosecution and thus attained finality. 

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Senior counsel for the Chamankars, advocate Shreeyash Lalit submitted that after they have been discharged of the scheduled (predicate) offence, no prosecution might proceed underneath the PMLA. They relied on the Supreme Court’s authoritative ruling in Vijay Madanlal Choudhary vs. Union of India, which held that money-laundering costs can’t survive as soon as the bottom offence is quashed or all accused are acquitted. 

The ED, represented by advocate Manisha Jagtap, opposed the plea, contending that PMLA prosecution might nonetheless proceed even when the predicate offence was quashed. They cited rulings, together with the Jammu and Kashmir High Court’s Niket Kansal judgment and the Supreme Court’s determination in Pavana Dibbur vs. Directorate of Enforcement. 

Rejecting ED’s contentions, the High Court held that the Chamankars have been entitled to the advantage of discharge in the primary case.  

“In view thereof, in response to us, the conclusion enumerated by the Hon’ble Supreme Court in para No.382.8 within the case of Vijay Madanlal Choudhary squarely applies to the Petitioners and subsequently the ECIR and the cost sheet filed thereof, registered by Respondent No.2 qua the Petitioners, deserves to be quashed and put aside,” the order stated. The Bench thus quashed the money-laundering case and allowed the petition by way of the aid sought.