The Supreme Court on Thursday has granted bail to Chhattisgarh businessman Sunil Dammani, who was arrested by the Enforcement Directorate in August last year in connection with a money laundering case tied to the Mahadev illegal gambling app.
The decision was made by a bench comprising Justices J.B. Pardiwala and Manoj Misra, who noted that Dammani has been in custody since August 23, 2023. The court set aside the Chhattisgarh High Court’s order, which had denied him bail.
The bench stated, “Without saying anything on merits, we are of the view that the appellant may be released on bail subject to bail conditions.” Dammani is to be released on bail, provided he is not required in any other investigation. He must also report to the ED office in the concerned district every 15 days and is prohibited from leaving the country without prior permission from the trial court.
As the hearing commenced, senior advocate Vikas Pahwa, representing Dammani, emphasized that the businessman had already spent 14 months in jail. He highlighted that the principal accused in the case had not cooperated with the investigation, and that the trial had yet to begin.
In contrast, Advocate Zoheb Hossain, representing the Enforcement Directorate, argued against granting bail. He mentioned that there are 45 accused in the case and accused Dammani of being a hawala operator who allegedly facilitated the illegal transfer of over ₹5,000 crore abroad. Hossain also pointed out that key conspirators remain at large and red corner notices have been issued against them.
Despite the ED’s opposition, the Supreme Court acknowledged that Dammani had already been incarcerated for a substantial period and was granting bail without delving into the merits of the case. The court took note that the ED had already filed a complaint (charge sheet) in the matter.
This decision came in response to an appeal filed by Dammani challenging the Chhattisgarh High Court’s July 26 order, which had rejected his bail plea. The ED arrested Dammani alongside three others on August 23 last year for their alleged involvement in the Mahadev app money laundering scheme.
The central probe agency had conducted searches at the properties of ten individuals, including Vinod Verma, a political advisor to former Chhattisgarh Chief Minister Bhupesh Baghel.
In addition to Dammani, his brother Anil Dammani, Chhattisgarh Police Assistant Sub-Inspector Chandra Bhushan Verma, and Satish Chandrakar, all residents of Raipur, were also arrested in connection with the case. The ED’s investigation stems from a 2022 FIR filed by state police against the illegal gambling app at the Mohan Nagar police station in Durg district.
According to the ED, the Dammani brothers own a jewelry shop and a petrol pump, and they allegedly played a significant role in hawala transactions. It is also alleged that ASI Verma accepted bribes from the other accused to protect them from police action and may have even paid other police officials.
