Summary: Khilji Mohsinahmed Mustakali's request to be released on bail was denied by the Bombay High Court because he was involved in a complicated case of moving illegal money around using fake companies and big financial transactions.
On November 7, 2024, a police report (No. 295) was filed at Malegaon Chawani Police Station, Nashik, which led the Enforcement Directorate (ED) to start an investigation on November 11, 2024. The complaint was against Seraj Ahmed and others for using fake identities to set up fake companies and open bank accounts in Nashik.
The accused, including Khilji, reportedly collected identity documents by tricking people with fake job promises. These documents were used to open 14 bank accounts in NAMCO Bank, Nashik, where more than ₹112.72 crores were moved through 200 companies in just two months.
"The money was moved through online banking, creating fixed deposits in the names of unsuspecting individuals," reported the court documents.
The investigation showed that the accounts were used for moving money in circles and hiding money from illegal online activities. Khilji and his group were found to be working for Mehmood Bhagad, also known as Challenger King, who planned the operation.
Khilji's lawyer, Mr. Aabad Ponda, argued that the charges under the Prevention of Money Laundering Act (PMLA) did not apply because no new property was created. They also said that gambling, which was claimed to be where the money came from, is not a crime listed under PMLA.
Judge Shyam C. Chandak turned down the bail, noting there was strong evidence of Khilji's role in money laundering and a risk that he might mess with the evidence if he were released.
"The court found that the accused played a crucial role in laundering huge sums of money," Judge Chandak noted.
The court stressed the seriousness of the crimes under sections 318, 336, and 338 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) and PMLA, pointing out the sneaky methods used by the accused to trick financial systems.
