A special PMLA court in Mumbai has granted bail to builder Lalit Tekchandani, who had been in judicial custody for 14 months in connection with a money laundering case involving ₹400 crore. The court cited the prolonged investigation and lack of progress in initiating the trial, emphasizing that continued detention would infringe upon Tekchandani’s fundamental rights under Article 21 of the Constitution.

The Enforcement Directorate (ED) had initiated the probe after allegations surfaced that Supreme Construction & Developer Pvt Ltd, managed by Tekchandani, collected ₹400 crore from homebuyers for a Taloja housing project but failed to deliver flats or return the money. The court noted that the ongoing investigation was incomplete, with 596 witnesses expected across related cases and over 44,000 pages of evidence, making a swift trial unlikely. The judge criticized the prosecution for submitting a draft charge without officially concluding the investigation, possibly as a tactic to deny bail. Given Tekchandani’s permanent residence in Mumbai and societal ties, the court concluded he posed no flight risk and should be released on bail.

This case highlights concerns over prolonged pre-trial detentions in money laundering cases, where investigations can extend over long periods, delaying justice. The court’s decision underscores the importance of balancing the need for thorough investigations with the fundamental rights of the accused.

Sources