Bombay High Court Dismisses ED Appeals, Diverts Half the Interest on Rs 46.5 Crore Deposit to Armed Forces Fund

Overview

• A bench of Justices Ajay Gadkari and R. R. Bhonsale upheld the PMLA Appellate Tribunal’s 2019 ruling in favor of Shapoorji Pallonji & Company Ltd.
• The Registry was directed to return the Rs 46.5 crore principal that the ED deposited in 2019 to SPCL.
• Fifty percent of the interest accrued on that deposit must be paid to the Armed Forces Battle Casualties Welfare Fund to balance equities and support families of fallen soldiers.
• The judges held the ED had not proved bribery or any criminal link to SPCL’s payments to Nitesh (Nilesh) Thakur.
• The case arose from Rs 141.5 crore advanced from 2005 for about 900 acres near Alibaug and Pen, recorded as tax-booked advances during periods when Thakur was on unsanctioned leave.