SC seeks Gujarat's reply on bail plea of Surat based financier

The Supreme Court today sought a response from Gujarat government on the bail plea of a Surat- based financier in a money laundering case registered against him for allegedly illegally converting Rs 1 crore worth of old notes into new currency after demonetisation.

A bench of Justices J Chelameswar and S Abdul Nazeer sought the response from state government in two weeks.

Senior advocate Mukul Rohatgi said that charge sheet has been filed in the case and there was no point keeping the person in custody as the investigation has been completed.

"I am not involved in gun-running, narcotics or smuggling. If Rs 1 crore in new currency was found from me during demonetisation, then Income Tax department can tax me," he said.
 

The case had hogged limelight during the demonetisation period as Jignesh Bhajjiawala used to sell tea before turning into a financier in the diamond city of Surat.

The Enforcement Directorate (ED) has arrested Bhajjiawala on January 20 and charge sheet has been filed against him on March 17, before a special Prevention of Money Laundering Act (PMLA) court in Ahmedabad.

The agency had registered a criminal FIR against Bhajiawala and his sons Jignesh and Vilas based on a CBI FIR against him.

The CBI had registered the FIR after the Income Tax department conducted searches and seized gold and cash from his premises as part of their operation in December last year to check black money following ban on high value currency notes.

The agency had said the probe had revealed that Bhajjiawala had converted a huge amount of his unaccounted money post-demonetisation into new high denomination currency, through collusion with officials of private and public sector banks and private persons by impersonation and by using forged documents.

The IT department had recovered Rs 1.45 crore cash, including about Rs 1.05 crore in new currency notes, bullion worth Rs 1.49 crore, gold jewellery valued at Rs 4.92 crore, other ornaments worth Rs 1.39 crore.