Mumbai Court Rejects Discharge Plea in Dawood Ibrahim-Linked Money Laundering Case

A special court in Mumbai has refused to discharge a real estate company owned by former Maharashtra minister and Nationalist Congress Party (NCP) leader Nawab Malik’s family in a money laundering case. The court stated that there is “sufficient material on record” to frame charges against the company and other accused.

Malik and his family run Solidus Investments Private Limited and Malik Infrastructure, both of which have been named by the Enforcement Directorate (ED) in a case connected to fugitive gangster Dawood Ibrahim and his close aides.

Malik Infrastructure had filed a plea before the court seeking to be released from the case, arguing that the ED’s allegations were based only on assumptions. The company contended that the case “rests on surmises and conjectures.” However, the court rejected this argument.

Special Judge for MPs and MLAs cases, Satyanarayan Navander, dismissed the plea on November 11. The detailed order, which became available on Thursday, stated that “it is evident that Nawab Malik, in connivance with D-Company members Haseena Parkar, Salim Patel, and accused Sardar Khan, participated in laundering of illegally usurped property,” which the court said amounts to “proceeds of crime.”

The court further mentioned that the property in question has already been attached under the Prevention of Money Laundering Act (PMLA). The order also observed, “Further, rent collected through Solidus Investments Pvt. Ltd and M/s Malik Infrastructure, both controlled by the Malik family, constitute proceeds of crime within the meaning of Section 2(1)(u) of PMLA.”

Concluding its decision, the court remarked, “There exists sufficient material on record to frame charges against all the accused.” According to the Enforcement Directorate, the money laundering case against Malik and his firms is linked to an FIR filed by the National Investigation Agency (NIA) against Dawood Ibrahim, who is a designated global terrorist and one of the main accused in the 1993 Mumbai serial bomb blasts case, along with his associates under the Unlawful Activities (Prevention) Act (UAPA).

The ED had arrested Nawab Malik in February 2022 for his alleged involvement in the property transactions linked to Dawood Ibrahim’s network. Malik, who was then a senior NCP leader and minister in the Maharashtra government, was accused of being part of a property deal that benefited individuals connected to the D-Company.

At present, Nawab Malik is out on bail. However, the latest order means the case will move ahead, and the court will now proceed to frame charges against Malik, his companies, and others named in the charge sheet. The ruling marks another setback for Malik and his family as the court has made it clear that there is enough evidence to go forward with the trial under the provisions of the PMLA.

The Enforcement Directorate’s investigation continues to focus on the alleged use of property and rent income as part of laundering proceeds connected to Dawood Ibrahim’s criminal operations.