Nawab Malik Charged with Money Laundering: Mumbai Court Clears Trial Under PMLA

A special court in Mumbai has framed money-laundering charges against former Maharashtra minister and Nationalist Congress Party (NCP) leader Nawab Malik and two others in a case filed by the Enforcement Directorate (ED) in 2022. Special Judge S R Navander stated that there is sufficient material on record to frame charges against all the accused, paving the way for the trial to proceed under the Prevention of Money Laundering Act (PMLA).

The charges were framed against Malik and two firms linked to his family – Malik Infrastructure and Solidus Investments. Additionally, charges will be framed separately against the fourth accused, Sardar Khan, who is currently serving life imprisonment in another case. Malik and the two firms, through their directors or partners, pleaded not guilty in the case, setting the stage for the trial under sections of the PMLA.

According to the court's order, Nawab Malik, in collusion with D-Company members Haseena Parkar, Salim Patel, and Sardar Khan, participated in the laundering of illegally usurped property, which constitutes 'proceeds of crime' under Section 2(1)(u) of PMLA. The said property has been attached under Section 5(1) of PMLA. The court further noted that rent collected through M/s Solidus Investments Pvt Ltd and M/s Malik Infrastructure, both controlled by the Malik family, also constitutes proceeds of crime within the meaning of Section 2(1)(u) of PMLA.

The central agency, the ED, alleged that land in the Goawala compound in Kurla belonging to two women, Munira Plumber and Marium Goawala, was usurped by Haseena Parkar, the sister of fugitive gangster Dawood Ibrahim, through her associate Salim Patel. The ED claimed that the power of attorney for the land was forged and transferred without authorization. Subsequently, the land was purchased by Solidus Investments.

The agency further stated that Solidus collected rents from tenants until 2010-11, and then Malik Infrastructure was formed to continue the collection of rent, as well as for the repair and maintenance of the premises. Malik Infrastructure, while seeking discharge from the case, argued that it entered into the lease transaction with Solidus only in 2010-11, and since the firm was not in existence before that, the charges against it cannot be framed.

The fourth accused, Sardar Khan, is currently serving a life sentence in Amravati jail in connection with the 1993 Bombay Blasts case. The documents for framing charges against him will be sent separately to the prison.

This case highlights the ongoing efforts of the Indian legal system to combat money laundering and the illegal acquisition of property, especially when such activities are linked to organized crime. The framing of charges against Nawab Malik and the related firms marks a significant step in ensuring accountability and justice.