MUMBAI: The Bombay High Court on Tuesday granted bail to Suraj Chavan, who was arrested last January for his alleged involvement in a money laundering case connected to the ‘khichdi scam’ during the COVID-19 pandemic.
Chavan, through his senior counsel Ashok Mundargi and advocate Harshad Bhadbhade, challenged his arrest under the Prevention of Money Laundering Act (PMLA) before the High Court. Last October, the High Court directed the Enforcement Directorate (ED) to respond to Chavan’s petition. Hiten Venegaonkar, the ED counsel, opposed his bail plea, stating that the extent of proceeds from the crime made him ineligible for bail. Venegaonkar also claimed that Chavan “has been found guilty of receiving illegal gains in his bank account from M/s. Force One Multi Services.”
The case is linked to an alleged financial irregularity in the assignment of contracts for distributing khichdi to migrant workers by the Brihanmumbai Municipal Corporation (BMC) during the COVID-19 lockdown.
Chavan’s petition argued that the case was based on “conjectures and surmises” and that there was no basis for the allegations against him. Bhadbhade further argued that the arrest did not comply with the mandated legal procedures under the special Act, and that no notice was issued against him, thus violating his fundamental rights.
The accused in the case—two companies—allegedly secured contracts to supply khichdi at an inflated price of Rs 33 per 100-gram packet, with an additional GST charge, despite not meeting the eligibility criteria.
The alleged irregularities in the khichdi contract caused the BMC to lose over ₹6 crore. Chavan was accused of using “political influence” to facilitate the contracts for Force One Multi Services and of unlawfully enriching himself by Rs 1.35 crore as proceeds of crime.
The FIR was registered by Agripada police station in Mumbai on January 9, 2023. On October 17, 2023, the ED filed its complaint and arrested Chavan on January 17, 2024. On September 9, 2024, a special sessions court judge rejected his bail plea, prompting him to approach the High Court for bail. On February 4, 2025, the High Court granted him bail on a personal recognizance bond and surety of Rs 1 lakh.
Justice Milind Jadhav, sitting singly, in his 34-page order, stated, “Since the case before me is restricted to the grant of bail due to the long incarceration of the under-trial accused/applicant, after he has fully cooperated in the investigation and made all disclosures, I refrain from commenting on the merits of the matter. Any comment made above on the merits is cursory and only to the extent of considering the applicant’s case for grant of bail and is not an opinion expressed by the Court to influence the trial, which should be noted.”
The judge added that Chavan had been in jail for over a year, and the trial was unlikely to be concluded soon. He said, “If the applicant’s detention continues, it would infringe upon his fundamental right under Article 21 of the Constitution of India for a speedy trial and guarantee of personal liberty. The principal allegation that the applicant was in an influential position in the State at the time of the alleged incident, as put forth by the prosecution, may have been relevant, but the situation no longer prevails under the current dispensation. Therefore, any apprehension of the prosecution regarding tampering with evidence can be addressed by imposing appropriate conditions.”
The conditions of bail include that Chavan must appear once every month on the third Saturday between 10am and 12 noon for the first three months and thereafter as and when called.