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 an alleged ‘khichdi scam’ during the Covid-19 pandemic.
Chavan, through his Senior Counsel Ashok Mundargi with Advocate Harshad Bhadbhade, questioned his arrest under the Prevention of Money Laundering Act (PMLA) before the HC. Last October, the HC directed the Enforcement Directorate (ED) to respond to Chavan’s petition.
The case is linked to an alleged financial irregularity in assigning contracts for the distribution of khichdi to migrant workers by the Brihanmumbai Municipal Corporation (BMC) during the COVID-19 pandemic lockdown.
Chavan’s petition claimed that the case was based on “conjectures and surmises” and that there was no basis for the allegations against him. Besides, Bhadbhade argued that the arrest did not comply with the mandated legal procedures under the special Act, and no notice was issued against him, hence his fundamental rights were violated.
The accused in the case—two companies—allegedly secured contracts to supply khichdi at an inflated price of ₹33 per 100-gram packet with an additional GST amount, despite not meeting the eligibility criteria.
The alleged irregularities in the Khichdi contract caused the BMC to lose over Rs 6 crore, and Chavan was accused of using “political influence” to facilitate the contracts to 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, 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, and he then approached the HC for bail. On February 4, 2025, the HC granted him bail on a PR bond and surety of Rs 1 lakh.