Madras High Court Grants Bail to Jaffer Sadiq, Mohamed Saleem in ED Money Laundering Case Over International Drug Proceeds [Read Order]

Chennai: The Madras High Court has granted bail to Jaffer Sadiq and Mohamed Saleem, who were arrested by the Enforcement Directorate in connection with a money laundering case, emphasizing that prolonged pre-trial detention violates constitutional rights.
Justice Sunder Mohan delivered the order on April 21, 2025, after considering the petitions filed by both accused, who had been in custody since mid-2024.

The court addressed the matter involving two criminal original petitions filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita (BNSS). The court noted, “Both the accused were involved in the process connected with the proceeds of crime, including concealment, possession, acquisition or use, and projecting or claiming it as untainted property.”

The prosecution argued that the accused had substantial unexplained cash deposits in their accounts and had purchased properties using proceeds from drug trafficking operations that extended beyond India to countries including Malaysia, New Zealand, and Australia.
The petitioners’ advocates submitted that the accused had already been granted bail in the predicate offences, the investigation had been completed, and the properties allegedly acquired through proceeds of crime had been attached.

Addressing specific concerns regarding long incarceration, the court observed, “Prolonged pre-trial detention is anathema to the Constitution, besides being in violation of basic human rights.”

While referring to various precedents, the court stated, “The observations of the Hon’ble Supreme Court remind the High Courts and the trial courts of certain fundamental principles: that bail is the rule and jail is an exception; that bail is not to be withheld as a punishment.”
After considering various factors, the court held that further incarceration of the petitioners pending trial would violate their rights under Article 21 of the Constitution of India. Accordingly, the court expressed its inclination to grant bail to the petitioners, subject to conditions to ensure their presence during trial.

In a specific directive, the court ordered: “Accordingly, the petitioners are ordered to be released on bail on their executing a bond for a sum of Rs. 5,00,000/- (Rupees Five Lakhs only) each with two sureties, each for a like sum.”
The court also imposed conditions including the surrender of passports, regular appearance before the trial court, and a prohibition on contacting witnesses or tampering with evidence.

Senior Counsels Mr. Abudu Kumar Rajarathinam and Mr. Sri Charan Rangarajan appeared for the petitioners, while Mr. A.R.L. Sundaresan, Additional Solicitor General of India, assisted by Mr. N. Ramesh, Special Public Prosecutor, appeared for the Enforcement Directorate.

Case Title: Jaffer Sadiq v. The Assistant Director, Directorate of Enforcement

[Read Order]