Medical admission fraud: No bail for six accused of laundering

MUMBAI: Observing that the predicate offence relates to cheating of various innocent students and their parents, many of whom have lost their hard-earned life savings, a special PMLA court has rejected the bail and discharge pleas of six accused in a money laundering case linked to MBBS admission fraud.
"The applications are premature, if entertained and allowed will cause horrific consequences," special judge MG Deshpande said.
The accused had sought release from jail and discharge on the grounds that since the predicate offence had been withdrawn during a Lok Adalat held earlier this month, the money laundering case could not proceed.
They cited a recent Supreme Court ruling that held when there is no predicate or scheduled offence, the PMLA case cannot continue. The predicate or original offence is one based on which, the Enforcement Directorate registers its money laundering cases.
However, special judge MG Deshpande said, "If the application is allowed in a hasty manner, as proposed by the accused...it will cause horrific consequences of disposal of special case relating to money laundering. At the cost of repetition, it has to be noted that accused are not prevented from filing any application as such, but at the same time the court is under obligation to wait till the period of limitation for filing appeal against the acquittal in LokAdalat.."
Among those who moved the plea were Mahadev Ramchandra Deshmukh (64). In a chargesheet submitted in July this year, the ED had said that Deshmukh, a former president of a Satara-based medical college, in collusion with other accused cheated around "350 gullible students" and collected Rs 65.70 core. The admission was to be given in Institute of Medical Science and Research (IMSR) run by Shri Chhatrapati Shivaji Education Society, Satara, But neither admission nor refund was given, the ED said.
In Friday's order, the special judge said that it had to be noted that, though the FIR was lodged by one person, there was list of 41 witnesses mentioned in the chargesheet who are basically the affected students or their parents, whose kids could not get admissions and had also lost huge money. "Admittedly none of the 41 witnesses was present at the time of withdrawal or compounding of the complaint in Lok Adalat dated November 12," the judge said. The judge also said that the period to challenge the acquittal has not lapsed till date. "Any victim can prefer appeal against acquittal and the Court has to wait till the period of appeal ends. Judicial discipline warrants the same," the judge said.
In a separate order the special judge had allowed Arun Gore, the present director of Shree Chhatrapati Shivaji Education Society to intervene and oppose the pleas. Gore told the court the withdrawal or compounding of the case in the Lok Adalat on November 12, was fraudulent as many students who had lost their money on account of MBBS admissions have got affected by the withdrawal.