Sachin Balasaheb Sawant, a high-ranking officer of the Indian Revenue Service (IRS), is at the center of a significant money laundering and corruption scandal that has garnered widespread attention. Sawant, who previously served as Additional Commissioner (Appeals) in the Central Goods and Services Tax (CGST) and Customs Excise (CX) Zone, Lucknow, was arrested by the Enforcement Directorate (ED) in June 2023 for amassing assets worth ₹2.45 crore, disproportionate to his known sources of income. After spending over 15 months in jail, Sawant has been granted bail by the Bombay High Court, although the serious allegations against him remain under investigation.
The Allegations and Arrest
Sawant’s troubles began in June 2022 when the Anti-Corruption Bureau (ACB), Mumbai, registered an FIR against him under the Prevention of Corruption Act (PC Act). The FIR was based on accusations that between 2011 and 2020, Sawant had illegally amassed wealth far beyond his known sources of income, amounting to 204% more than what he could legitimately account for. The allegations came after anonymous information was received by the Central Bureau of Investigation (CBI), prompting a thorough investigation by the ACB.
The charges against Sawant include Sections 13(2) read with Section 13(1)(e) of the PC Act, which pertain to public servants being in possession of assets disproportionate to their income. Additionally, Sawant faces charges under Section 109 of the Indian Penal Code (IPC), which deals with abetment of crime.
The Role of the Enforcement Directorate
On December 13, 2022, the ED registered an Enforcement Case Information Report (ECIR) against Sawant, using the FIR filed by the ACB as the predicate offense. The ED’s investigation focused on the proceeds of crime under the Prevention of Money Laundering Act (PMLA), treating the alleged disproportionate assets as the result of criminal activity. Sawant’s assets, which included real estate properties, luxury vehicles, and large sums of money routed through family members’ bank accounts, were flagged by the ED as “proceeds of crime.”
The ED’s case against Sawant accused him of money laundering under Sections 3 and 4 of the PMLA. The agency alleged that Sawant had used various methods, including placing, layering, and integrating ill-gotten funds, to obscure the origin of his wealth. Investigators pointed to the purchase of properties, including a flat in Sanpada, Navi Mumbai, and another in Adarsh Co-operative Society, Dadar, Mumbai. Additionally, a luxury vehicle, a Ford Endeavour, was reportedly bought using illicit funds. Sawant is also alleged to have used his father’s and brother’s bank accounts to hide large cash deposits, despite the fact that both had limited income sources – his father being a retired Assistant Sub-Inspector from the Mumbai Police and his brother working as a lower-ranked police officer in Maharashtra’s Protection Unit.
Court Proceedings and Defense
During the bail hearings, Sawant’s defense, led by senior counsel, contested the ED’s findings. The defense argued that the original FIR, which served as the basis for the ED’s case, was fundamentally flawed. The FIR lacked the signature of the complainant, and the section identifying the informant was left blank, which, according to the defense, invalidated the entire premise of the case. Moreover, Sawant’s counsel emphasized that the CBI had not yet filed a chargesheet, indicating that the investigation into the predicate offense (corruption) was still ongoing.
Sawant’s legal team further argued that the ED’s arrest was premature and based on insufficient evidence. They pointed out that the ED’s primary reliance on the FIR meant that no conclusive findings had yet been made about Sawant’s alleged disproportionate assets. The defense claimed that the entire process had been rushed, and Sawant had not been given a fair opportunity to account for the assets in question.
ED’s Counterarguments
The ED, however, maintained that its investigation had uncovered substantial evidence of Sawant’s involvement in money laundering. According to the ED, Sawant had routed large sums of money through his family members’ accounts and used them to purchase expensive properties and assets that were clearly beyond their means. The agency cited statements from Sawant’s family members, including his father and brother, as well as from Sawant’s driver and an associate, which revealed that significant cash transactions had taken place. The ED further argued that these funds were used to acquire assets and that Sawant had failed to provide any satisfactory explanation for their origin.
Court’s Decision
Despite the gravity of the charges, the Bombay High Court granted bail to Sawant on October 9, 2024, after he had spent more than 15 months in judicial custody. The court observed that the trial had not yet commenced and that the prolonged pre-trial detention was unjust. Justice Manish Pitale, who presided over the case, noted that the investigation into the predicate offense by the CBI was still incomplete, and no chargesheet had been filed, making it unclear whether all the assets attributed to Sawant were truly proceeds of crime.
The court ruled that Sawant should be released on a personal bond of ₹50,000 and imposed several conditions, including regular reporting to the ED office and full cooperation with the ongoing investigation. Additionally, Sawant was prohibited from tampering with evidence or influencing witnesses in any way.
A Case Far from Over
While Sachin Balasaheb Sawant may have secured temporary relief through bail, the serious charges of money laundering and corruption against him remain unresolved. The ED continues its investigation, and the eventual filing of a chargesheet by the CBI could bring further clarity to the case. For now, Sawant’s name is marred by the allegations of financial misconduct, and the public scrutiny of his actions as a senior IRS officer continues.
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