The Patna High Court has granted bail in a high-profile money laundering case connected to alleged illegal sand mining operations in Bihar, where the Enforcement Directorate (ED) claimed that proceeds of crime worth crores were concealed through property acquisitions, school constructions, and resort renovations.
The bench of Justice Prabhat Kumar Singh noted that while allegations of large-scale sand mining fraud are serious, there was no documentary evidence linking the accused directly to the proceeds of crime.
The ED alleged that M/s Broadson Commodities Pvt. Ltd. and its directors were involved in illegal sand mining and sales without departmental challans, causing an estimated loss of ₹161 crore to the state exchequer. Investigators claimed that the crime proceeds were routed into high-value assets, including the Mastiff Grand Manali Resort and MSD World School, Ghaziabad, and through financial structures such as Ganinath Ventures LLP.
According to the ED, over ₹11.9 crore in cash was transferred via hawala for resort renovation, while ₹5.36 crore was spent on school construction from unaccounted funds. WhatsApp chats and bank deposits linked to over 140 accounts were also cited as evidence of layering and concealment of illicit income.
The defence argued that out of 20 predicate FIRs forming the basis of the case, most have been quashed or closed, with no charge-sheets filed. The alleged investments were made from legitimate businesses and voluntarily disclosed to the Income Tax Department, which assessed them as lawful income. No direct nexus between the accused and the sand mining company was proven; reliance on co-accused statements was insufficient.
The Court stressed that prolonged incarceration (over 15 months as an undertrial) without charges being framed violates the right to personal liberty under Article 21. The bulky chargesheet of over 4,000 pages and 56 witnesses means the trial will take considerable time. Most predicate offences no longer survive, weakening the foundation of the ED’s case.
The bail was granted on a bond of ₹10 lakh with strict conditions, including surrender of passport, restriction on travel, prohibition on contacting witnesses, and mandatory cooperation with trial proceedings.
Case Details
Case Title: Kanhaiya Prasad Versus UOI
Case No.: Arising Out of PS. Case No.-14 Year-2023 Thana- E.C.I.R
Date: 22-08-2025
Counsel For Petitioner: Mrigank Mauli (Sr.Adv.)
Counsel For Respondent: Tuhin Shankar (Advocate)
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