Dapoli resort case: Kadam acted as 'front-man', sought to legalise illicit work, says PMLA court while denying bail to Anil Parab's aide

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A special court in Mumbai, while denying bail to Shiv Sena (UBT) leader Anil Parab's aide Sadanand Kadam said that he was Parab's "front man" and involved in pressurising the local authorities in legalising illegal work pertaining to the Dapoli resort. He was seeking to legalise work which was "basically illegal", the court was quoted as saying in a PTI report.

A special judge for cases under the Prevent of Money Laundering Act (PMLA) MG Deshpande rejected Kadam's bail plea on Tuesday. The detailed order became available on Wednesday, October 11.

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The order of the court read, "He (Kadam) prima-facie appears to have acted as a front-man of Anil Parab and dealt with everything i.e. liaisoning work, pressurizing the revenue and other authorities for legalizing the work which is basically illegal."

The court, according to the report, noted that since he acted as a front-man, thence his role was prima facie covered under Section 3 of the PMLA which stated that any involvement with proceeds of crime and projecting it as untainted property amounted to money laundering.

According to the order, based on Kadam's involvement, he is one of the main persons in the process of money laundering. It further said that going by the prosecution's complaint, it is clear that the "entire revenue authority--office of the SDO Dapoli and Gram Panchayat--were under pressure of Anil Parab and Kadam". Moreover, it noted that the officials had no alternative except surrendering and bowing before them. The court said, "Hence, permission was granted for non-agricultural use of the land in question."

The court, as stated in the report, said Kadam had failed to show reasonable grounds for believing that he is not guilty of money laundering.

Dapoli resort case

The Dapoli resort case is related to the alleged violation of Coastal Regulation Zone provisions in the construction of Sai Resort at coastal Dapoli in Ratnagiri district. The Income Tax department first attached the resort claiming Anil Parab, a former Maharashtra minister, had illicitly transferred its ownership to Kadam.

Additionally, the Enforcement Directorate began a separate probe claiming illegal financial transactions at the resort. ED had alleged that Parab had illicitly sought permission from the revenue department for the construction of a twin bungalow on land falling under CRZ-III which is no development zone and illicitly constructed Sai Resort NX. The federal agency alleged Parab built the resort by investing his "unaccounted money" and Kadam played a crucial role in the incidents that transpired, stated the PTI report.

Sadanand Kadam was arrested in March this year and is presently in judicial custody.