The Supreme Court on Thursday granted bail to Chhattisgarh businessman Sunil Dammani, who was arrested by the Enforcement Directorate (ED) in August last year in connection with a money laundering case related to the Mahadev illegal gambling app.

The court clarified that the bail decision was made without delving into the merits of the allegations. 

A bench of Justices J B Pardiwala and Manoj Misra observed that Dammani has been in custody since August 23, 2023, and overturned the Chhattisgarh High Court's decision to deny him bail.

"Without saying anything on merits, we are of the view that the appellant may be released on bail subject to bail conditions.

"Appellant is ordered to be released on bail if not required in any other investigation, subject to the condition that he shall mark his presence every 15 days at the ED office in the concerned district. The appellant shall not leave the country without prior permission of the trial court," the bench said.

At the start of the hearing, senior advocate Vikas Pahwa, representing Sunil Dammani, informed the Supreme Court that his client had been in jail for 14 months. He pointed out that the principal accused in the case had not cooperated with the investigation, and the trial had not yet begun.

On behalf of the Enforcement Directorate (ED), advocate Zoheb Hossain argued against the bail, highlighting that Dammani is one of 45 accused in the case. He alleged that Dammani operated as a hawala agent, illegally transferring over ₹5,000 crore in crime proceeds abroad. Hossain also noted that the main conspirators remain absconding, with red corner notices issued against them.

Despite this, the Supreme Court noted that Dammani had been in jail since August 2023 and decided to grant bail without addressing the merits of the allegations. The court also considered that the ED had already filed a charge sheet in the case.

The court was hearing Dammani’s appeal against the Chhattisgarh High Court’s July 26 order, which had rejected his bail plea. Dammani, along with three others, had been arrested by the ED on August 23 last year for alleged involvement in the Mahadev app money laundering case. 

The ED's case originates from a 2022 FIR filed by the state police in Durg district against the illegal gambling app. In addition to Dammani, others arrested include his brother Anil Dammani, Chhattisgarh Police ASI Chandra Bhushan Verma, and Satish Chandrakar, all from Raipur. The ED alleges that the Dammani brothers, who own a jewellery shop and petrol pump, were involved in hawala transactions. ASI Verma is accused of accepting money from the accused to protect them from police action and possibly distributing funds to other police officials.

The ED also conducted searches at the properties of 10 individuals, including Vinod Verma, political advisor to former Chhattisgarh chief minister Bhupesh Baghel.