Bombay HC Discharges CA in Bhujbal Money Laundering Case: “Absence of Due Diligence Not an Offence”

The Bombay High Court has discharged chartered accountant Shyam Radhakrishna Malpani, Maharashtra Minister and Senior NCP leader Chhagan Bhujbal’s auditor, from a money laundering charge under Section 3 of the PMLA, finding no evidence that he knowingly facilitated illicit transactions. 

The court observed that there was no evidence showing Malpani had knowledge of the alleged sham transactions or acted negligently.  Mere lack of due diligence or absence of knowledge is insufficient to establish criminal liability.

The court further noted that he was neither named in any of the offences nor found to be a beneficiary of the illicit funds.

The Court emphasised that liability under PMLA requires knowledge and intent, not just professional lapses, and closed the case against him.