Supreme Court Expresses Reservations Over ED Bail to Jaffer Sadiq, Declines to Interfere

Reservations and a Year-Long Gap

The Supreme Court on Wednesday expressed clear reservations about the Madras High Court's decision to grant bail to former DMK functionary Jaffer Sadiq and his brother Mohamed Saleem in a money laundering case, yet declined to overturn the order simply because it had been passed more than a year ago. A bench of Justice M.M. Sundresh and Justice Augustine George Masih dismissed the Enforcement Directorate’s special leave petitions, while emphatically ruling that the High Court's decision “shall not be treated as a precedent.”

The Money Laundering Web

The case stems from three predicate offences registered by the Narcotics Control Bureau and Customs Departments in New Delhi, Mumbai, and Chennai, involving alleged illegal export of narcotics—pseudoephedrine and ketamine—valued in large quantities. The ED claimed that Sadiq and Saleem handled proceeds of crime by depositing substantial cash into their bank accounts, which their income tax returns did not justify. Sadiq was arrested in June 2024, and Saleem surrendered in August 2024.

The Madras High Court had granted bail in April 2025 after finding that the accused’s continued incarceration would violate their right to life and personal liberty under Article 21 of the Constitution. The High Court noted that all properties allegedly acquired from proceeds of crime had been attached, the investigation was complete, and the trial was unlikely to conclude soon.

A Delicate Balancing Act

Arguing for the ED, Additional Solicitor General Anil Kaushik pressed the court to interfere, pointing to the gravity of the offences. Senior counsel Gopal Sankaranarayanan, appearing for the respondents, defended the High Court’s reasoning.

The Supreme Court, while not agreeing fully with the High Court’s order, chose to maintain the status quo. “On a prima facie view, we have our own reservation to the impugned order passed. However, the order having been passed more than a year back, we are not inclined to interfere with the same,” the bench observed.

Key Observations from the Bench

“On a prima facie view, we have our own reservation to the impugned order passed. However, the order having been passed more than a year back, we are not inclined to interfere with the same. We hold that the decision shall not be treated as a precedent.”

The court’s directive that the order not be used as a precedent underscores its discomfort with the legal reasoning, while the year-long delay prevented a reversal—a pragmatic acknowledgment that undoing a bail after such a period would cause disruption.

Final Verdict and Implications

The Supreme Court dismissed the special leave petitions, effectively allowing the bail to stand. The practical effect is that Sadiq and Saleem remain on bail, but the ED’s concerns have been noted. The ruling sends a signal that even if a lower court’s order is questionable, the Supreme Court may not intervene if the order has been in effect for a significant time, provided it does not become a binding precedent. The case now proceeds to trial before the Principal Sessions Judge in Chennai, where the ED will have to prove its allegations on the merits.