Gujarat High Court Denies Bail to IAS Officer in Rs 3.12 Crore Money Laundering Case

The Gujarat High Court has refused regular bail to suspended IAS officer Rajendrakumar Mahendrabhai Patel in a money laundering case linked to an alleged land conversion bribery racket. Justice Hasmukh D Suthar, hearing the bail application under the Prevention of Money Laundering Act (PMLA), held that the economic health of the nation must be protected over personal liberty.

The case stems from an alleged bribery network operating within the Surendranagar collectorate for clearing change of land use (CLU) applications. According to the Enforcement Directorate (ED), officials had fixed rates for converting agricultural land to non-agricultural use, with Patel, then district collector, receiving a 50 per cent share of the illegal gratification. Based on 501 applications processed during his tenure, the ED quantified his alleged proceeds of crime at Rs 3,12,62,230.

Under Section 45 of the PMLA, bail can only be granted if the court has reasonable grounds to believe the accused is not guilty and is not likely to commit any offence while on bail. The court found that these conditions were not satisfied.

The alleged racket came to light on December 23, 2025, when the ED recovered Rs 67.50 lakh in cash and alleged 'hisaab sheets' from the residence of deputy mamlatdar Chandrasinh Mori. The agency claimed these records revealed a structured mechanism for collecting bribes, including fixed rates per square metre for different categories of land conversion.

The court noted the ED's submission of digital records, handwritten calculations, and witness statements linking Patel to the offence. Patel argued that the money laundering proceedings could not continue due to lack of a chargesheet in the scheduled offence, but the court rejected this contention.