Money laundering case: Kerala HC junks cashew trader’s bail plea

Kochi: High court on Monday dismissed the bail petition filed by Aneesh Babu, a Kollam-based cashew businessman, in a case under the Prevention of Money Laundering Act (PMLA), observing that a prima facie case of money laundering had been made out against him.Justice Kauser Edappagath, while dismissing the petition, further observed that there were prima facie materials on record to show that Babu was in possession of the proceeds of crime. The investigation conducted by Enforcement Directorate (ED) is still underway and is at a crucial stage. "Undoubtedly, ED may require further time to collect all the materials, particularly regarding the alleged nexus of the applicant with the crimes," HC noted.
Babu was arrested by ED on Jan 14, 2026, in connection with a PMLA case registered following an FIR lodged by police based on a complaint that he had allegedly accepted advance payments from local cashew traders after promising to supply imported cashew nuts at rates lower than prevailing international prices. However, he allegedly failed to honour the agreement, thereby cheating the traders. Meanwhile, the vigilance and anti-corruption bureau had registered a bribery case against certain ED officials based on a complaint filed by Babu, alleging that they had demanded Rs 2 crore from him to stall the ED proceedings in the alleged PMLA case.During hearing of Babu's bail petition, ED officials submitted that he had cheated the de facto complainants under the guise of supplying cheap cashews and by offering job opportunities, and had received a total sum of Rs 25.52 crore. ED vehemently opposed the bail plea, citing that under Section 45 of the Prevention of Money Laundering Act, bail can be granted only if the court is satisfied that there are reasonable grounds for believing that the accused is not guilty of the offence and that he is not likely to commit any offence while on bail. Upon perusing the materials, HC held that there were no reasonable grounds for believing that Babu was not guilty of the offences alleged. Accordingly, it dismissed his plea.