Madhya Pradesh High Court Grants Bail to Former RTO Constable Saurabh Sharma in Money Laundering Case
The Madhya Pradesh High Court has granted bail to former Regional Transport Office (RTO) constable Saurabh Sharma in the high-profile money laundering case that has attracted widespread attention across the state. The order was passed by the Jabalpur Bench of the High Court after it concluded that the Enforcement Directorate (ED) had completed its investigation and filed the chargesheet, leaving no compelling reason for Sharma’s continued judicial custody.
Justice Ajay Kumar Nirankari allowed Sharma’s third bail application after hearing arguments from both the defence and the Enforcement Directorate. The court directed that Sharma be released on a personal bond of ₹10 lakh along with a surety of the same amount, subject to compliance with all conditions imposed by the court. The ruling came after the matter had earlier been reserved for orders.
Saurabh Sharma has remained in judicial custody since February 10, 2025, when he was arrested by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA). The ED’s case stems from allegations of disproportionate assets and the alleged laundering of illicit wealth accumulated during his tenure in the Madhya Pradesh Transport Department. Investigators have alleged that the financial transactions involved assets and funds running into nearly ₹100 crore.
The case drew national attention after multiple investigating agencies reportedly recovered large quantities of cash, gold and documents linked to the alleged financial network. The Enforcement Directorate initiated its money laundering investigation based on predicate offences registered by other agencies examining alleged corruption and disproportionate assets. The ED subsequently filed a prosecution complaint after completing its investigation.
During the bail hearing, Sharma’s counsel argued that the investigation had concluded, the chargesheet had already been filed, and therefore his continued incarceration was no longer necessary. The defence also pointed out that the trial is expected to take considerable time. The Enforcement Directorate opposed the plea, citing the seriousness of the allegations and the scale of the alleged financial irregularities. After considering both sides, the High Court ruled that further custody was not justified at this stage while making it clear that the criminal trial would continue.
This was Sharma’s third attempt to secure regular bail. His earlier applications before the High Court and lower courts had been rejected, and he had also failed to obtain relief from the Supreme Court. A separate request seeking temporary bail on humanitarian grounds for his wife’s medical treatment had likewise been declined earlier this year. The latest application succeeded primarily because the investigation had reached its conclusion and the prosecution had already filed its chargesheet.
The High Court’s order does not amount to a finding on the merits of the allegations. Grant of bail simply allows the accused to remain out of custody while the prosecution proceeds with the trial, subject to strict conditions. The Enforcement Directorate will continue to pursue the money laundering case before the competent court, where the evidence against Sharma will be examined during the course of the trial.
