New Delhi, 17 Sept

The Supreme Court on Wednesday cancelled the bail granted to gangster Chhota Rajan in the 2001 murder case of hotelier Jaya Shetty in Mumbai.

A bench of Justices Vikram Nath and Sandeep Mehta allowed the CBI's appeal challenging a 23 October last year order of the Bombay High Court, which suspended the life sentence of Rajan and granted him bail in the case. The apex court observed that Rajan remained absconding for 27 years and was convicted in four cases.

"Why suspension of sentence to such a man," the bench said. Rajan's counsel argued it was a case of no evidence. He said that out of the 71 cases, the CBI did not find any material against Rajan in 47 cases, and the probe agency closed them. Rajan's counsel said he was convicted in a separate murder case and was awarded a life sentence.

Additional Solicitor General SV Raju, appearing for the CBI, said the high court had suspended the life sentence awarded to Rajan in the case. "We will cancel the bail in this," the bench said. When Rajan's counsel argued it was a case of "no evidence", the bench observed, "your name itself is big enough".

After his counsel said Rajan was acquitted in several cases, the bench said the acquittals were because witnesses did not come forward. The bench allowed the CBI's appeal challenging the high court order and cancelled his bail bond. It noted Rajan was already in judicial custody and was serving a sentence in another case.

In May 2024, a special court convicted Rajan in the hotelier's murder case and sentenced him to life imprisonment. Rajan filed an appeal in the high court against the conviction. He also sought that the sentence be suspended and that he be granted bail in the interim.

Shetty, who owned the Golden Crown hotel at Gamdevi in central Mumbai, was shot dead by two alleged members of Rajan's gang on the hotel's first floor on 4 May, 2001. A probe suggested that Shetty had received extortion calls from Hemant Pujari, a member of the Chhota Rajan gang, and was killed because he failed to pay the money. 

Rajan is already serving a life term for the murder of veteran crime reporter J Dey.