The Supreme Court of India on Tuesday cancelled the bail granted by the Bombay High Court to gangster Rajendra Sadashiv Nikalje, widely known as Chhota Rajan, in the 2001 murder of hotelier Jaya Shetty.
A bench comprising Justices Vikram Nath and Sandeep Mehta passed the order while hearing the Central Bureau of Investigation’s (CBI) appeal. The Court expressed strong disapproval of the High Court’s order suspending Rajan’s sentence despite his history of multiple convictions and prolonged abscondence.
Justice Mehta pointedly remarked:
“Four convictions and abscondence of 27 years… why suspension of sentence to such a man?”
Appearing for the CBI, Additional Solicitor General SV Raju stressed Rajan’s criminal record, noting that he is a convict in four different cases, including another murder case, and remained a fugitive for nearly three decades before his arrest.
On the other side, Rajan’s counsel argued that the present conviction was based on “no evidence” and highlighted that in 47 out of 71 cases, the CBI had found no material and closed proceedings. The lawyer acknowledged, however, that this was Rajan’s second conviction in a murder case.
After considering the submissions, the Court was not persuaded to allow Rajan the benefit of suspended sentence or bail, and therefore cancelled the relief earlier granted by the Bombay High Court.
According to the prosecution, Jaya Shetty, the owner of Golden Crown Hotel in South Mumbai, had been receiving extortion threats from Rajan’s gang. Initially, Shetty was provided police protection, but it was withdrawn two months before his death.
On May 4, 2001, Shetty was shot dead outside his office by two alleged members of Rajan’s gang after he purportedly refused to pay an extortion demand of ₹50,000.
In May 2024, a Special MCOCA Court in Mumbai convicted Chhota Rajan and sentenced him to life imprisonment. He was found guilty of murder, criminal conspiracy, and offences under the Maharashtra Control of Organised Crime Act (MCOCA).
The sentences imposed were:
1. Sections 302 & 120-B IPC (Murder and Criminal Conspiracy): Life imprisonment + fine of ₹1,00,000 (default: one year simple imprisonment).
2. Sections 3(1)(i), 3(2), 3(4) of MCOCA: Life imprisonment on each count + fine of ₹5,00,000 each (default: one year simple imprisonment per count).
All four life sentences were to run concurrently, and Rajan was directed to pay a total fine of ₹16,00,000.
The Court, however, acquitted him of charges under the Arms Act (Sections 3, 25, and 27).
This conviction marked Rajan’s second life sentence, as he was already serving life imprisonment for the 2011 murder of journalist Jyotirmoy Dey.
Chhota Rajan’s Background
• Global Fugitive: Rajan had been absconding for 27 years, operating from abroad, and was finally arrested in Bali, Indonesia, in October 2015. He was deported to India the same year.
• CBI Prosecutions: After his arrest, 71 criminal cases pending against him in Maharashtra were transferred to the CBI for trial.
• Criminal Profile: Once an ally of Dawood Ibrahim, Rajan broke away in the 1990s and ran his own organized crime syndicate, accused of extortion, contract killings, and smuggling.
In its ruling in Central Bureau of Investigation, New Delhi v. Rajendra Sadashiv Nikalje @ Chhota Rajan @ Nana Sheth @ Sir and Anr., Diary No. 5707-2025, the Supreme Court:
• Cancelled the suspension of sentence and bail granted by the Bombay High Court.
• Criticized the grant of relief in light of Rajan’s criminal antecedents and long abscondence.
• Restored CBI’s authority to continue enforcement of Rajan’s life sentence.
With this, Chhota Rajan will remain in prison, serving concurrent life sentences for multiple cases, including the Shetty murder and the J. Dey murder.
