Institute of Legal and Management Studies

The Supreme Court today cancelled the bail granted by Bombay High Court to gangster Rajendra Sadashiv Nikalje, also known as Chhota Rajan, who was sentenced to life imprisonment in the 2001 murder case of hotelier Jaya Shetty.

A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after hearing Additional Solicitor General SV Raju (for CBI), noting that Chhota Rajan stands convicted in 4 other cases and remained absconding for 27 years. "4 convictions and abscondence of 27 years...why suspension of sentence to such a man?" remarked Justice Mehta.

Counsel who appeared for Chhota Rajan argued that it was a case of no-evidence and in 47 out of 71 cases, CBI did not find any material against him and closed the cases. On a specific query, the counsel acknowledged that the present conviction was Chhota Rajan's second conviction in a murder case. Ultimately, the Court was swayed to cancel Chhota Rajan's bail.

As per the prosecution case, victim Jaya Shetty, owner of the Golden Crown hotel in South Mumbai, faced extortion threats from Rajan's gang. He had police protection, which was withdrawn two months before his murder. Shetty was shot dead on May 4, 2001, outside his office by two alleged gang members, after Shetty purportedly refused to pay the demanded amount of Rs. 50,000.

In May, 2024, a Special MCOCA court in Mumbai sentenced Chhota Rajan to life imprisonment. He was found guilty of multiple charges:

1. Under Sections 302 (murder) and 120-B (criminal conspiracy) of the IPC, Rajan was sentenced to life imprisonment and fined Rs. 1,00,000. Failure to pay the fine will result in an additional one-year simple imprisonment.

2. Under Sections 3(1)(i), 3(2), and 3(4) of the MCOCA, Rajan received life sentences with fines of Rs. 5,00,000 each. Defaulting on these fines will also lead to an extra year of simple imprisonment for each count.

All four life sentences were to run concurrently, and the court imposed a total fine of Rs. 16,00,000 on Chhota Rajan. He was acquitted of charges under Sections 3, 25, and 27 of the Arms Act. This life sentence was Rajan's second; he was already serving time for the 2011 murder of journalist Jyotirmoy Dey.

Chhota Rajan was arrested in Bali in October 2015 and deported to India. He faced charges in 71 cases in Maharashtra, which were transferred to CBI.

Case Title: CENTRAL BUREAU OF INVESTIGATION, NEW DELHI Versus RAJENDRA SADASHIV NIKALJE @ CHHOTA RAJAN @ NANA SHETH @ SIR AND ANR., Diary No. 5707-2025