Supreme Court Cancels Bail of Chhota Rajan in 2001 Jaya Shetty Murder Case

New Delhi, Sept 2025 : The Supreme Court on Wednesday cancelled the bail granted to mafia don Rajendra S. Nikalje, better known as Chhota Rajan, in the 2001 high-profile murder of Mumbai hotelier Jaya Shetty.

A Bench comprising Justices Vikram Nath and Sandeep Mehta allowed the special leave petition (SLP) filed by the Central Bureau of Investigation (CBI), which had challenged the Bombay High Court’s decision to suspend Rajan’s life sentence and grant him bail.

CBI’s Arguments

During the proceedings, Additional Solicitor General (ASG) S.V. Raju, appearing for the CBI, argued that Rajan had already been convicted in four other cases and had remained a fugitive for nearly 27 years before his arrest. The Court took note of these submissions while overturning the High Court’s order.

Rajan was convicted by a Special MCOCA Court in the Shetty murder case and sentenced to life imprisonment, his second life sentence within a decade. Following his conviction, Rajan appealed to the Bombay High Court.

In October 2023, a Division Bench of Justices Revati Mohite-Dere and Prithviraj K. Chavan suspended his sentence pending appeal and ordered his release on bail. However, Rajan could not be freed since he was already serving a life term in Delhi’s Tihar Central Jail for the 2011 murder of crime journalist Jyotirmoy Dey in Mumbai’s Powai.

The Shetty Murder Case

The killing of Jaya Shetty, owner of the Golden Crown Hotel in south Mumbai, sent shockwaves through the city’s hospitality and political circles. On May 4, 2001, two gunmen shot Shetty dead, allegedly on Rajan’s orders. The underworld don was then locked in a bitter rivalry with fugitive gangster Dawood Ibrahim Kaskar, and the murder was seen as part of the ongoing gang wars.

The case was among the 71 major offences included in the dossier that India handed over to Indonesian authorities after Rajan’s arrest in Bali in 2015. He was subsequently deported to India to face multiple trials.

After a lengthy trial, Special Judge A. M. Patil of the MCOCA court found Rajan guilty, along with co-accused Rahul Pansare, Ajay Mohite, and Pramod Dhonde, sentencing them to life imprisonment.

Security Lapse

Shetty had earlier reported extortion threats and was provided with police protection. However, this security cover was withdrawn just months before his assassination, raising serious questions about lapses in ensuring his safety.

With the Supreme Court’s ruling, Rajan will remain behind bars, continuing to serve his multiple life sentences as trials in other cases against him progress.