Jamsandekar was shot dead in March 2008 at his Asalpha residence in suburban Ghatkopar. Gawli was arrested on May 21, 2008 and has been in custody since then.
Special MCOCA court judge Prithviraj Chavan, while pronouncing the judgement here, also imposed a fine of Rs 17 lakhs on Gawli, failing which he will have to undergo an additional three-year imprisonment.
Ten others were also awarded life imprisonment in the case while accused Sunil Ghate was convicted only under Arms Act and has been sent to three years' rigorous imprisonment.
The court also sent Gawli to ten-year imprisonment each for being a member of the organised crime syndicate and extortion.
While pronouncing the sentence, judge Chavan said "Instead of death I am giving you life imprisonment."During arguments on sentencing in the Maharashtra Control of Organised Crime Act (MCOCA) Court, the once feared underworld don had told judge Chavan that there was no reason for him to kill the Sena corporator for a "paltry" amount of Rs 30 lakh.
One of the accused, Bala Surve, died during trial, while three accused were acquitted for lack of evidence.
On October 7, 2010, the court had framed charges against Gawli and other accused under MCOCA, sections 302 (Murder), 34 (common intention) and 120B (criminal conspiracy) of IPC, while Gawli and others had pleaded innocence.
According to police, the contract of killing Jamsandekar was allegedly given by accused Sahebrao Bhintade and Bala Surve, who were reportedly his (Jamsandekar's) rivals in construction business and the local politics.
The crime branch had said that the other reason why Jamsandekar was executed was that Bintade and Surve were eyeing a plot at Saki Naka in suburban Mumbai and Jamsandekar reportedly "refused to cooperate".
According to prosecution, Jamsandekar was murdered at the behest of Gawli, who had, along with the co-accused, conspired to execute him.
The chargesheet said that a sum of Rs 30 lakh was paid to the Gawli gang for the job. The trial had commenced from October 2010.