2020 (10) TMI 1262 - HC - Money Laundering

Seeking grant of Bail - Money Laundering - proceeds of crime - bail was sought on the medical grounds and also on the ground of his availability for the purpose of trial - HELD THAT - The Chief Medical Officer of the Central Prison in her letter dated 18.2.2020 addressed to the Chief Superintendent, Central Prison, Bengaluru, has noted about the actual ailments of the petitioner. The sessions court has observed while rejecting the bail application on 18.8.2020 that a six months old medical report cannot be acted upon. Whatever may be the observations of the Sessions Court, the report clearly says that the petitioner has been a diabetic since the year 2013, suffering from hyper tension since the year 2010 and has cardiac problem and has also been suffering from degenerative spondylosis since October 2018 - It is pertinent to note that the Chief Medical Officer has clearly made an observation about the chronic disease conditions of the petitioner. Therefore, certainly this aspect can be considered for granting bail. Whether there is any chance of his fleeing away from India and thereby hampering the trial? - HELD THAT - The answer should be definitely not because the petitioner has surrendered his passport. Investigation is over, it is not the case of the prosecution that petitioner is required for further investigation. Sri Madhukar Deshpande argued that accused No.9 is to be arrested and if the petitioner comes out of jail he may deviate the proceeds of crime. This apprehension can be obviated by subjecting the petitioner to conditions. Petitioner shall be released on bail on obtaining from him a bond for ₹ 5,00,000/- and two sureties for the likesum to the satisfaction of the trial court. The trial court shall ascertain the whereabouts of the sureties before accepting the surety bonds - Bail granted subject to conditions imposed - petition allowed.

Summary

Issues:
1. Bail application under section 439 Cr.P.C. by the first accused facing trial for financial crimes.
2. Allegations of collecting funds fraudulently, discrepancies in financial statements, and offenses under various sections of the Indian Penal Code and other Acts.
3. Petitioner's health conditions and arguments for bail on medical grounds.
4. Respondent's objections regarding the seriousness of the offenses and potential impact on investors if bail is granted.
5. Legal arguments and precedents cited by both parties regarding bail in financial crime cases and health grounds.

Issue 1:
The petitioner, the Managing Director of a company, filed a bail application under section 439 Cr.P.C. as the first accused in a trial related to financial crimes.

Issue 2:
The petitioner was accused of collecting funds fraudulently, with discrepancies in financial statements amounting to over ?1000 crore. The Enforcement Directorate took over the investigation, implicating the petitioner and others under various sections of the Indian Penal Code and other Acts.

Issue 3:
The petitioner argued for bail on medical grounds due to severe health conditions, including diabetes, hypertension, heart ailment, and spine degenerative spondylosis. Citing precedents, the petitioner emphasized the need for medical treatment outside jail, willingness to cooperate, and regular trial attendance.

Issue 4:
The respondent objected to bail, highlighting the seriousness of the offenses, the amount collected fraudulently, and the risk of property alienation affecting investors. The respondent argued against bail based on the evidence collected and the potential impact on ongoing investigations.

Issue 5:
Legal arguments and precedents were presented by both parties, with the petitioner citing cases emphasizing health conditions as a reason for bail. The respondent countered with cases suggesting that bail should be denied in cases involving large sums of money laundering. The court considered these arguments and precedents before making a decision.

The court analyzed the petitioner's health conditions, noting the stable report by the Chief Medical Officer but emphasizing the chronic nature of the ailments requiring constant monitoring. While the trial court rejected bail based on a six-month-old medical report, the court found merit in considering the petitioner's health conditions for bail. The court also addressed the risk of the petitioner fleeing the country, noting the surrender of the passport and the completion of the investigation. Balancing these factors, the court granted bail with stringent conditions, including a bond amount, sureties, regular trial attendance, evidence non-tampering, property non-alienation, and reporting requirements.