2022 (4) TMI 1428 - HC - Money Laundering

Permission to visit abroad for medical treatment with certain conditions allowed - HELD THAT - It is stated he has already purchased huge properties in USA and there is every possibility he may not return to India to join further investigation and hence, he should not be allowed to visit abroad on the pretext of treatment of prostate cancer. Issue notice to respondent through all modes returnable on 14.07.2022 and in the meanwhile, the operation of the impugned order dated 08.04.2022 passed by the learned Trial Court shall remain in abeyance.

Summary

Issues:
1. Challenge to the order permitting the respondent to travel abroad for medical treatment amidst ongoing investigation under the Prevention of Money Laundering Act (PMLA).

Analysis:
The petitioner challenged the order allowing the respondent to travel abroad for medical treatment while facing investigation under the PMLA. The petitioner contended that the respondent, as the Chairman Emeritus of Alchemist Group, controlled funds diverted for personal gain. Evidence suggested the respondent's association with various entities and assets acquired from proceeds of crime. Allegations indicated the respondent and family members benefited from laundered funds through accused companies. The petitioner argued that despite pending investigation and risk of evasion, the Trial Court mechanically granted travel permission. Concerns were raised about the respondent's potential escape, given substantial property holdings abroad and the magnitude of the alleged fraud amounting to approximately Rs.1900 Crores.

The petitioner highlighted the respondent's brother's anticipatory bail application, alleging threats made by the respondent. Directors of companies also expressed fear of non-cooperation due to threats. The petitioner emphasized the risk of the respondent not returning to India for further investigation, citing extensive property ownership in the USA. The petitioner urged the court to prevent the respondent from traveling abroad under the guise of prostate cancer treatment. Consequently, the court issued notice to the respondent for a future hearing and suspended the Trial Court's order permitting travel until the next hearing date.