2022 (3) TMI 1436 - HC - Money Laundering

Seeking grant of anticipatory bail - Money Laundering - siphoning of the funds - it is alleged that the bank accounts were misutilized in connivance with the Bank Officials in as much as huge amount of cash was deposited and transferred to other accounts without their knowledge and consent - HELD THAT - The applications and implications of Section 45 of the Act needs to be considered while granting anticipatory bail and the privilege of anticipatory bail may be given only if the High Court is of the view that accused has not committed any offence under the PML Act. Whereas in the instant case there are sufficient materials to prove the complicity of the petitioner. Charge against accused persons has not been proved by Special (PMLA) Court Patna due to non- appearance of the accused persons of this case including the petitioner - The offence of money laundering damages the economic and financial system of the country and it can put the economy on hold or can derail it. It is more serious than the murder. The money laundering is not only used for the drug trading but also for terrorist activities and such crime affect the integrity and sovereignty of the country. It reveals that the bank accounts in the name of the complainant and others were misused in connivance with the bank officials of G.B. Road Gaya inasmuch as huge amount of cash was deposited and transferred to different other accounts without knowledge and consent of the account holders and thereby making such deposits/transfers illegal and unlawful in violation of the rule regulation and law as well as Section 4 of Money Laundering Act. Money is being siphoned off immediately from the account to conceal its origin and to project it as untainted against this petitioner- accused along with others. The petitioner cannot be enlarged on anticipatory bail - application dismissed.

Summary

Issues Involved:
1. Allegations of money laundering under the Prevention of Money Laundering Act (PMLA).
2. Misuse of bank accounts and connivance with bank officials.
3. Petitioner's involvement and defense.
4. Application of Section 45 of the PMLA and relevant judicial precedents.
5. Consideration of anticipatory bail.

Detailed Analysis:

1. Allegations of Money Laundering under the PMLA:
The petitioner is accused of being involved in a money laundering case under Section 45 of the PMLA for the commission of an offense under Section 3, punishable under Section 4 of the PMLA. The case stems from two FIRs registered for offenses under Sections 419, 420, 467, 468, 469, 471, and 120B of the Indian Penal Code. The allegations involve the misuse of bank accounts held by various individuals and firms, including the petitioner’s firm, M/s Shivam Agency.

2. Misuse of Bank Accounts and Connivance with Bank Officials:
The prosecution alleges that bank accounts in the names of several individuals were misused in connivance with bank officials. Specifically, large sums of money were deposited and transferred without the account holders' knowledge and consent. The Enforcement Directorate (ED) initiated an investigation based on a letter from the Superintendent of Police, Economic Offence, Patna, leading to the registration of the case under PMLA.

3. Petitioner's Involvement and Defense:
The petitioner, proprietor of M/s Shivam Agency, is accused of receiving Rs.1.81 crores through RTGS transfers from accounts allegedly linked to fraudulent activities. The petitioner claims innocence, stating that he received payments for legitimate sugar transactions from one Chakresh Jain, who acted as a mediator. The petitioner asserts that he had no direct dealings with the individuals whose accounts were used for the transfers and that he was unaware of any fraudulent activities. The petitioner also highlights his cooperation with the ED and his clean antecedents.

4. Application of Section 45 of the PMLA and Relevant Judicial Precedents:
The court examined the applicability of Section 45 of the PMLA, which imposes stringent conditions for granting bail. The prosecution argued that the petitioner knowingly engaged in money laundering activities, citing the transfer of proceeds of crime amounting to Rs.1.81 crores to the petitioner's firm. The court referred to several judicial precedents, including the Supreme Court's rulings in Satender Kumar Antil's case and P. Chidambaram's case, emphasizing the seriousness of economic offenses and the need for strict adherence to Section 45 conditions.

5. Consideration of Anticipatory Bail:
The court noted that the petitioner’s involvement in money laundering damages the economic and financial system of the country, which can have severe implications, including funding terrorist activities. Given the allegations and the material evidence presented, the court concluded that the petitioner did not meet the criteria for anticipatory bail under Section 45 of the PMLA. The court emphasized that the offense of money laundering is more serious than murder due to its potential to disrupt the economy and national security.

Conclusion:
After considering the submissions and the gravity of the allegations, the court rejected the petitioner's prayer for anticipatory bail, citing sufficient material evidence to prove the petitioner's complicity in the money laundering activities. The court held that granting anticipatory bail would not be appropriate given the serious nature of the offense and the potential impact on the country's economic and financial system.