2019 (3) TMI 2005 - HC - Money Laundering

Money Laundering - scheduled offences - Seeking suspension of sentence as well as payment of fine pending consideration of appeal - HELD THAT - The learned trial Court has indisputably kept the trial pending so far as offences punishable under scheduled offences of the Act is concerned and separately conducted the trial under Section 4 of the Prevention of Money Laundering Act 2002. This Court deems it appropriate to suspend the sentence as well as fine imposed upon the present applicant till pending consideration and final disposal of appeal. It appears that the present application requires consideration and prayer in terms of bail is allowed. The sentence imposed by judgment and order dated 29.1.2019 passed by learned Principal District Sessions Judge and Designated Special Judge( PMLA) Ahmedabad (Rural) in PMLA Case No.2 of 2011 is hereby suspended pending hearing and final disposal of the present criminal appeal. The applicant shall be released on regular bail by executing fresh bond of Rs.15, 000/- and one surety of like amount to the satisfaction of trial Court on condition that he shall proceed with the criminal appeal as and when it may be listed and he shall surrender his passport if having before the learned trial Court and shall not leave India without prior permission of this Court. Application disposed off.

Summary

Issues:
Application for suspension of sentence and payment of fine pending appeal.

Analysis:
The applicant, accused of offences under Section 4 of the Prevention of Money Laundering Act, 2002, and scheduled offences, sought suspension of sentence and fine pending appeal. The applicant argued that both proceedings arose from the same incident but under different sections. Citing a Jharkhand High Court decision, it was contended that the trial for scheduled offences and Section 4 offences should proceed simultaneously. The Jharkhand High Court held that the special court can try both offences concurrently, waiting for the result of the scheduled offence trial before imposing punishment under Section 4. The Gujarat High Court concurred, suspending the sentence and fine until the appeal's final disposal. The applicant was granted bail on conditions, including not leaving India without court permission.

The trial court had kept the scheduled offences trial pending while separately conducting the trial under Section 4 of the Prevention of Money Laundering Act, 2002. Following the Jharkhand High Court's interpretation, the Gujarat High Court suspended the sentence and fine, allowing the applicant's bail application. The court emphasized the need for simultaneous proceedings for both types of offences, ensuring an expedited trial process. The Enforcement Directorate was directed to explain the trial court's procedures and whether the matter could be remedied by conducting simultaneous proceedings, urging early hearing of the case.