2022 (9) TMI 1416 - SC - Money Laundering

Money Laundering - scheduled or predicate offence - non-application of mind - violation of principles of natural justice - HELD THAT - In the instant case, the appellant was taken in custody on 19.06.2019 and has remained in custody since then. Thus, the appellant has completed more than three years of actual custody in connection with the offence in respect of PML Act. It has been brought to notice that Accused Nos. 2, 3, 4 and 7 have not yet been arrested and though the cognizance in the matter has been taken, charges are yet to be framed. Considering the entirety of the matter and the fact that the appellant is a senior citizen, the appellant is entitled to the relief of bail, subject to conditions imposed - application allowed.

Summary

Issues: Bail application challenging High Court order quashing sanction in predicate offences under PML Act.

In this judgment, the Supreme Court granted bail to the appellant, who was the Original Accused No.vi in a P.M.L.A. Special Case. The appellant was accused of committing offences under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, with scheduled predicate offences under the Indian Penal Code and Companies Act, 2013. The High Court had quashed the sanction issued in the predicate offences due to non-application of mind, which was challenged in the Supreme Court. The High Court had also granted interim stay on its order, which was continued by the Supreme Court. The appellant had been in custody for over three years and was a senior citizen. The Court noted that other accused were not yet arrested, and charges were yet to be framed against them. Considering the circumstances, the Supreme Court allowed the appeal, setting aside the High Court's order and directing the appellant to be produced before the trial court for bail. The Court imposed various conditions for bail, including depositing the passport, marking presence at Enforcement Directorate, not influencing witnesses, cooperating with trial proceedings, and cancellation of bail upon any violation of conditions. The Court emphasized that the appellant's bail was granted based on the totality of circumstances and his entitlement as a senior citizen, with a warning of bail cancellation for any non-compliance.

This judgment primarily dealt with the issue of granting bail to the appellant in a case involving offences under the Prevention of Money Laundering Act, 2002, with scheduled predicate offences under the Indian Penal Code and Companies Act, 2013. The High Court had quashed the sanction issued in the predicate offences due to non-application of mind, leading to the appeal in the Supreme Court. The Court considered the appellant's prolonged custody, status as a senior citizen, and the fact that other accused were not arrested yet in deciding to grant bail. The Court imposed specific conditions for bail to ensure the appellant's compliance with the legal process and prevent any misuse of liberty or witness interference. The judgment highlighted the importance of cooperation with trial proceedings and warned of bail cancellation for any violation of the imposed conditions.