2022 (11) TMI 50 - HC - Money Laundering

Money Laundering - Seeking grant of bail - scheduled offences - proceeds of crime - untainted money - framing of charges - Sections 417 of the IPC and under Sections 17, 40 (1)((b) and 40(1)(c) of the Unlawful Activities (Prevention) Act, 1967 - HELD THAT - The applicant is in custody for more than 2 years, particularly considering that schedule offence has been registered in the year 2013 and the investigation in respect of other offences commenced after the knowledge of registration of schedule offence and the investigation started belatedly and complaint was filed after more than 5 years, and that the schedule offence has been finished and till so far the Special Court has not framed the charges under the PMLA Act; for the schedule offence the applicant has been in jail for more than 8 years and was granted bail under Section 389 of the CrPC - further considering the nature of accusation and the evidence and that the applicant has taken a specific defence that one unknown person has called him that he has won the lottery and the applicant has been trapped in such a organized crime and further considering the statement given by the applicant under Section 50 of the PMLA Act; without further commenting anything on the merits of the case and that trial is likely to take considerable time, this Court is inclined to release the applicant on bail. The applicant is directed to be released on bail subject to the conditions imposed - application allowed.

Summary

Issues:
1. Bail application under Sections 3 & 4 of the Prevention of Money Laundering Act.
2. Previous dismissal of bail application.
3. Allegations of money laundering and involvement in criminal activities.
4. Claim of innocence and false implication.
5. Delay in investigation and subsequent arrest.
6. Legal provisions under the PMLA Act regarding bail.
7. Arguments by the applicant's counsel for bail.
8. Opposition by the ED and reliance on legal precedents.
9. Consideration of seriousness of the offence and likelihood of absconding.
10. Grant of bail by the Court and conditions imposed.

Detailed Analysis:
1. The applicant filed a bail application under Sections 3 & 4 of the Prevention of Money Laundering Act after being arrested in connection with a case registered by the Enforcement Directorate for alleged offences. This was the second bail application, with the first being withdrawn earlier.

2. The prosecution alleged that the applicant and co-accused were involved in offences under various sections of the IPC and the Unlawful Activities (Prevention) Act. The Enforcement Directorate filed a complaint under the PMLA Act, accusing the applicant of receiving funds for criminal activities and money laundering. The applicant claimed innocence and false implication.

3. The applicant's counsel argued that the applicant had already served a significant portion of the potential sentence for related offences and that the investigation had been unduly delayed. The ED was accused of deliberate delay to harass the applicant.

4. The ED opposed the bail application, citing the withdrawal of the previous application and the seriousness of the allegations. Reference was made to legal precedents highlighting the gravity of economic offences and the burden of proof on the accused.

5. The Court considered the provisions of Section 45 of the PMLA Act regarding bail and the specific circumstances of the case. It noted the prolonged custody of the applicant and the delayed investigation, ultimately deciding to grant bail based on the length of detention and other relevant factors.

6. Bail was granted with specific conditions, including the execution of a personal bond, appearance before the trial court, restrictions on influencing witnesses, and reporting movements to the police. The applicant was also required to disclose financial details and property holdings.

This detailed analysis covers the issues raised in the judgment, the arguments presented by both sides, the legal provisions considered, and the final decision of the Court to grant bail with specific conditions.