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2024 (2) TMI 89 - HC - Money Laundering


Issues Involved:
1. Grant of regular bail under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 (PMLA).
2. Allegations related to acquisition of three immovable properties.
3. Compliance with Section 19(1) of the PMLA Act.
4. Hardships faced by the petitioner while in judicial custody.
5. Examination of twin conditions under Section 45 of the PMLA Act.

Summary:

1. Grant of Regular Bail under PMLA:
The petitioner sought regular bail for offences under Sections 3 and 4 of the PMLA. The petitioner cooperated with the investigation and was arrested on 31.07.2023. The petitioner argued that despite cooperating, the Enforcement Directorate (ED) did not provide written grounds for arrest, violating Section 19(1) of the PMLA Act. The petitioner emphasized that he is not a flight risk, has not tampered with evidence, and his participation in the trial is secured.

2. Allegations Related to Acquisition of Three Properties:
The allegations pertain to three properties: Cheshire Home Road Land, Siram Mauza Land, and Pugru Mauza Land. The petitioner argued that he purchased these lands through legal means and was unaware of any forgery involved. For Cheshire Home Road Land, it was contended that the petitioner was a bonafide purchaser and had no role in creating forged documents. For Siram Mauza and Pugru Mauza lands, it was argued that no scheduled offence was reported, and the petitioner purchased the properties legally.

3. Compliance with Section 19(1) of PMLA Act:
The court observed that the petitioner's argument regarding non-compliance with Section 19(1) of the PMLA Act was not pressed during arguments and was not considered for granting bail. The court referred to the recent decision in Ram Kishor Arora v. Directorate of Enforcement, 2023 INSC 1082, which is applicable to the present case.

4. Hardships Faced by Petitioner in Judicial Custody:
The petitioner highlighted financial hardships and medical conditions while in custody. However, the court did not consider bail on medical grounds, noting that the ailments were not life-threatening and did not justify bail solely on health grounds.

5. Examination of Twin Conditions under Section 45 of PMLA Act:
The court examined whether the petitioner met the twin conditions under Section 45(1)(ii) of the PMLA Act, which requires reasonable grounds to believe that the accused is not guilty and is not likely to commit an offence while on bail. The court found that there was no material indicating the petitioner's involvement in creating forged documents or knowledge of such forgery. The court also noted that no scheduled offence was reported for the other two properties, and the continuation of proceedings without a predicate offence would cause a miscarriage of justice.

Conclusion:
The court directed the petitioner to be released on bail with conditions, including surrendering his passport, not tampering with evidence, and appearing before the trial court on each date. The findings were tentative and would not affect the merits of the case during the trial.

 

 

 

 

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