2023 (10) TMI 1403 - HC - Money Laundering

Money Laundering - grant of anticipatory bail - proceeds of crime - applicability of twin conditions mentioned in Section 45 of the PML Act - HELD THAT - On going through the allegation made against the applicant, it is clear that applicant is having disproportionate assets and said assets may be result of proceeds of crime committed by P.C. Singh. Applicant may have helped directly or indirectly in diverting the income to show that said income has been earned legally. Section 45 of the PML Act, 2022 is applicable with full force and a person who is under age of 16 years or is a woman or is sick or infirm and is accused of an offence with allegations of money laundering with less than one crore may be released on bail. Case of applicant will not fall within the proviso of Section 45 of the PML Act, 2002 as the amount which is said to have been earned by applicant along with other co-accused will be much above Rs. One Crore. The anticipatory bail application filed by applicant, is dismissed.

Summary

Issues involved:
Grant of anticipatory bail under Section 438 of the Code of Criminal Procedure for the offence under Sections 3/4 of the Prevention of Money Laundering Act (PMLA), 2002.

Analysis:
1. Applicant's Contentions:
The applicant, through the Senior Counsel, argued that the twin conditions in Section 45 of the PMLA are not applicable in this case. It was emphasized that the applicant has not been arrested under Section 19 of the PMLA. The defense highlighted that there are reasonable grounds to believe that the applicant is not guilty of the PMLA offence. It was further contended that the allegations of illegal appointment and money diversion do not prove money laundering. The lack of evidence regarding proceeds of crime and money laundering was stressed to support the request for anticipatory bail.

2. Respondent's Arguments:
The respondent, represented by counsel, asserted that the mandatory twin conditions in Section 45 of the PMLA must be applied. Reference was made to a judgment to support the argument that economic offences under special Acts are heinous and not ordinary offences. Concerns were raised about the applicant's potential involvement in diverting funds and the need for investigation. The respondent opposed anticipatory bail, suggesting that it could lead to similar offences and hinder the discovery of proceeds of crime.

3. Court's Observations:
The Enforcement Directorate filed a complaint against the applicant under Sections 3 and 4 of the PMLA, alleging illegal appointment and diversion of funds. The charge sheet detailed the disproportionate assets held by the applicant and his father, indicating potential money laundering activities. The court noted the significant deposits in the applicant's accounts exceeding his known income sources, implying possible proceeds of crime. It was highlighted that the applicant's involvement in diverting income to appear legal could constitute a PMLA offence.

4. Legal Analysis:
The court emphasized that it is premature to conclude the applicant's innocence, considering the disproportionate assets and financial discrepancies. The application of Section 45 of the PMLA was discussed, noting that the applicant's case did not meet the criteria for bail under the provision due to the substantial amount involved. The court found that the applicant's situation did not fall within the exceptions for bail eligibility based on age, gender, or health status, as the alleged amount exceeded one crore rupees.

5. Judgment:
After considering the arguments and evidence presented, the court dismissed the anticipatory bail application filed by the applicant. The decision was based on the seriousness of the allegations, the potential involvement in money laundering activities, and the lack of fulfillment of the bail conditions specified under Section 45 of the PMLA.

This comprehensive analysis of the judgment highlights the legal arguments, court observations, and reasoning behind the decision to deny anticipatory bail in a case involving allegations of money laundering under the PMLA.