2024 (4) TMI 114 - HC - Money Laundering

Seeking grant of bail - Money Laundering - money collected through cheating - beneficiaries of the money collected by GIPL from the investors on the pretext of supplying e-bikes to them - HELD THAT - The applicant is the Director of M/s Mars Envirotech Limited and M/s Accord Hydraulics Private Limited. Preferential shares were purchased by ITV, PTPL and PBPL the sister concern of GIPL by transferring huge amount. The applicant was also made an Investment Advisor in Pental Technologies Private Limited, sister concern of GIPL with full authority and financial powers. The properties of the applicant have been attached by the Enforcement Directorate which would go to show that there has been money laundering and a money trail was found showing his complicity and criminality. The applicant was one of the beneficiaries of the money collected by GIPL from the investors on the pretext of supplying e-bikes to them. M/s Accord Hydraulic Private Limited as per an agreement dated 01.12.2018 was to install a production and manufacturing unit for production of e-bikes but no e-bikes was supplied. The investigation in the matter has concluded and charge sheet has been submitted which also shows the implication of the applicant in the matter. Looking to the facts and circumstances of the case, the nature of offence, the gravity of incident, the magnitude of money involved, the applicant being a beneficiary of the money collected through cheating, the criminal antecedents of the applicant and the rejection of bail of coaccused by this Court and the Apex Court, this Court does not find it to be a fit case for bail. Bail application dismissed.

Issues Involved:
1. Applicant's Role and Involvement
2. Applicant's Criminal Background and Previous Bail Orders
3. Arguments by the State
4. Court's Decision on Bail Application

Summary:

1. Applicant's Role and Involvement:
The applicant, Badri Narayan Tiwari, filed a bail application under Section 439 of the Code of Criminal Procedure in connection with Case Crime No. 0206 of 2019, involving charges under Sections 420, 467, 468, 471, 409, 201, 120-B IPC. The case originated from an FIR lodged on 12.02.2019, alleging fraud by a company named Bike Bot powered by Gravit Innovative Promoter Limited (GIPL). The applicant was implicated during the investigation and is the Director of M/s Mars Envirotech Limited and M/s Accord Hydraulics Private Limited. He was also appointed as an Investment Advisor in Pental Technologies Private Limited, a sister concern of GIPL, with full authority and financial powers. The applicant's properties were attached by the Enforcement Directorate due to money laundering activities.

2. Applicant's Criminal Background and Previous Bail Orders:
The applicant has been granted bail in a related case under the Prevention of Money Laundering Act, 2002, and in other criminal cases by the Apex Court. The present case is the leading case, and other cases pertaining to the Bike Bot Scheme have been clubbed with it. The applicant has been involved in 59 criminal cases related to the Bike Bot Scheme and one case under the Gangsters Act. Co-accused individuals in connected cases have been granted bail by various courts.

3. Arguments by the State:
The State opposed the bail application, highlighting the applicant's involvement and role in the fraudulent activities. It was argued that Rs. 20.55 crores were transferred from GIPL's accounts to the applicant's companies. The applicant is a beneficiary of the money collected through cheating and forgery. The bail application under the Money Laundering Act only considered the aspect of money laundering. Witnesses revealed the applicant's participation in the transfer of money. The State emphasized the magnitude of the fraud, involving Rs. 29,76,52,09,644.62 from approximately 2,46,462 investors.

4. Court's Decision on Bail Application:
After hearing the counsels and perusing the records, the Court noted the applicant's involvement in the fraudulent activities and his role as a beneficiary of the money collected through cheating. The properties attached by the Enforcement Directorate indicated money laundering. The investigation concluded with a charge sheet implicating the applicant. The Court referenced the rejection of bail for co-accused Anil Kumar Shah by this Court and the Apex Court. Considering the facts, nature of the offence, gravity of the incident, magnitude of money involved, and the applicant's criminal antecedents, the Court found no ground for bail. Consequently, the bail application was rejected.

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