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2021 (5) TMI 977 - HC - Money LaunderingHawala transaction - proceeds of crime - Scheduled offences - Section 44 of PMLA - HELD THAT - Keeping in mind the health of the petitioner and also the fact that the petitioner is in custody since 15.01.2021, this Court is inclined to grant interim bail to the petitioner for 30 days from the date of his release on the conditions imposed - application allowed.
Issues: Bail application under Section 439 Cr.P.C, Interpretation of PMLA provisions, Scheduled offences under PMLA, Justification of arrest under PMLA, Ad-interim bail under Section 482 Cr.P.C for medical grounds
Issue 1: Bail application under Section 439 Cr.P.C The petitioner filed a bail application under Section 439 Cr.P.C seeking regular bail in connection with an Enforcement Case Information Report (ECIR) registered against him for offences under Sections 420/468/120B IPC. The petitioner was alleged to be involved in money laundering activities along with other individuals, including a Chinese national. The Enforcement Directorate registered the ECIR against the petitioner and others, stating the offence of money laundering under the Prevention of Money Laundering Act, 2002 (PMLA) was made out. Issue 2: Interpretation of PMLA provisions The defense argued that the petitioner's arrest under Section 19 of the PMLA was unjustified as it was not established which scheduled offence the petitioner was connected to, making the proceeds of crime a proceed of crime. The defense emphasized that for an offence under Section 3 of the PMLA to be committed, there must be a direct or indirect involvement in any process connected with the proceeds of crime. The defense contended that until a scheduled offence was committed and the petitioner's connection to the proceeds of crime was proven, his arrest under the PMLA was unwarranted. Issue 3: Scheduled offences under PMLA The prosecution argued that the petitioner assisted in committing scheduled offences under the PMLA, including Sections 420/467/468/471 and 120B IPC. It was alleged that the petitioner's involvement in assisting the main accused in money laundering activities justified his arrest under the PMLA. The prosecution emphasized that the money involved in the shell companies incorporated at the behest of the main accused was tainted, justifying the petitioner's arrest. Issue 4: Justification of arrest under PMLA The prosecution highlighted that the PMLA was enacted to combat money laundering, which posed a serious threat to the financial system and integrity of the country. The prosecution argued that the petitioner's arrest was justified based on his alleged involvement in scheduled offences under the PMLA and his assistance to the main accused in money laundering activities. The prosecution contended that the petitioner's arrest was necessary to prevent the concealment or transfer of proceeds of crime, which could frustrate confiscation proceedings. Issue 5: Ad-interim bail under Section 482 Cr.P.C for medical grounds In a separate application under Section 482 Cr.P.C, the petitioner sought ad-interim bail on medical grounds. Considering the petitioner's health and the duration of his custody, the Court granted interim bail for 30 days with specific conditions, including furnishing a personal bond, surrendering the passport, reporting to the police station, and refraining from tampering with evidence or influencing witnesses. Violation of these conditions would result in the cancellation of bail, and the petitioner was directed to surrender after the interim bail period. This detailed analysis covers the various issues raised in the judgment, including the bail application, interpretation of PMLA provisions, scheduled offences under PMLA, justification of arrest under PMLA, and the grant of ad-interim bail on medical grounds.
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