2021 (9) TMI 661 - HC - Money Laundering

Money Laundering - seeking grant of regular bail - conspiracy - creating false and forged documents for the purpose of cheating and used the said false documents as genuine knowing fully well as false and made transactions in various banks fraudulently - satisfaction of condition of twin limitation for grant of bail u/s 45 (1) of PMLA Act - HELD THAT - This Court without going into merits of the case, taking into consideration the factors that the petitioner has been languishing in jail from the last 360 days, petitioner himself voluntarily surrendered before the Court below in the year 2019, other accused were already enlarged on bail and the health condition of petitioner, this Court deems it appropriate to grant interim bail to the petitioner for a period one month on certain conditions. The petitioner shall be enlarged on interim bail for a period of one month i.e. from 08.09.2021 to 07.10.2021 (both days inclusive) on his executing a bond for a sum of ₹ 10,00,000/- with two sureties each for a like sum to the satisfaction of learned Metropolitan Sessions Judge-cum-Additional District and Sessions Judge-cum-Special Judge for Trial of Prevention of Money Laundering Act, Visakhapatnam. On such release, the petitioner shall not leave the country and shall not tamper with evidence and influence the witnesses - Post this matter on 05.10.2021.

Summary

Issues:
Grant of regular bail under Sections 437 and 439 of Cr.P.C. in connection with ECIR/VSKZO/03/2017 registered under PMLA Act.

Analysis:
1. The petitioner sought regular bail under Sections 437 and 439 of the Criminal Procedure Code in connection with a case registered by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002 (PMLA Act). The case involved allegations of creating false documents, fraudulent transactions in banks, and transferring a significant amount of money abroad based on bogus documents.

2. The petitioner's involvement was corroborated by statements from individuals like Vaddi Mahesh, Thankiesh Aravindan, and Chellathurai Maheswaran, linking him to the illegal activities. Despite being in custody for a period, the petitioner's statement was not recorded by the Enforcement Directorate initially, but later statements were recorded following a court order.

3. The petitioner made multiple attempts to secure bail, including approaching the Supreme Court and filing various petitions before different courts seeking relief. The petitioner also cited health issues and being a senior citizen as grounds for bail consideration.

4. The Enforcement Directorate opposed bail, highlighting the petitioner's history of evasion, smuggling activities, and the complex nature of the case involving significant amounts of money being transferred abroad. The Directorate emphasized the risk of flight if bail was granted.

5. The arguments presented by both sides focused on the interpretation of Section 45 of the PMLA Act, with the petitioner's counsel contending that the conditions for bail had changed post an amendment and that the petitioner was unfairly implicated. The Enforcement Directorate stressed the seriousness of economic offenses and the need to consider the impact on the economy.

6. After considering the submissions, the Court granted interim bail to the petitioner for one month, taking into account the petitioner's prolonged incarceration, voluntary surrender in the past, and health conditions. The bail was subject to conditions such as a bond amount, restrictions on leaving the country, tampering with evidence, and regular reporting to the Enforcement Directorate.

7. The Court set a date for further proceedings and emphasized the need for compliance with the bail conditions during the interim period. The judgment balanced the petitioner's rights with the seriousness of the allegations and the need to ensure the petitioner's presence for trial.

This detailed analysis covers the issues involved in the judgment, the arguments presented by both sides, and the Court's decision to grant interim bail to the petitioner.