2022 (11) TMI 49 - HC - Money Laundering

Money Laundering - Seeking grant of Regular Bail - loan amount declared as NPA - chance of his absconding or tampering with the evidence or influencing the witnesses or not - HELD THAT - From the order sheets of the trial Court as well as the documents in the case diary, it is clear that the applicant is not produced before the competent Court within 24 hours of his detention. Charge sheet/complaint has been filed before the learned trial Court. As per order sheet dated 2.5.2022, the case is at preliminary state for argument before registration. Looking to the number of documents and list of witnesses, there is every likelihood that conclusion of trial would take considerable time. Therefore, in the totality of facts and circumstances of the case, this Court is of the opinion that present is a fit case to release the applicant on bail. It is directed that the applicant shall be released on bail on his executing a personal bond for a sum of Rs.10 lacs with two sureties of the like amount to the satisfaction of the trial Court for his appearance before the said Court as and when directed, till final disposal of the trial, on the further conditions imposed - application allowed.

Summary

Issues Involved:
1. Legality of the applicant's detention and arrest.
2. Issuance and validity of the Look Out Circular (LOC).
3. Applicant's entitlement to bail under the Prevention of Money Laundering Act (PMLA).

Issue-wise Detailed Analysis:

1. Legality of the Applicant's Detention and Arrest:

The applicant contended that his detention was unconstitutional and illegal from the inception, arguing that he was not produced before the remand court within 24 hours of his arrest as required by law. He was detained at IGI Airport, New Delhi on 4.3.2022 and taken into custody by the Enforcement Directorate (ED) on 5.3.2022, but the arrest memo was prepared only on 6.3.2022 in Raipur. The court referred to Article 22 of the Constitution of India, which mandates that an arrested person must be produced before the nearest magistrate within 24 hours. The court also cited the Supreme Court's decision in Manoj Vs. State of MP, which emphasized that detention beyond 24 hours without magistrate's authority is unlawful. The court concluded that the applicant was not produced before the competent court within 24 hours of his detention, making his arrest illegal.

2. Issuance and Validity of the Look Out Circular (LOC):

The applicant argued that the LOC issued against him was arbitrary and malafide, asserting that there were no valid reasons for its issuance as he was not avoiding any warrants or trial. The LOC was issued on 4.10.2019, and the applicant was detained based on this LOC at IGI Airport. The respondent countered that the LOC was issued because the applicant was a frequent foreign traveler and posed a flight risk. The court, however, did not delve deeply into the legality of the LOC in this bail application, stating that since the complaint had been filed and the matter was pending before the trial court, it was not appropriate to comment on the LOC's validity at this stage.

3. Applicant's Entitlement to Bail under the Prevention of Money Laundering Act (PMLA):

The applicant sought bail under Section 439 of CrPC, arguing that he had cooperated with the investigation, had no intention to abscond, and that the trial's conclusion would take considerable time due to the number of documents and witnesses involved. The respondent opposed the bail, highlighting the gravity of economic offences and the applicant's potential to tamper with evidence or influence witnesses. The court acknowledged the special nature of PMLA but noted that the applicant had not been produced before the competent court within 24 hours, which violated constitutional protections. Considering the totality of circumstances, the court deemed it appropriate to grant bail, subject to certain conditions to ensure the applicant's presence during the trial and prevent interference with the judicial process.

Conclusion:

The court granted bail to the applicant, directing him to execute a personal bond for Rs.10 lacs with two sureties of the same amount. The applicant was also required to comply with several conditions, including not leaving the headquarters without permission, not influencing witnesses, and submitting his identification documents and property details to the trial court. The court refrained from making any comments on the legality of the LOC at this stage.