2023 (9) TMI 186 - HC - Money Laundering

Money Laundering - seeking grant of bail - scheduled offences - use of proceeds of crime - statement of witnesses as recorded under section 50(3) of PML Act, not supporting the allegation - Reasons to believe - non-cooperation during investigation - HELD THAT - Petitioner is accused in 8 criminal cases which appears schedule offence in terms of the Act, proceeds of which prima facie appears to create huge property and cash, further. Petitioner fails to furnish prima facie satisfactory explanation regarding huge fixed assets and cash available with him, while recording his statement under section 50(3) of the Act, where it appears to investigating agency that petitioner is not co-operating during investigation, where investigation regarding remaining proceeds of crime above Rs. 4,04,29,415.29/- is still going on. Therefore, this Court at this stage has no reasonable grounds for believing that petitioner is not guilty of offence and he is not likely to commit offence while on bail. The prayer of bail of petitioner is rejected herewith.

Issues Involved:
1. Petitioner's Bail Application under the Prevention of Money Laundering Act (PMLA).
2. Allegations and Evidence against the Petitioner.
3. Petitioner's Defense and Arguments.
4. Prosecution's Counter-Arguments.
5. Legal Precedents and Statutory Provisions.
6. Court's Decision on Bail.

Summary:

1. Petitioner's Bail Application under the Prevention of Money Laundering Act (PMLA):
The petitioner sought bail in connection with Special (Trial) PMLA Case No. 7 of 2022, arising out of ECIR No. PTZO/05/2014, for offences under Sections 3, 4, 44, and 45 of the Prevention of Money Laundering Act, 2002.

2. Allegations and Evidence against the Petitioner:
The petitioner is accused in eight criminal cases involving serious charges under the IPC and the Arms Act. The prosecution alleged that the petitioner acquired assets through scheduled offences and invested proceeds of crime in immovable properties and unaccounted bank deposits, amounting to approximately Rs. 4,04,29,415/-. The properties and bank accounts have been provisionally attached, and the petitioner is accused of being part of a "land Mafia Gang."

3. Petitioner's Defense and Arguments:
The petitioner's counsel argued that he is innocent and falsely implicated. The petitioner is on bail in all eight cases, and the allegations are based on assumptions and suspicions without a prima facie link between scheduled offences and proceeds of crime. The petitioner claimed his income from dairy farming and other legitimate sources, which were not considered by the authorities.

4. Prosecution's Counter-Arguments:
The prosecution argued that the petitioner is a habitual offender involved in organized crime, including murder, extortion, and forgery. Statements from various witnesses under Section 50(3) of the Act corroborate the allegations. The petitioner and his associates allegedly used deceitful means to acquire and sell properties, generating proceeds of crime.

5. Legal Precedents and Statutory Provisions:
The court referred to the legal principles established in cases like *Sanjay Chandra vs. CBI*, *P. Chidambaram vs. Directorate of Enforcement*, and *Rohit Tandon vs. Directorate of Enforcement*. The stringent conditions under Section 45 of the PMLA, which include the requirement for the court to be satisfied that the accused is not guilty and not likely to commit an offence while on bail, were emphasized.

6. Court's Decision on Bail:
The court found that the petitioner failed to provide satisfactory explanations for his assets and was not cooperating with the investigation. Given the serious nature of the allegations and ongoing investigation, the court concluded that there were no reasonable grounds to believe the petitioner was not guilty or would not commit an offence if released on bail. Thus, the bail application was rejected.

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