2024 (12) TMI 745 - SC - Money Laundering

Money Laundering - predicate offence - Legitimacy of recruitment procedures for various educational posts - HELD THAT - It is worth reiterating that this Court, through a catena of decisions, has consistently emphasized that prolonged incarceration of an accused awaiting trial unjustly deprives them of their right to personal liberty. Even statutory embargoes on the grant of bail must yield when weighed against the paramount importance of the right to life and liberty under Article 21 of the Constitution, particularly in cases where such incarceration extends over an unreasonably long period without conclusion of trial. Equally well-established is the principle that the grant of bail must be determined based on the unique circumstances of each case, balanced against settled factors such as the gravity of the offence, the nature of the allegations, likelihood of interference with the ongoing investigation, the possibility of evidence tampering, threat or influence over the material witnesses, the societal impact of such release, and the risk of the accused absconding among others. Since the charge sheet in the ED Case (ECIR No. KLZO- 11/19/2022) has already been filed but charges are yet to be framed, the Trial Court is directed to decide on framing of charges before the commencement of the winter vacations and/or before 31.12.2024, whichever is earlier - the Trial Court shall thereafter fix a date within the second and third week of January 2025 for recording the statements of such prosecution witnesses who are the most material or vulnerable - petition disposed off.

Issues Involved:

1. Legitimacy of recruitment procedures for various educational posts.
2. Allegations of corrupt practices in the Teachers Eligibility Test (TET).
3. Investigation and charges under the Prevention of Corruption Act and the Indian Penal Code.
4. Allegations of money laundering under the Prevention of Money Laundering Act.
5. Grounds for bail application and its rejection.
6. Consideration of prolonged incarceration and right to personal liberty.
7. Examination of mitigating circumstances and societal impact of alleged actions.
8. Directions for trial proceedings and conditions for granting bail.

Issue-Wise Detailed Analysis:

1. Legitimacy of Recruitment Procedures:
The judgment addresses the legitimacy of recruitment procedures for Primary School Teachers, Assistant School Teachers, and Group C and D staff in West Bengal. Writ petitions filed by unsuccessful candidates in the Teachers Eligibility Test (TET) alleged corrupt practices in the recruitment process. The High Court of Calcutta directed the Central Bureau of Investigation (CBI) to conduct a thorough investigation, leading to the registration of an FIR against certain functionaries for dubious selection processes.

2. Allegations of Corrupt Practices in TET:
The allegations centered on the TET conducted by the West Bengal Board of Primary Education, where it was claimed that the answer key was manipulated to favor ineligible candidates. The CBI's investigation revealed an "unholy nexus" facilitating appointments in exchange for money, leading to charges under various sections of the Prevention of Corruption Act and the Indian Penal Code.

3. Investigation and Charges:
Following the CBI's Predicate FIR, the Enforcement Directorate (ED) also registered a case for money laundering. The ED conducted raids, seizing cash and gold, and arrested the Appellant under the Prevention of Money Laundering Act. The Appellant's involvement in illegal appointments and the handling of proceeds of crime were central to the charges.

4. Allegations of Money Laundering:
The ED's investigation highlighted the use of dummy companies to conceal proceeds of crime. The Appellant was accused of using these entities for acquiring and projecting illegal earnings, leading to substantial seizures of cash and valuables.

5. Grounds for Bail Application and Rejection:
The Appellant sought bail on several grounds, including prolonged incarceration, lack of direct charges in the predicate offense, age, health issues, and parity with co-accused who were granted bail. The High Court rejected the bail application, citing the Appellant's failure to meet the twin conditions under Section 45 of the PMLA and the statements made by witnesses.

6. Consideration of Prolonged Incarceration and Right to Personal Liberty:
The Supreme Court emphasized the importance of the right to personal liberty, noting that prolonged incarceration without trial conclusion unjustly deprives an accused of this right. The Court balanced this against statutory embargoes on bail, especially given the serious nature of the allegations.

7. Examination of Mitigating Circumstances and Societal Impact:
The Court considered the Appellant's mitigating circumstances, including his age and health, against the broader societal harm caused by the alleged corruption in public appointments. The statement of the Appellant's close associate, implicating him in the crime, was deemed significant.

8. Directions for Trial Proceedings and Conditions for Granting Bail:
The Court directed the Trial Court to expedite the framing of charges and examination of key witnesses, ensuring the Appellant's cooperation. Bail was to be granted upon completion of these steps, with strict conditions to prevent any influence over witnesses or trial delays. The Appellant was also barred from holding any public office during the trial.

The judgment concludes with specific instructions for the trial process and clarifies that the directions pertain only to the ED Case, without affecting other ongoing investigations.

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