2025 (4) TMI 696 - SCH - Money Laundering

Seeking grant of bail - Money Laundering - predicate offence - proceeds of crime - offence under Sections 420 467 471 and 120B of the Indian Penal Code 1860 and Sections 7 and 12 of the Prevention of Corruption Act 1988 - HELD THAT - As far as the prosecution under the Prevention of Money Laundering Act 2002 (PMLA) the appellant has undergone incarceration for a period of 9 months. The case of the prosecution appears to be that the proceeds of crime were transferred in the accounts of private limited company with which the appellant is associated and thereafter there were further transfers at his instance. There are 44 witnesses cited in the complaint and supplementary complaints. Charge is not yet framed. As of today there are 17 accused and even hearing on charge has not taken place. Therefore there is no possibility of even commencement of the trial in near future. Considering the peculiar facts of the case and the observations made in the earlier order in the predicate offence it is inclined to enlarge the appellant on bail. Appeal allowed.

Summary

In the Supreme Court case, presided over by Justices Abhay S. Oka and Ujjal Bhuyan, the appellant was granted bail. The appellant, previously granted bail in a predicate offense, faces charges under Sections 420, 467, 471, and 120B of the Indian Penal Code, 1860, and Sections 7 and 12 of the Prevention of Corruption Act, 1988. Additionally, under the Prevention of Money Laundering Act, 2002 (PMLA), the appellant has been incarcerated for nine months. The prosecution alleges that the appellant facilitated the transfer of proceeds of crime through a private limited company. With 44 witnesses and 17 accused, the trial has not commenced, and charges are yet to be framed.The Court considered the absence of evidence indicating attempts to tamper with witnesses and the lack of antecedents against the appellant. Given these circumstances and the delay in trial commencement, the Court decided to "enlarge the appellant on bail." The appellant must appear before the Special Court within a week and comply with stringent bail conditions, including depositing their passport and attending all court dates. The appeal was allowed, with the respondent entitled to be heard on the bail conditions.