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TMI Blog2025 (1) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... istered at Police Station - Crime Branch, Delhi for offences punishable under Sections 274, 275, 276, 420, 468, 471 read with 120B and 34 of the Indian Penal Code, 1860 (hereinafter "IPC"). 2. The brief facts that led to the filing of the instant application are that on 12th March, 2024, FIR No. 59/2024 was registered at Police Station - Crime Branch, Delhi under Sections 274, 275, 276, 420, 468, 471 read with 120B of the IPC, based on a complaint by SI Gulab Singh. The complaint alleged the involvement of several accused persons in the procurement, manufacturing and sale of spurious anti-cancer medicines. 3. In the said FIR, it has been alleged that the primary accused, namely Viphil Jain and Suraj Shat, in collusion with their several associates, were engaged in the illegal procurement of empty vials and raw materials of anti-cancer drugs such as Keytruda and Opdyta. These counterfeit drugs were allegedly manufactured and distributed in the market to unsuspecting cancer patients. 4. Pursuant to the information received, the police formed six teams to conduct simultaneous raids across Delhi-NCR on 11th March, 2024. During the raid at Flat No. 1101, Block-2, Eleventh Floor, CSP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 45 of the PMLA are not applicable and the applicant is entitled to bail under the relaxed conditions laid down in the proviso. He has placed his reliance on judgements titled Amit Katyal v. Union of India, 2024 SCC OnLine Del 1909, Rajeev Sharma v. Enforcement Directorate, (2022) 1 HCC (Del) 66 and Sidhique Kappan v. Directorate of Enforcement, 2022 SCC OnLine All 898. 10. It is submitted that the applicant had no knowledge or intent to commit the alleged offence and is nowhere implicated in the commission of the scheduled offence under FIR No. 59/2024. The applicant was initially named as a prosecution witness, and his name appears at Serial No. 4 in the list of witnesses in the charge sheet. This clearly indicates that he was not considered an accused in the scheduled offence and had no direct role in its commission. It is further submitted that the Hon'ble Supreme Court in Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1 has held that at the stage of bail under PMLA, the primary consideration is whether the accused possessed the requisite mens rea, and the Court is not required to record a positive finding of guilt. 11. It is submitted that the prosecution's case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in Javed Gulam Nabi Shaikh v. State of Maharashtra and Another, 2024 SCC OnLine SC 1693, has reiterated that prolonged incarceration during pending trials violates the fundamental right to a speedy trial under Article 21 of the Constitution. 15. It is submitted that the applicant satisfies the triple test for bail as he has roots in society and is not a flight risk, has no propensity to tamper with evidence considering that the entire evidence is documentary and in the custody of the investigating agency and the applicant is willing to abide by any conditions imposed by this Court. 16. It is submitted that the alleged violations/offence primarily fall under the Drugs and Cosmetics Act, 1940, which does not fall under the scheduled offences of the PMLA. The alleged sale of medicines without invoices is governed by Section 27 of the Drugs and Cosmetics Act, 1940 which prescribes specific penalties for such violations. Reliance in this regard has been placed on the judgment of the Hon'ble Supreme Court in Union of India v. Ashok Kumar Sharma, (2021) 12 SCC 674, wherein, it was held that regulatory infractions should be dealt with under specialized statutes onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the illicit nature of the transactions and was actively involved in the purchase and sale of spurious drugs without proper authorization or invoices. The applicant collaborated with co-accused Viphil Jain, Neeraj Chauhan, and Tushar Chauhan in the organized network of counterfeit drug distribution, as evidenced by bank transactions, statements, and seized records. The applicant's transactions were deliberately structured to conceal the source of illicit funds, making him complicit in the offence of money laundering. 25. It is submitted that the applicant has a history of criminal involvement, having been previously arrested in FIR No. 394/2021, registered at PS Punjabi Bagh under Sections 420, 384, 188, 240, 269 and 270 of the IPC read with Section 3 of the Epidemic Diseases Act, 1897 for hoarding controlled medication during the COVID-19 pandemic. Despite being on bail in that case, the applicant engaged in the present offence, demonstrating a continued propensity to commit economic crimes, thus making him ineligible for bail. 26. It is submitted that under the provisions of the PMLA, the investigation into the offence of money laundering is distinct and independent fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e conspirators involved in the offence. Since the proceeds of crime generated from the scam benefit all the accused persons directly or indirectly, the applicant herein cannot claim immunity based on the quantum of money involved in his specific transactions as the offence in the present ECIR has been committed by a group of individuals, thereby, forming a syndicate ultimately generating proceeds of crime more than the prescribed threshold. The applicant, by his active participation, is liable for the entire proceeds of crime, and thus, the instant bail application may be rejected. 32. It is also submitted that the applicant herein cannot seek exemption from the rigors of Section 45 of the PMLA by stating that the proceeds of crime attributed to him is less than Rs. 1 Crore. It is further submitted that the totality of the crime and entire transactions which have been funneled among all the accused persons, have to be taken into consideration for the constitution of offence under Section 45 of the PMLA. 33. Therefore, in view of the foregoing submissions, it is prayed that the instant application may be dismissed. 34. Heard learned counsel for the parties and perused the materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny other officer shall, immediately after arrest of such person under sub-section (1), forward a copy of the order along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such order and material for such period, as may be prescribed. (3) Every person arrested under sub-section (1) shall, within twenty-four hours, be taken to a [Special Court or] Judicial Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the [Special Court or] Magistrate's Court." 39. The following ingredients can be culled out from the reading of Section 19 (1) of the PMLA: firstly, the officer concerned must have some "material in his possession". Secondly, on the basis of such material, the officer should have a 'reason to believe' that any person has been 'guilty' of an offence punishable under the PMLA. Thirdly, such reasons should be recorded in 'writing' by the officer concerned and lastly, the perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Balaji v. State, (2024) 3 SCC 51, the Hon'ble Supreme Court has explained the mandate of Section 19 of PMLA by observing the following: "40. To effect an arrest, an officer authorised has to assess and evaluate the materials in his possession. Through such materials, he is expected to form a reason to believe that a person has been guilty of an offence punishable under the PMLA, 2002. Thereafter, he is at liberty to arrest, while performing his mandatory duty of recording the reasons. The said exercise has to be followed by way of an information being served on the arrestee of the grounds of arrest. Any non-compliance of the mandate of Section 19 (1) of the PMLA, 2002 would vitiate the very arrest itself. Under sub-section (2), the authorised officer shall immediately, after the arrest, forward a copy of the order as mandated under sub-section (1) together with the materials in his custody, forming the basis of his belief, to the adjudicating authority, in a sealed envelope. Needless to state, compliance of sub-section (2) is also a solemn function of the arresting authority which brooks no exception." 44. In case of Pankaj Bansal (Supra), the Hon'ble Supreme Court while reitera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of statutory language without reference to specific material evidence. 47. Conversely, the respondent argues that the arrest was made after due consideration of financial records and electronic evidence establishing the applicant's role in laundering proceeds of crime. It has been submitted that all statutory requirements were met and that the arrest was necessary to prevent the tampering and destruction of evidence and influence over witnesses. 48. In assessing the legality of the applicant's arrest, this Court must carefully examine the role assigned to the accused applicant herein which led to his arrest and ultimately to the present bail application. The relevant extract of the first supplementary prosecution complaint is as under: "...6.5 Lovee Narula (Retailer of medicine business) On scrutiny of the bank account statement of Lavee Narula bearing account no. 194401500829 (RUD-60) maintained with ICICI Bank, it is noticed that an amount of Rs. 12,97,500/- was transferred to the bank account of Neeraj Chauhan as mentioned below: TABLE-8 Date Narration Debit 03-01-2023 MMT/IMPS/300310271364/NA/Neeraj Cha/HDFC0000557, 237500 16-01-2023 MMT/IMPS/301507139046/NA/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, in total, Lovee Narula earned profit to the tune of Rs. 7,45,000/- from the sale of spurious anti-cancer medicines and is thereby is in possession of proceeds of crime to the tune of Rs. 7,45,000/-. Further, Lovee Narula in his statement recorded during the custodial interrogation stated that he purchased spurious anticancer medicine i.e Keytruda Injection from Neeraj Chauhan at an average price of Rs. 1,20,000/- per vial and payment for the same was made in the bank accounts of Neeraj Chauhan and Tushar Chauhan. Therefore, total amount of Rs. 55,95,500/was transferred as sale proceeds of spurious anti-cancer medicine i.e Keytruda Injection. Therefore, in total, 46 vials of spurious Keytruda Injection were purchased by Lovee Narula during the relevant period. Further Lovee Narula in his statement stated that he earned profit of Rs. 10,000/- per vial of Keytruda Injection which were purchased from Neeraj Chauhan. Therefore, in total Lovee Narula earned a profit of Rs. 4,60,000/- from selling of spurious anti-cancer medicine i.e Keytruda Injection. Further, Lovee Narula in his statement recorded during custodial interrogation stated that he purchased the spurious anti-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the PMLA is prima facie committed. 52. The investigating authority has also relied on statements of Viphil Jain, Tushar Chauhan and Neeraj Chauhan recorded under the Section 50 of the PMLA. As per the material available on record, on 5th April, 2024, the applicant, in his statement, admitted to paying Viphil Jain from his ICICI Bank account for spurious injections without invoices which were delivered to his shop and then sold to patients. He also admitted to purchasing spurious Keytruda injections from Neeraj Chauhan without invoices, making payments to Neeraj Chuahan's accounts with Axis Bank and HDFC Bank. 53. Furthermore, on 17th April, 2024, co-accused Viphil Jain, in his statement under Section 50 of the PMLA, claimed that the applicant herein bought unsealed vials of anticancer drugs without invoices and payment of the same was made in cash. He also mentioned about the applicant's extensive network in the medical field, including customers abroad, to whom he supplied anti-cancer medications. It was further stated by Viphil Jain that the applicant utilized his professional reputation to assist in generating and acquiring proceeds from illegal distribution of spurious ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant's own communications, which substantiate the applicant's involvement in the alleged offence. 60. Having examined the factual matrix and the evidence placed on record, this Court must now turn its attention to the statutory framework of Section 50 governing the evidentiary value of statements recorded under the PMLA. The said provision reads as under: "Section 50. Powers of authorities regarding summons, production of documents and to give evidence, etc (1) The Director shall, for the purposes of section 13, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely: - (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a [reporting entity] and examining him on oath; (c) compelling the production of records; (d) receiving evidence on affidavits; (e) issuing commissions for examination of witnesses and documents; and (f) any other matter which may be prescribed. (2) The Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall have power to summon any person whose attendance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50 of the PMLA: "We have independently examined the materials relied upon by the prosecution and also noted the inexplicable silence or reluctance of the appellant in disclosing the source from where such huge value of demonetised currency and also new currency has been acquired by him. The prosecution is relying on statements of 26 witnesses/accused already recorded, out of which 7 were considered by the Delhi High Court. These statements are admissible in evidence, in view of Section 50 of the 2002 Act. The same makes out a formidable case about the involvement of the appellant in commission of a serious offence of money laundering. It is, therefore, not possible for us to record satisfaction that there are reasonable grounds for believing that the appellant is not guilty of such offence." 65. In a recent judgment, the Hon'ble Supreme Court in Abhishek Banerjee v. Enforcement Directorate, (2024) 9 SCC 22 has again made similar observations which are as under: "21. ...Section 160 which falls under Ch. XII empowers the police officer making an investigation under the said chapter to require any person to attend within the limits of his own or adjoining station who, from the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any contradictions. 68. Accordingly, this Court is of the considered view that statements recorded under Section 50 of the PMLA are admissible in evidence and can be relied upon to establish culpability in money laundering cases. 69. Having examined the admissibility of statements recorded under Section 50 of the PMLA, this Court shall now proceed to analyze the statutory framework governing the burden of proof in proceedings related to proceeds of crime. "24. Burden of proof. --In any proceeding relating to proceeds of crime under this Act, -- (a) in the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering; and (b) in the case of any other person the Authority or Court, may presume that such proceeds of crime are involved in money-laundering." 70. From the bare perusal of Section 24 of the PMLA, it is evident that once a person is charged with the offence of money laundering under Section 3, the law presumes that the proceeds of crime are involved in money laundering unless the contrary is proven by the accused. 71. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal presumption would arise that such proceeds of crime are involved in money-laundering. The fact that the person concerned had no causal connection with such proceeds of crime and he is able to disprove the fact about his involvement in any process or activity connected therewith, by producing evidence in that regard, the legal presumption would stand rebutted. *** 239. Be it noted that the legal presumption under Section 24 (a) of the 2002 Act, would apply when the person is charged with the offence of money-laundering and his direct or indirect involvement in any process or activity connected with the proceeds of crime, is established. The existence of proceeds of crime is, therefore, a foundational fact, to be established by the prosecution, including the involvement of the person in any process or activity connected therewith. Once these foundational facts are established by the prosecution, the onus must then shift on the person facing charge of offence of money-laundering-to rebut the legal presumption that the proceeds of crime are not involved in money-laundering, by producing evidence which is within his personal knowledge. In other words, the expression "presume" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2024, 11.04.2024, 12.04.2024, 13.04.2024, 14.04.2024, 16.04.2024, 17.04.2024 and 18.04.2024 under section 50 of the PMLA, 2002; wherein he stated inter-alia that (RUD-8) Summons dated 08.04.2024 were issued to Viphil Jain and statement of Shri Viphil Jain was recorded on 08.04.2024in the Tihar Jail premises. Thereafter, Shri Viphil Jain was arrested u/s 19 of PMLA, 2002 on 08.04.2024. On 09.04.2024, Viphil Jain was produced before the Hon'ble Special Judge, PMLA, 2002, the Hon'ble Court allowed ED Custody of Viphil Jain for 14 days till 23.04.2024. During the recording of statements, Viphil Jain stated inter alia that: i. He had studied upto 10th Class. Thereafter, he started a medical business in the name of M/s Angel Pharmaceuticals with his partner Shri Mahesh Jain. Thereafter, Viphil Jain started dealing in general medicines as well as anti-cancer medicines. ii. He and Suraj Shat had rented the flat no. 1101 and 1110 and installed the capping and labeling machines for preparing fake/spurious anti-cancer medicines. They used to fill Fluconazol (FORCAN IV) in the empty vials of the anti-cancer medicine viz. Keytruda. Thereafter, they sold the same in open market through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il Jain; ix. He had deposited the sale proceeds of spurious anti-cancer medicines, received in cash, in the bank account of Suraj Shat and thereafter, as and when required, Suraj Shat used to transfer funds to the bank accounts provided to him by Viphil Jain. Further, he disclosed that he had also used sale proceeds of spurious anti-cancer medicines to purchase a new Car Toyota Fortuner in the name of his wife Deepali Jain. x. That, Viphil Jain received funds of Rs. 42,02,100/- from Lovee Narula Rs. 19,52,500 from Aditya Krishna and Rs. 5,40,000/- from Sneha Shivaji Kandhare in his bank account against the sale of unsealed vials of anti-cancer medicines without any bill and invoice to Lovee Narula. Further, he disclosed that Lovee Narula used to purchase these unsealed vials of anti-cancer medicines without any bill and invoice in cash from Aditya Krishna, Neeraj Chauhan, Gagan Khurana, Ayonij Jain and himself and used to sell the same to his customers in India as well as abroad. xi. That Viphil Jain received funds to the tune of Rs. 23,00,000/- from M/s Delhi Medicine Hub (Akshay Kumar) in the bank account of his son Sanyam Jain. He used to sell unsealed vials of anti-cancer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han was arrested u/s 19 of PMLA, 2002 on 08.04.2024. On 09.04.2024, Neeraj Chauhan was produced before the Hon'ble Special Judge, PMLA, 2002, the Hon'ble Court allowed ED Custody of Neeraj Chauhan for 14 days till 23.04.2024. During the statement of Neeraj Chauhan he inter alia stated : i. That he completed his Graduation from Jat College Baraut, UP in 2001-02. After completion of his Graduation, he joined Paras Hospital, Sec - 43, Gurugram Sushant Lok, thereafter in 2009 he joined Artemis Hospital, Gurugram as Co-ordinator at Medical Oncology, thereafter worked in BL Kappor Hospital Delhi, Max Hospital. From 2019-22, he worked in Paras Hospital Gurugram as Manager Oncology. After that in 2022, he incorporated a firm named M/s Futura Global Health for the purpose of Medical Tourism, wherein his wife Shrishti is proprietor. ii. That, he was introduced with Viphil Jain in Jaunary 2023 as Viphil Jain is also engaged in distribution of oncology medicines. Suraj Shat is assistant and co-worker of Viphil Jain. He used to purchase Keytruda (anti-cancer medicine) from Viphil Jain for Rs. 75,000-80,000/- per vial. On request of Viphil Jain, he used to arrange empty vials & empty boxes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the search proceedings of Crime Branch, New Delhi. He also stated that the said spurious/ fake/ empty vials of anti-cancer medicines were procured from Sh. Rohit Bisht, Sh. Jitender Dahiya, Sh. Majid Khan and Sh. Rehan. Neeraj Chauhan could not explain source of seized forex to the tune of USD 18000/- from his house. viii. That, he stated that end use of such recovered empty vials/ boxes was re-labeling and re-capping on anti-cancer filled medicines. ix. That, he bifurcated the said recovered and seized 89 lacs rupees from his house - Rs 9 to 10 lacs appear outstanding amount from M/s Mamta Enterprises (partnership firm of Mohak Thadani and Neeraj Chauhan) Rs. 20 to 25 lacs from his work done by Medical Tourism Rs. 1.90 lacs by selling of his old car Rs. 35 to 40 lacs was pertain to Viphil Jain (cash received by selling of fake spurious vials as anti-cancer medicines) and the same were being transferred to Viphil Jain Rs. 25 to 30 lacs was of selling unsealed anti-cancer vials of anti cancer medicines which were purchased by him from Rohit Bisht, Jitender Dahiya, Majid Khan. x. That, he did not raise any invoice or any bill in respect of purchase and sale of vials of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Narula. Lovee Narula is into trading medicines through Imperial Mart. Lovee Narula is also engaged in Import of medicines from Turkey, Russia, USA etc. On seeing the chat with ;Narula Janakpuri Medicine', he stated that Lovee Narula requested vials of Opdyta anticancer medicines without any bill or invoice. On demand of Lovee Narula, he sold vials of anti-cancer medicines viz. Keytruda, Opdyta, Perjeta and infinzi etc without any invoice and bill of Lovee Narula and received sale proceeds in cash. Further, he stated that sometimes he received payment in his bank account maintained with HDFC Bank. xviii. That, he stated that there are 02 firms namely M/s Mamta Enterprises. One Mamta Enterprises at Kotla Mubarakpur, Delhi, proprietorship concern of Sh. Mohak Thadani and other Mamta Enterprises at Sec-51, Gurugram is partnership firm of his and Mohak Thadani and established in July 2023, having bank account in Axis Bank. Further, he stated that he met Sh. Mohak Thadani in 2013-14 while he was working in BL Kapoor Hospital, thereafter they are in regular touch. In year 2023, they both decided to open a partnership firm in 2023 in Gurugram for supply of medicines in Gurugram and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accounts of Viphil Jain, Tushar Chauhan and sometimes in cash. iv. He also knew Aditya Krishna through his friend named Sh. Sagar Mehta, Mumbai. v. He doesn't have any bill for the medicines purchased from Viphil Jain as he never provided him the bills for the medicines. Also, he doesn't have any bills for the purchase of Keytruda Injection from Neeraj Chauhan. vi. He stated that due to his greed for more and more profit, he continued his medicine business with Viphil Jain and continued to purchase Opdyta Injection from him. vii. On being shown account statement of Account No 194401500829 maintained with ICICI Bank containing transaction details with Tushar Chauhan, he stated that he used to purchase Keytruda vials from Neeraj Chauhan for an amount of Rs. 1,20,000/- per vial and Tushar Chauhan is cousin of Neeraj Chauhan and as per direction of Neeraj Chauhan, he transferred the purchase amount to the tune of Rs. 44,26,000/- of the said spurious anti-cancer medicine Keytruda vials in the account of Tushar Chauhan. The amount transferred in the account of Tushar Chauhan was against the purchase of spurious anti-cancer medicines Keytruda without bills. viii. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medicines, wherein he replied that he imports medicine for patients which are not available or being marketed in India or they come under rare drugs category. xiii. He stated that he used to purchase the Keytruda Injection vial from Neeraj Chauhan and Tushar Chauhan in the price range of Rs. 1,15,000/- to Rs. 1,25,000/- per vial and sold the same for Rs. 1,25,000/- to Rs. 1,35,000/per vial. He further stated that he had earned the profit of Rs. 10,000/(approx.) per vial of Keytruda injection which was purchased from Neeraj Chauhan and Tushar Chauhan. xiv. He stated that he had purchased Opdyta injection from Viphil Jain in the price range of Rs. 50,000/- to 55,000/- per vial and sold the same for Rs. 55,000/- to Rs. 60,000/- He further stated that he had earned profit of Rs. 5,000/- (approx.) per vial ofOpdyta injection which was purchased from Viphil Jain. xv. He stated that it is correct to say that despite knowing Neeraj Chauhan and Tushar Chauhan were not authorized dealer of Keytruda injection, he purchased the Keytruda Injection from them. xvi. He stated that despite knowing Viphil Jain was not authorized dealer of Opdyta injection, he purchased the Opdyta injection f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and IndiaMart online application. As required, he used to contact with buyers of anti-cancer medicines and finalized the deal. Neeraj Chauhan used to provide him anti-cancer medicines for supply to buyers of anti-cancer medicine. Accordingly, he supplied those medicines and received sale proceeds of anti-cancer medicines in cash. He stated that Neeraj Chauhan never provided him any bill in respect of supply of anticancer medicines because Neeraj Chauhan used to sell anti-cancer medicines without bill and mostly in cash. iv. he stated that Neeraj Chauhan used to purchase anti-cancer medicines viz; Keytruda, Opdyta, Perjeta etc. from Viphil Jainwithout bill and in cas and sold the same without bill and in cash to his buyers. He assisted Neeraj Chauhan in purchase of anti-cancer medicines from Viphil Jain and sold the same to various buyers. He also worked for M/s.Futura Global Health firm of Neeraj Chauhan. He used to accommodate patients, provide medicines and provide some other facilities as required by the patients of Futura Global Health. v. he stated that he met Viphil Jain through Neeraj Chauhan in January, 2023. Neeraj Chauhan told him that Viphil Jain was a supplier of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -cancer medicines. xii. he stated that on instruction of Neeraj Chauhan he used to supply anticancer medicines including Keytruda injection to Lovee Narula, Aditya Krishna, Akshay Kumar without bill and in cash. Neeraj Chauhan also supplied Keytruda Injection to Lovee Narula, Aditya Krishna, Akshay Kumar directly without bill. xiii. he stated that for supply of each Keytruda Injection to Aditya Krishna, Neeraj Chauhan used to give him Rs. 1000/- (in cash) per vial of Keytruda Injection. xiv. he used to receive Keytruda Injections seal packed and Seal opened Keytruda lnjection from Neeraj Chauhan and supplied the same to various customers of Neeraj Chauhan without bill and mostly in cash and details of sale amount, he used to share with Neeraj Chauhan through WhatsApp Chat. xv. Further, he stated that by Seal opened Keytruda meant box of the Keytruda injection were seal opened. Neeraj Chauhan used to procure filled vials from Majid, Rohit Singh Bisht, Viphil jain and some others whom he did not know. Neeraj Chauhan also used to procure empty boxes of Keytruda injection from various persons whose name he did not know. Neeraj Chauhan used to match batch and expiry of filled vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven their testimonies under Section 50 of the PMLA and analysis of the same reveals that the accused persons, to some extent, corroborate each other's testimonies. 77. It is observed by this Court that the present applicant had strong network in the medical field, and he runs his family medial business in the name of M/s Narula Associates and M/s Imperial Healthcare Pvt. Ltd., which are one of the few authorized dealers of life saving medicines in NCR. Further, the long standing business relationship of the applicant with the prime accused Viphil Jain is revealed as it has been stated by the applicant that he knows Viphil Jain since the year 2021. The applicant has also admitted to purchasing unsealed anti-cancer medication from Viphil Jain and Neeraj Chauhan and has been selling the same to terminally ill cancer patients. 78. Further, the statement recorded on 23rd May, 2024 shows that the applicant accused has admitted to have transferred an amount of Rs. 42,26,000/- for the purchase of spurious anti-cancer medicines in the account of Tushar Chauhan without any invoice. Additionally, the applicant has also admitted to transferring of Rs. 40,00,000/- (approx.) to the account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge to the legality of the arrest is without any merit. 85. Furthermore, the contention that the applicant's arrest was solely based on the statement of co-accused persons under Section 50 of the PMLA is unfounded. 86. It is observed by this Court that the respondent has presented corroborative material, including financial transactions and records such as Whatsapp chats which form the part of the chargesheet in the predicate offence and the supplementary prosecution complaint, linking the applicant to the proceeds of crime. Considering the presumption under Section 24 of the PMLA, the burden shifted to the applicant to disprove his involvement in the alleged offence. However, the applicant has failed to provide any credible evidence to rebut the statutory presumption. 87. Additionally, the learned senior counsel has also prayed that the respondent ED has arrested the applicant in a pick and choose manner as the individuals namely Gagan Khurana, Sneha Shivani, Ayonji Jain who had graver role than the applicant were neither made accused by the ED, nor were arrested. Regarding the same, this Court is of the considered view that in terms of the settled position of law, an accused c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder this Act unless specifically authorised, by the Central Government by a general or special order, and, subject to such conditions as may be prescribed.] (2) The limitation on granting of bail specified in sub-section (1) is in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting of bail. [Explanation.--For the removal of doubts, it is clarified that the expression "Offences to be cognizable and non-bailable" shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 (2 of 1974), and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfillment of conditions under section 19 and subject to the conditions enshrined under this section.]" 91. This Court shall now proceed to analyze the statutory framework under Section 45 of the PMLA which governs the grant of bail in cases of money laundering. Section 45 imposes stringent conditions on the grant of bail. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fence under Section 45 PMLA, the twin conditions mentioned thereof become relevant. Section 45(1) PMLA reads as under: "45. Offences to be cognizable and non-bailable. - (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence [under this Act] shall be released on bail or on his own bond unless- (i) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail: Provided that a person, who, is under the age of sixteen years, or is a woman or is sick or infirm or is accused either on his own or along with other co-accused of money-laundering a sum of less than one crore rupees, may be released on bail, if the Special Court so directs: Provided further that the Special Court shall not take cognizance of any offence punishable under Section 4 except upon a complaint in writing made by- (i) the Director; or (ii) any officer of the Central Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... established by law. Liberty of the individual is always a Rule and deprivation is the exception. Deprivation can only be by the procedure established by law, which has to be a valid and reasonable procedure. Section 45 PMLA by imposing twin conditions does not re-write this principle to mean that deprivation is the norm and liberty is the exception. As set out earlier, all that is required is that in cases where bail is subject to the satisfaction of twin conditions, those conditions must be satisfied. *** Scope of inquiry under Section 45 PMLA 16. Coming back to the scope of inquiry under Section 45, Vijay Madanlal Choudhary [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1] , while reiterating and agreeing with the holding in Ranjitsing Brahmajeetsing Sharma v. State of Maharashtra [Ranjitsing Brahmajeetsing Sharma v. State of Maharashtra, (2005) 5 SCC 294 : 2005 SCC (Cri) 1057], held that the court while dealing with the application for grant of bail in PMLA need not delve deep into the merits of the case and only a view of the court based on the available material available on record is required. It held that the court is only required to place its view based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court passed in the matter of Saumya Chaurasia v. Enforcement Directorate, (2024) 6 SCC 401, wherein, the Hon'ble Court extensively discussed the working of a syndicate and how the proceeds of crime are attributable to the same along with the discretion granted to the Courts under the proviso to Section 45 of the PMLA. The relevant paragraphs of the same are as under; 19. As stated hereinabove, the supplementary complaint was filed against the appellant along with the other accused on 30-1-2023, in which the summary of investigative findings against each of the accused persons have been recorded in Para 8 thereof. The details of the investigation conducted by the respondent ED have been stated in Para 9 and the role of each accused including the appellant in the commission of alleged offence of money laundering has been stated in Para 10 thereof, which reads as under: "10. Role of accused in the offence of money laundering A. Evidences of offence of money laundering against Smt Saumya Chaurasia- Mrs Saumya Chaurasia is an officer of the Chhattisgarh State Civil Services who was posted as the Deputy Secretary in the Office of Chief Minister of Chhattisgarh a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of higher powers. Mr Manish Upadhyay, a relative of Mr Suryakant Tiwari, is a close associate of both Mrs Saumya Chaurasia & Mr Suryakant Tiwari. ED investigation has established that Mr Manish Upadhyay was inserted in as an extra layer of protection for cash dealings between Mr Suryakant Tiwari and Mrs Saumya Chaurasia. He used to transport cash from Mr Suryakant Tiwari to Mrs Saumya Chaurasia. ED investigation has established that Mrs Saumya Chaurasia and her family went on a spree of acquiring immovable assets during the period which coincided with the coal levy scam. These assets of which she is the real beneficial owner were identified and attached by issuance of provisional attachment orders(s) as detailed in succeeding paragraphs." 20. The evidence relating to strong relations between the appellant and Mr Suryakant Tiwari, between the appellant and Mr Manish Upadhyay, and between the appellant and Mr Anurag Chaurasia; the evidences of movement of funds acquired out of extortion syndicate run by Mr Suryakant Tiwari to Manish Upadhyay, proxy of the appellant; the utilisation of proceeds of crime and acquisition of properties by the appellant in the name of her mothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PMLA. 108. It is well settled, as reiterated by the Hon'ble Supreme Court in Vijay Madanlal Choudhary (Supra) and Manish Sisodia (Supra), that while the stringent twin conditions under Section 45 of the PMLA restrict the right to bail, they do not impose an absolute bar. The discretion of the Court in granting bail remains judicial and must be exercised in accordance with the settled legal principles. The governing principle that "bail is the rule, and jail is the exception" must be harmonized with the legislative mandate that requires satisfaction of the conditions laid down under Section 45 of the PMLA before bail can be granted. 109. In the present case, the respondent has placed on record material indicating the applicant's active involvement in the procurement and sale of spurious anti-cancer medicines, the proceeds of which were funneled through various channels, including formal banking and hawala transactions. The grounds of arrest, along with financial records and electronic evidence, establish a prima facie case of money laundering. The applicant's role in the laundering of illicit proceeds stands corroborated by the investigative findings, including statements under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleased on bail. Given the nature of offences under the PMLA, which often involve complex financial transactions and cross-border elements, the potential for absconding is a significant concern. Second, whether the accused, if released, is likely to influence witnesses or tamper with evidence. In money laundering cases, where the trail of proceeds of crime is intricate and dependent on multiple records and statements, the possibility of interference with ongoing investigations remains high, and third, whether there is a reasonable apprehension that the accused may indulge in similar offences if granted bail, thereby prejudicing the ongoing investigation and endangering public interest. 116. In Satender Kumar Antil v. CBI, (2022) 10 SCC 51, the Hon'ble Supreme Court has held that while granting bail, the gravity of the allegations must be taken into account. 117. Applying the aforementioned principle to the present case, this Court finds that the gravity of the allegations against the applicant is of a serious nature, involving the alleged laundering of proceeds derived from the sale of spurious anti-cancer medicines. The offence not only entails significant financial implications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, rather he has been charged for supplying and selling of spurious life saving anti-cancer medicines and that he is part of an established crime syndicate. This factual position does not satisfy the consciousness of this Court and there are considerable reasons to believe that there is likelihood that the applicant might commit offence while on bail as the applicant does not have clean criminal antecedents. Thus, the said argument stands rejected. 125. Having dealt with all the issues, this Court is of the view that considering the filing of the first supplementary prosecution complaint and the ongoing nature of the investigation, it is not satisfied that the applicant has fulfilled the twin conditions under Section 45 of the PMLA. The respondent has presented sufficient material to warrant further investigation, including financial records, electronic evidence, and statements of co-accused implicating the applicant. These materials suggest an active involvement in laundering proceeds of crime and a pattern of financial transactions that need further investigation. 126. The ongoing investigation is an extensive and meticulous effort by the investigating agency to unearth a broad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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