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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 ..... ith the documentary evidence including the Whatsapp chats etc. which shows the financial trail of the proceeds of crime in the instant matter. The same goes to show that the respondent ED has corroborating evidence on its record to justify the implication of the applicant herein - This Court is satisfied that the respondent ED has considered independent material, including financial records, digital evidence, and the applicant's own communications, which substantiate the applicant's involvement in the alleged offence. Whether the statements recorded under this provision are admissible as evidence and to what extent they can be relied upon to justify the applicant's arrest and continued detention? - HELD THAT:- The statements recorded under Section 50 of the PMLA hold evidentiary value and are admissible in legal proceedings. The Hon'ble Supreme Court in Rohit Tandon v. Directorate of Enforcement [2017 (11) TMI 779 - SUPREME COURT], while emphasizing the legal sanctity of such statements, observed that they constitute valid material upon which reliance can be placed to sustain allegations under the PMLA - this Court is of the considered view that statements recorded under Section 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence on record, the ongoing nature of the investigation, and the applicant's alleged role in the broader financial and selling of spurious medicines syndicate indicate that the rigors of Section 45 of the PMLA continue to apply. 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. Conclusion - i) The applicant's arrest complied with the statutory requirements under Section 19 of the PMLA, supported by concrete evidence rather than mere suspicion. ii) Statements recorded under Section 50 of the PMLA are admissible as evidence and can be relied upon to establish culpability in money laundering cases. iii) The applicant was not exempt from the twin c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Units, DLF Capital Greens, Moti Nagar, New Delhi, the accused persons were allegedly caught in the act of filling empty vials with unauthorized substances and packaging them using specialized machinery. The police seized a substantial quantity of raw materials, counterfeit vials, packaging equipment etc. 5. It is stated that the applicant herein was allegedly in contact with the primary accused since the year 2020 and is accused of purchasing spurious anti-cancer injections from the co-accused Neeraj Chauhan without proper billing and documentation. It is further alleged that the applicant knowingly facilitated the sale of these counterfeit drugs, generating proceeds of crime amounting to Rs. 7,45,000/- which were allegedly deposited in various bank accounts. 6. Based on the FIR, the Directorate of Enforcement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission. 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 against the applicant is entirely based on the statements of the co-accused persons recorded under Section 50 of the PMLA post their arrest. These statements are inadmissible in evidence, being obtained under coercive custody and hit by Article 20 (2) of the Constitution of India, as affirmed by the Hon'ble Supreme Court in Pavana Dibbur v. Directorate of Enforcement, 2023 SCC OnLine SC 1586. Further, there exists no independent evidence to corroborate these statements, and as such, the prosecution cannot rely solely on these statements to indicate the applicant's alleged role in the offence. 12. It is submitted that any purchase of anti-cancer drugs, if made, was under a bona fide belief that they were genuine and procured through legitimate banking channels. The applicant paid Rs. 1.20 Lakhs per vial, which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut 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 only, rather than general penal provisions. 17. It is submitted that the applicant's father is suffering from Grade IV carcinogenic brain tumor, and the applicant has been previously granted interim bail to attend to his ailing father. His grandfather, aged 94, is also suffering from severe medical conditions. The Hon'ble Supreme Court has consistently held that humanitarian considerations should be taken into account while considering bail, as reiterated in Manish Sisodia v. Enforcement Directorate, 2024 SCC OnLine SC 2274. 18. In light of the above submissions, it is prayed that the instant application may be allowed and the reliefs be granted as prayed for. 19. Per Contra, learned counsel appearing on behalf of respondent-ED vehemently opposed the instant application submitting to the effect that the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rolled 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 from the investigation of the predicate offence. It is not necessary for an individual to be named as an accused in the predicate offence to be prosecuted under the PMLA. The applicant's involvement in handling, concealing, and using the proceeds of crime makes him liable under the PMLA, regardless of his role in the scheduled offence. 27. It is submitted that the applicant's arrest was carried out in compliance with Section 19 of the PMLA, which mandates that "reasons to believe" for the arrest must be recorded in writing and communicated to the adjudicating authority. In the present case, the arrest was based on concrete material, and the applicant was duly informed with the grounds of arrest on 22nd May, 2024. Furthermore, the learned Special Court, after being fully satisfied with the material on record, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality 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 material available on record including the compilation of judgments, written submissions and reply to the same. 35. In light of the submissions made before this Court, it is made out that the grounds contended by the applicant for grant of bail are multifold. Firstly, it has been contended that the applicant's arrest was not conducted in compliance with the provisions of Section 19 of the PMLA which requires 'reasons to believe' before making an arrest. Secondly, the statements made by co-accused Viphil Jain, Neeraj Chauhan and Tushar Chauhan under Section 50 of the PMLA form the sole basis for the applicant's arrest which is not sufficient to justify the applicant's arrest. Lastly, the applicant is exempted from the twin conditions of bail under Section 45 of the PMLA. However, even if it is assumed for the sake of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 person so arrested should be 'informed of the grounds of arrest'. 40. The compliance of these conditions is undoubtedly mandatory, which is also fortified by the explanation added to Section 45 of the PMLA, which provides as under: "Section 45. Offences to be cognizable and non-bailable. *** 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 reiterating the principles laid down in case of Vijay Madanlal Choudhary (Supra) has made the following observations on the scope of Section 19 of PMLA: "17. At this stage, it would be apposite to consider the case law that does have relevance to these appeals and the issues under consideration. In Vijay Madanlal Choudhary [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1 : 2022 SCC OnLine SC 929 : (2022) 10 Scale 577] , a three-Judge Bench of this Court observed that Section 65 PMLA predicates that the provisions of the Code of Criminal Procedure, 1973, shall apply insofar as they are not inconsistent with the provisions of PMLA in respect of arrest, search and seizure, attachment, confiscation, investigation, prosecution and all other proceedings thereunder. It was noted that Section 19 PMLA pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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/Neeraj Cha/HDFC0000557, 200000 21-02-2023 MMT/IMPS/305222805742/NA/Neeraj Cha/HDFC0000557, 100000 03-03-2023 MMT/IMPS/306218322760/NA/Neeraj Cha/HDFC0000557, 100000 15-11-2023 MMT/IMPS/331914727415/NA 526122512/Neeraj Cha/HDFC,0000557 100000 01-02-2024 MMT/IMPS/403214488969/NA526122512/Neeraj Cha/HDFC,0000557 100000 01-02-2024 BIL/NEFT/HS92403231593662/NA/Neeraj Cha/HDFC000055,7 100000 09-03-2024 MMT/IMPS/406914883663/Neeraj Cha/HDFC0000557, 360000 TOTAL 12,97,500/ Further, it is also noticed that an amount of Rs. 42,98,000/- was transferred to the bank account of Tushar Chauhan as mentioned below: Further, it is also evident that an amount of Rs. 30,03,500/- was transferred to the bank account of Viphil Jain as mentioned below: Further, Lovee Narula in his statement reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent 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-cancer medicine i.e Opdyta Injection from Viphil Jain at an average price of Rs. 52,500/- per vial and further sold the same in open market with an average profit of Rs. 5,000/- per vial. He further stated that payments for purchase of spurious anti-cancer medicine i.e Opdyta Injection from Viphil Jain were made in the bank account of Viphil Jain. Further an amount of Rs.30,03,500/- were transferred to the bank account of Viphil jain during 2022 and 2023. Therefore in total 57 vials of Opdyta Injection were purchased from Viphil Jain by Lovee Narula and the same were sold in open market thereby earning a profit of Rs. 2,85,000/-. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 drugs, making him culpable under Sections 3 and 4 of the PMLA for money laundering. 54. As per the record available, including the first supplementary prosecution complaint dated 20th July, 2024 and the ECIR, it is also observed by this Court that during the custodial interrogation, the applicant admitted to dealing in Keytruda and Opdyta injections without invoices/bills, sourcing the same from Neeraj Chauhan and Tushar Chauhan to reduce costs and increase profits, instead of using authorized dealers. 55. The financial records indicate substantial money transfers among the applicant herein and the co-accused's accounts as well as other known associates involved in the counterfeit medicine syndicate. These transactions, along with the applicant's control over the business operations, substantiate the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 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 he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under this Act. (3) All the persons so summoned shall be bound to attend in person or through authorised agents, as such officer may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required. (4) Every proceeding under sub-sections (2) and (3) shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). (5) Subject to any rules made in this behalf by the Central Government, any officer referred to in sub-section (2) may impound and retain in his custody for such period, as he thinks fit, any records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 information given or otherwise appears to be acquainted with the facts and circumstances of the case, whereas, the process envisaged by Section 50 PMLA is in the nature of an inquiry against the proceeds of crime and is not "investigation" in strict sense of the term for initiating prosecution; and the authorities referred to in Section 48 PMLA are not the police officers as held in Vijay Madanlal [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1] . 22. It has been specifically laid down in the said decision that the statements recorded by the authorities under Section 50 PMLA are not hit by Article 20(3) or Article 21 of the Constitution, rather such statements recorded by the authority in the course of inquiry are deemed to be the judicial proceedings in terms of Section 50 (4), and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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. In the present case, as observed in the preceding paragraphs, the reliance placed by the investigating agency is not only on the statement of co-accused recorded under Section 50 of the PMLA but also on the financial records, WhatsApp chats etc., which indicate the applicant's active role in the alleged money laundering activities along with the other co-accused. 72. By virtue of Section 24 of the PMLA, the respondent is not required to conclusively establish the applicant's guilt at the pre-trial stage, rather, the applicant must demonstrate that the proceeds of crime attributed to him are not linked to money laundering. In the absence of any rebuttal by the applicant, the presumption under Section 24 of the PMLA stands in favor of the respondent, thereby, justifying his continued detention. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess 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" is not conclusive. It also does not follow that the legal presumption that the proceeds of crime are involved in money-laundering is to be invoked by the authority or the court, without providing an opportunity to the person to rebut the same by leading evidence within his personal knowledge [Sarbananda Sonowal v. Union of India, (2005) 5 SCC 665]. 240. Such onus also flows from the purport of Section 106 of the Evidence Act. Whereby, he must rebut the legal presumption in the manner he chooses to do and as is permissible in law, including by replying under Section 313 of the 1973 Code or even by cross-examining prosecution witnesses. The person would get enough opportunity in the proceeding before the authority or the court, as the case may be. He may be able to discharge his burden by showing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Aditya Krishna, Akshay Kumar, Neeraj Chauhan, Keshav Anand, Sneha and others. iii. He procured empty vials of Keytruda from Pravez Khan and Neeraj Chauhan for making fake/spurious anticancer medicines and after preparing such spurious anticancer medicines, he used to sell the same in open market through Aditya Krishna and some other persons; iv. Suraj Shat had arranged machines for preparing anticancer medicines and that he had paid money for the purchase of such machines to Suraj Shat. Further, he also stated that he had gone to Mumbai for purchasing caps for capping the spurious anti-cancer medicines in the month of October, 2023. v. He used to get original empty vials of anti-cancer medicines (Keytruda) from Neeraj Chauhan and Pravez Khan. He and Suraj Shat also used to paste the label of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines 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 medicines without any bill and invoice to M/s Delhi Medicine Hub mostly in cash. However, some balance funds were received in his bank account. As such, M/s Kesha Enterprises also paid the balance amount in the bank account of his son Sanyam Jain. xii. He had received funds of Rs. 11.40 lacs from M/s Delhi Medicine Hub (Akshay Kumar) Rs. 95,000/- from M/s Cancer Medicine (Akshay Kumar) in the bank account number 1338104000051484 Rs. 24.46 lacs from Aditya Krishna Rs. 7.55 lacs from M/s Popular Medicine Specialties Rs. 13.00 lacs from Suraj Shat in the bank account of his wife Deepali Jain, which was nothing but the sale proceeds of spurious/ fake anti-cancer medicines. xiii. He admitted that cash deposited in the bank account of his family members and himself are nothing but the sal proceeds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fe 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 of various anti-cancer medicines and supply the same to Viphil Jain. Further, he disclosed that he has financial transactions with Viphil Jain in respect of dealing of spurious anti-cancer medicine. iii. That he knew Akshay Kumar, partner in M/s Delhi Medicine Hub, Chandigarh. He came in contact with Akshay Kuma through India Mart online application in respect of dealing & distribution of anti-cancer medicines. He also stated that h used to purchase anti-cancer medicines from Viphil Jain, Rohit Bist, Mazid Khan, Jitendra and sell the same to M/s Delhi Medicine Hub (through Akshay Kumar & Rajesh Kumar), Mr. Lovee Narula, Aditya Krishna, Gagan Khurana, Mehtab and some more persons. He sold spurious anti-cancer medicines to M/s Delhi medicine Hub, Chandigarh without bills and received funds in his acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 anti-cancer medicines . xi. That, he stocked huge quantity of empty vials and boxes of anti-cancer medicines in his home, which were recovered during Crime Branch search operation, when he was asked reason for the same, he stated that he started collecting empty vials/ boxes of anti-cancer medicines for supplying them to Viphil Jain. Neeraj Chauhan was associated with the medical field from 2009 and he was aware about the proper disposal of the empty vials/ boxes of life saving drugs, however when he was asked to explain the reason for not disposing the same, he could not answer. xii. That, whats app chat related to the sale purchase of anti-cancer medicines between Akshay Chandigarh (Akshay Kumar, Delhi Medicine Hub) was shown to Neeraj Chauhan, he confirmed the same. He also stated that he used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec-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 therefore M/s Mamta Enterprises at Gurugram was opened in July 2023. He also stated that all medicines were sold from M/s Mamta Enterprises were billed and invoices were generated. xix. That, he stated that he met Gagan Khurana through Online Portal India mart. Gagan Khurana is in contact with him through his cousin brother Tushar Chauhan and on Gagan's request, he supplied the filled vials of Keytruda to Gagan Khurana. *** 5.6 Lovee Narula S/o Shri Vijay Narula-Statements ofLovee Narula S/o Shri Vijay Narula Rio G-133. 2nd Floor. LIC Colony. Paschim Vihar. New Delhi-110063 were recorded on 05.04.2024. 23.05.20241 24.05.2024. 25.05.2024. 26.05.2024 and 27.05.2024 under section 50 of the PMLA. 2002 : (RUD-49) Statement of Lovee Narula was recorded on 05.04.2024, wherein he undertook that he will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was shown account statement of Account No 194401500829 maintained with ICICI Bank containing transactions with Viphil Jain, wherein he stated that he used to purchase spurious Opdyta injection from him without any bill or tax invoice. Further, he stated that the said anticancer medicines purchased from Viphil Jain were further sold to the patients in need. ix. He was shown account statement of Account No 194401500829 maintained with ICICI Bank containing transaction details with Neeraj Chauhan, wherein he stated that he used to purchase Keytruda vials from Neeraj Chauhan and as per direction of Neeraj Chauhan for an amount of Rs. 1,20,000/- per vials and had transferred the purchase amount to the tune of Rs. 12,97,500/- of the said spurious anti-cancer Keytruda vials in the account of Neeraj Chauh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 from him. xvii. He usually imported Keytruda from abroad for his regular patients. However in case of any new patient's case to him, he purchased Keytruda Injection from Neeraj Chauhan and Tushar Chauhan because it costed less to him than to purchase it from the authorized dealer of Keytruda Injection. xviii. He purchased Opdyta 40 mg injection vials from Viphil Jain. He further stated that even after knowing the fact that Viphil Jain was not authorized dealer of Opdyta 40 mg injection, he purchased the Opdyta 40 mg injection from Viphil Jain as Opdyta 40 mg injection was not readily available in the open market at that time. xix. He purchased anti-cancer medicines from Viphil Jain and Neeraj Chauhan and sold the same to various entities and person in open market. He stated that he is unabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 anticancer medicines and Neeraj Chauhan also told that they i.e. Neeraj Chauhan and Tushar Chauhan used to purchase anti-cancer medicines from Viphil Jain without bill and in cash. Therefore, as suggested by Neeraj Chauhan he used to receive anti-cancer medicines from Viphil Jain and supplied the same to the buyers of Neeraj Chauhan. He stated that Viphil Jain never gave any bill to Neeraj Chauhan and Neeraj Chauhan never gave any bill to buyers of anti-cancer medicines. vi. Neeraj Chauhan further stated that he used to receive anti-cancer medicines from Viphil Jain at his rented house at 1412, Tower-4, DLF Capital Green, Delhi where he used to meet Viphil Jain and Suraj Shat at the said house. Suraj Shat alias Golu told him that Viphil Jain had given strict instruction to Suraj Shat to not allow an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 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 vials of Keytruda procured from Majid, Rohit Singh Bisht, Viphil Jain with empty boxes and provided the same to him for further supply to the customer ofNeeraj Chauhan. Tushar Chauhan saw empty boxes and empty vials of various anti-cancer medicines at the house ofNeeraj Chauhan. xvi. he stated that Neeraj Chauhan used to sell anti-cancer medicines including Keytruda Injection without bill to foreign based patients in foreign currency also. xvii. Neeraj Chauhan used to pack filled Keytruda vials received from Viphil Jain and others, in the empty boxes of Keytruda injection, after matching their expiry date and batch number. Thereafter, Neeraj Chauhan used to give the said Keytruda vials to him for further supply of the same. xviii. he stated that quality of medicines were compromised because Neer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Viphil Jain for the purchase of spurious anti-cancer medicines. Other than the above transactions, the applicant further admitted to having transferred Rs. 1,20,000/- to the account of Neeraj Chauhan and Rs. 12,97,500/- to the account of Tushar Chauhan. 79. The aforesaid observation reveals that the applicant had knowledge that Viphil Jain, Tushar Chauhan and Neeraj Chauhan are not the authorized dealers. 80. Furthermore, the gist of statements given by Viphil Jian, Neeraj Chauhan and Tushar Chauhan affirm to the facts and circumstances admitted by the applicant with regard to several financial transactions, sale and purchase of spurious anti-cancer medicines and laundering of money through hawala channels. 81. The aforesaid basis of arrest specifically highlight the flow of funds from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cannot seek parity with respect to other persons while seeking bail and thus, this Court does not find any merit in the said submission which stands rejected. 88. In view of the foregoing analysis, this Court finds that the applicant's arrest was conducted in compliance with the statutory mandate of Section 19 of the PMLA. 89. Moving further, it has been argued on behalf of the applicant that the applicant is exempted from the twin conditions of bail under Section 45 of the PMLA. However, even if it is assumed for the sake of arguments that he is not exempted under the proviso, the applicant satisfies the twin conditions prescribed under the aforesaid provision. 90. In order to adjudicate the instant issue, this Court shall first peruse the text of Section 45 of the PMLA, which lays down the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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. A careful reading of the provision reveals the following essential ingredients that must be satisfied before bail is granted. 92. Firstly, Section 45(1) of the PMLA mandates that no person accused of an offence under the PMLA shall be released on bail or on his own bond unless two cumulative conditions are satisfied:(i) the Public Prosecutor must be given an opportunity to oppose the bail application; and (ii) if the Public Prosecutor opposes the application, the Court must be satisfied that there are reasonable grounds for believing that the accused is not guilty of the offence and is not likely to commit any offence while on bail. 93. Secondly, Section 45(2) of the PMLA provides that the limitations on the grant of bail under sub-section (1) are in addition to the limitations im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ick 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 Government or a State Government authorised in writing in this behalf by the Central Government by a general or special order made in this behalf by that Government." 11. In Vijay Madanlal Choudhary v. Union of India [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1] , this Court categorically held that while Section 45 PMLA restricts the right of the accused to grant of bail, it could not be said that the conditions provided under Section 45 impose absolute restraint on the grant of bail. Para 302 is extracted hereinbelow : (SCC p. 259) "302. It is important to note that the twin conditions provided under Section 45 of the 2002 Act, though restrict the right of the accused to grant of bail, but it cannot be said that the conditions provided under Section 45 impose absol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ma 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 on probability on the basis of reasonable material collected during investigation. The words used in Section 45 are "reasonable grounds for believing" which means that the court has to see only if there is a genuine case against the accused and the prosecution is not required to prove the charge beyond reasonable doubt." 97. Having considered the legislative intent behind Section 45 of the PMLA and the judicial precedents interpreting its application, this Court shall now proceed to apply the established principles to the facts of the present case to assess whether the applicant has successfully satisfied this Court that he falls under the proviso to Section 45 of the PMLA and if not, whether he has discharged the burden of proving that he is not guilty of the alleged offenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and was working as an OSD to CM. Despite being relatively very junior in the bureaucratic hierarchy, she enjoyed unprecedented power and control because of her direct access to higher political powers. Information shared by the Income Tax Department and analysis of documents and digital devices seized during the searches conducted under Section 17 PMLA, 2002 revealed that Smt Saumya Chaurasia, Deputy Secretary working in the Chief Minister's Office, is one of the key persons in creation of the syndicate headed by Shri Suryakant Tiwari. An extortion racket of this magnitude and nature was possible only when multiple State agencies fell in place and everyone supported the illegal acts of Suryakant Tiwari. This was made possible by Saumya Chaurasia so that pliant officers w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 mother Shanti Devi and cousin Mr Anurag Chaurasia along with the details of the said properties, etc. have been detailed in the said prosecution complaint, which leave no doubt in the mind of the Court that prima facie the appellant has been found involved in the commission of the offence of money laundering as defined in Section 3 of the said Act. 21. The next question that falls for consideration before the Court is whether the appellant being a woman should be granted the benefit of the first proviso to Section 45 PMLA, which reads as under: "45. Offences to be cognizable and non-bailable.--(1) * * * 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-l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Section 50 of the PMLA and independent documentary evidence. 110. The applicant has failed to discharge the burden placed upon him under Section 45(1)(ii) of the PMLA which requires him to that there are reasonable grounds for believing that he is not guilty of the offence. The material produced by the respondent, including financial transactions linked to the proceeds of crime and the applicant's own admissions, points to his direct and active involvement in the offence. Mere assertions that the applicant was a passive investor and was unaware of the illegality of the transactions do not satisfy the threshold required to overcome the presumption under the PMLA. 111. Further, the second limb of Section 45(1)(ii) of the PMLA, which mandates that the applicant must sati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 but also poses a grave risk to public health and safety. 118. As observed in the foregoing paragraphs, but not being repeated for the sake of brevity, the applicant in the present case is alleged to have played an active role in the procurement, distribution, and financial management of the illicit business. 119. The evidence on record, including financial transactions and digital communications, suggests a well-orchestrated operation which demands a higher threshold of investigation before granting bail. The investigating agency has highlighted the potential risk of the applicant tampering with the evidence and influencing witnesses, thereby, affecting the integrity of the ongoing investigation. 120. In the present case, the applicant has failed to demonstrate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cient 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 broader nexus of financial misconduct and uncover deeper layers of the offence alleged herein. As new evidence continues to emerge, it may further solidify the allegations against the applicant. The complexity of the financial trail and its potential societal and national ramifications require continued custodial interrogation and thus, this Court does not find any merit in the instant bail application. 127. In light of the above discussions on facts and law, it is held that the applicant has been unable to put forth any propositions before this Court that are sufficient for grant of bail and thus, the same are rejected. In view of the same, this Court is not inclined to release the applicant on bail and the instant application, is, hereby, dismissed along with the pendin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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