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TMI Blog2025 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ute valid material upon which reliance can be placed to sustain allegations under the PMLA. In a recent judgment, the Hon'ble Supreme Court in Abhishek Banerjee v. Enforcement Directorate [2024 (9) TMI 508 - SUPREME COURT] held that '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 admissible in evidence, whereas the statements made by any person to a police officer in the course of an investigation under Ch. XII of the Code could not be used for any purpose, except for the purpose stated in the proviso to Section 162 of the Code.' The Hon'ble Supreme Court in the aforementioned judgment underscored that such statements, being recorded in the course of an inquiry rather than an investigation, are not subject to the restrictions under Article 20 (3) and Article 21 of the Constitution. Instead, they are deemed to be judicial proceedings under Section 50(4) of the PMLA and, therefore, ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied not only on the statement of co-accused under Section 50 of the PMLA but also on financial records, WhatsApp communications, and transactional data, which indicate the applicant's active role in the alleged money laundering activities. 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. In the present case, the respondent has placed on record material indicating that the applicant actively participated in procurement and sale of spurious anti-cancer medicines. The investigation has revealed that the applicant engaged in financial transactions involving the proceeds of crime, including payments made through banking channels and hawala transactions - Applying the legal presumption under Section 24(a) of the PMLA, once the respondent has demonstrated these foundational facts, the onus shifts to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. Based on the FIR, the respondent ED initiated ECIR/DLZO-II/03/2024 dated 16th March, 2024 under Sections 3 and 4 of the PMLA. The applicant was initially included as a witness in the investigation, however, following further investigation, he was named as accused No. 9 in the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence in the case is primarily documentary in nature and is already in police custody, thereby significantly reducing the possibility of tampering with evidence or influencing witnesses. The applicant submits that since the present case under the PMLA arises from the same predicate offence, the reasoning applied in the previous bail order should be extended to the present matter. 14. It is submitted that no spurious medicines, vials or incriminating materials have been recovered from the applicant. His arrest is based solely on the disclosure statements of co-accused persons, which as per the Hon'ble Supreme Court's decision in Prem Prakash v. Enforcement Directorate, (2024) 9 SCC 787, do not constitute substantive evidence. It is submitted that the Hon'ble Court has categorically held that statements of co-accused, without corroborative evidence, cannot form the basis of prosecution under PMLA. 15. It is submitted that the allegations in FIR No. 59/2024, which form the foundation of the present ECIR, are contradictory to those made in the predicate offence case (FIR). It is submitted that the co-accused Suraj Shat's statement in the present case is "Aditya Krishna gave him Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged amount involved falls below the said threshold, thereby making the applicant eligible for the benefit under the statutory provision. 20. It is submitted that the established principle that bail is the rule and jail is an exception, as reiterated by the Hon'ble Supreme Court in multiple judgments including Manish Sisodia v. Enforcement Directorate, 2024 SCC OnLine SC 1920. The applicant has been in custody for a substantial period and continued detention would amount to pre-trial punishment, violating the applicant's fundamental right under Article 21 of the Constitution of India. 21. It is submitted that considering the voluminous nature of documents and the complexity of the case, the trial is likely to be protracted. It is submitted that the prolonged incarceration without a conclusive determination of guilt would amount to a violation of the applicant's right to a speedy trial and personal liberty. 22. In light of the above submissions, it is prayed that the instant application may be allowed and the reliefs be granted as prayed for. 23. Per Contra, learned counsel appearing on behalf of respondent vehemently opposed the instant application submitting to the effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involvement clearly indicates his direct role in the perpetuation of the crime. 28. It is submitted that the learned Special Judge has rightly rejected the applicant's bail application after considering the severity of the allegations and the potential risk of evidence tampering and witness intimidation. It is submitted that the trial court correctly concluded that the applicant failed to satisfy the twin conditions under Section 45 of the PMLA, and that his release would compromise the integrity of the ongoing investigation. It is submitted that the learned Special Judge's order is well-founded and consistent with the legislative intent to curb organized economic offences. Reliance in this regard has been placed on the judgments of the Hon'ble Supreme Court such as Vijay Madanlal Chaudhary v. Union of India, (2023) 12 SCC 1, and Tarun Kumar v. Enforcement Directorate, 2023 SCC OnLine SC 1486, wherein, the Hon'ble Court upheld the constitutional validity of Section 45 of the PMLA and held that the twin conditions must be strictly satisfied for the grant of bail. It is submitted that it has been affirmed in the above judgements that the conditions specified under Section 45 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the grounds contended by the applicant for grant of bail are multi-fold. Firstly, the alleged amount involved falls below Rs. 1 Crore, making the applicant eligible for the benefit of the statutory proviso that allows discretion in granting bail. Secondly, it has been contended that even if it is assumed for the sake of argument that the proviso is not applicable to him, the applicant has satisfied the twin mandatory conditions under Section 45 of the PMLA, i.e., whether there are reasonable grounds to believe that he is not guilty of the offence and whether he is unlikely to commit any offence while on bail. Lastly, the statutory presumption of guilt under Section 24 of the PMLA applies in the present case and in view of the same, whether the applicant has successfully rebutted this presumption. 36. This Court shall now proceed to examine the present matter. 37. It is a settled position of law that statements recorded under Section 50 of the PMLA hold evidentiary value and are admissible in legal proceedings. The Hon'ble Supreme Court, while emphasizing the legal sanctity of such statements, has time and again observed that they constitute valid material upon which reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amine the prosecution complaint, statements of the applicant and co-accused persons alongwith the relevant bank statements. 40. Accordingly, this Court has referred to the statement of the co-accused persons, relevant extracts of which are as under: "Statement of Sh. Suraj Shat recorded under Section 50 of the PMLA reads as: iv. He disclosed that he had purchased two Cap Sealing Machine "Vial Cap Sealing Machine" in his name; one for 49 Page 42 of 140 the purpose of re-capping of vials of Keytruda anti-cancer medicines and another for the purpose of re-capping of vials of Opdyta anti-cancer medicine on instruction of Aditya Krishna as Aditya Krishna was also engaged in the preparation and distribution of spurious anti-cancer medicines. v. He was employed by Viphil Jain for a salary of Rs. 30,000/- per month in cash; that his bank accounts were used by Viphil Jain to layer sale proceeds of spurious anticancer medicines. He had also received funds in his bank account from Aditya Krishna for some medicines. He further transferred funds to various persons on instruction of Viphil Jain as well as Aditya Krishna. vi. Aditya Krishna used to purchase spurious anti-cancer medicines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that M/s Popular Medicines Specialty controlled by Aditya Krishna to whom Viphil Jain used to sell unsealed vials of spurious anti-cancer medicines. Sometimes, Viphil Jain used to sell these vials on credit to Aditya Krishna. He further stated that the funds received in his bank accounts from Aditya Krishna is nothing but the sale proceeds of these vials of spurious anti-cancer medicines sold without bill. On instruction of Viphil Jain, he received funds in his bank account and transferred it to the bank account numbers provided to him by Viphil Jain." *** "I used to supply Refilled Anti Cancer Injections in the market as per th instructions of Viphil Jain by contacting my acquaintance Aditya Krishna who lives in Mujaffarpur, Bihar. Aditya Krishna always booked the porter himself. Aditya Krishna used to get the goods delivered to Delhi Airport through the porter and then sell it further." Relevant part of the chargesheet which is Annexure P-13 reads as: "xvi. He, thereafter, started to buy anti-cancer medicines from Viphil Jain. He used to buy anti-cancer medicine viz. Keytruda, Perjetta, Opdita etc, however, mostly, he used to purchase Keytruda from Viphil Jain. Viphil J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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." Statement of Sh. Parvez Khan recorded under Section 50 of the PMLA reads as: "xi. That, Pravez Khan earlier stated in his statement that he neither knew Aditya Krishna nor he knew any person named Aditya Krishna before registration of FIR. He also stated that he does not have any business or financial transaction with Aditya Krishna. However, thereafter account statement of bank account number 191801502731 maintained in the name of Pravez Khan containing credit entries from Aditya Krishna was shown to him, then Pravez Khan replied that he asked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 030605010481 in the name of Aditya maintamed ICICI Bank Lmuted (RUD-34), it is revealed that Aditya Krishan deposited cash amount Rs. 25,90,000 from 09.05.2023 to 29.02.2024 details as below: Bank account No. 030605010481 of Aditya Krishna maintained with ICICI Bank Limited TABLE-20 Date Description Credit (Cash) 09-05-2023 CAM/02512SRY/CASH DEP-Other/09-05-23/8912 98000 09-05-2023 CAM/02512SRY/CASH DEP-Other/09-05-23/8914 67500 09-05-2023 CAM/02512SRY/CASH DEP-Other/09-05-23/8916 20500 22-05-2023 CAM/68011SRY/CASH DEP-Other/22-05-23/6013, 71000 22-05-2023 CAM/68011SRY/CASH DEP-Other/22-05-23/6015, 4000 23-05-2023 BY CASH-HYDERABAD SHAKER, 150000 25-05-2023 BY CASH -MUZZAFARPUR, 190000 29-05-2023 CAM 02512SRY/CASH DEP-Other29-05-23/1038, 87000 29-05-2023 CAM 02512SRY/CASH DEP-Other29-05-23/1040, 91000 02-06-2023 CAM 02512SRY/CASH DEP-Other02-06-23/1556, 99500 02-06-2023 CAM 02512SRY/CASH DEP-Other02-06-23/1558, 89500 12-06-2023 CAM/68012HHR/CASH DEP-Other/12-06-23/1586 75000 13-07-2023 CAM/68011SRY/CASH DEP-Other/13-07-23/9192 87000 24-07-2023 BY CASH - TONK CLOCK TOWER 87000 14-08-2023 CAM/68011SRY/CASH DEP-Other/14-08-23/865 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 24-05-2023 CAM/02512SRY/CASH DEP-Other/24-05-23 512, 99000 07-07-2023 BY CASH -NAGARCOIL 6095 ADITYA, 12000 10-08-2023 CAM/00011ARY/CASH DEP-Other/10-08-23 9978, 100000 13-09-2023 CAM/60952SRY/CASH DEP-Other/13-09-23/8059, 12000 22-02-2024 CAM/54241HRY/CASH DEP-Other/22-02-24/6988, 94500 22-02-2024 CAM/54241HRY/CASH DEP-Other/22-02-24/6990, 5500 22-02-2024 CAM/54241HRY/CASH DEP-Other/22-02-24/6992, 89500 Total (C) 7,42,500/- Total Cash Deposit: A+B+C = Rs. 51,34,500/- 6.20 During his custodial Interrogation, Aditya Krishna stated that he used to purchase Keytruda Injection from Viphil Jain and sold the same in open market thereby generating proceeds of crime. He further stated that the sale and purchase of the anti-cancer medicines were done in cash. Therefore, it is clearly established that the above said cash deposits in the bank accounts of Aditya Krishna are nothing but proceeds of crime generated out of the scheduled offence. Further, on scrutiny of bank accounts of Aditya Krishna, it is revealed that Aditya Krishna used to procure fake/spurious anti-cancer medicines from Viphil Jain and then sold the same m the open market to many persons/entiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shatsuraj-1@oka/Yes Bank Ltd./ICI3803739fb30d459985640a15c541b3 50000 Total 8,36,000 6.23 Further, Aditya Krishna his custodial Interrogation, admitted to have used the Hawala Channels to receive payments and make payments for the sale and purchase of anti-cancer medicines which remain unaccounted as the amount which was sent or received by Hawala Channel never came In the banking system. The whatsapp chat of Aditya Krishna which evidences that Aditya Krishna uses Hawala Channel for making and receiving payments is as below: 6.24 Further, Aditya Krishan transferred Rs. 80,000/- on 08.02.2024 his bank account No. 030605010481 maintained with ICICI Bank Limited to the account No. 016631100004793 of Suraj Shat maintained Yes Bank Limited for the purpose of purchase of two Flip of Cap Sealing Machine "Vial Cap Sealing Machine" through Suraj Shat for recapping the vials of fake/spurious anti-cancer medicines thereby utilizing the proceeds of crime received in his bank account for preparing more and more vials of fake/spurious anti-cancer medicines. Thereafter, on instruction of Aditya Krishna, Suraj Shat purchased two Flip of Cap Sealing Machine "Vial Cap Sealing Machine" from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secutor has been given a 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, 3[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. [(1A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), or any other provision of this Act, no police officer shall investigate into an offence under this Act unless specifically auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Special Court, to specific categories of persons, namely: (i) individuals below the age of sixteen years, (ii) women, (iii) persons who are sick or infirm, and iv) those accused, either alone or with others, of money laundering involving a sum of less than rupees one Crore. 47. Following a perusal of the statutory provision, it becomes imperative to examine the judicial pronouncements that have interpreted and applied Section 45 of the PMLA in various factual contexts. 48. The Hon'ble Supreme Court in Nikesh Tarachand Shah v. Union of India, (2018) 11 SCC 1 struck down the twin conditions as unconstitutional. However, the legislature subsequently amended the provision to cure the defects, and it has since been upheld in Vijay Madanlal Choudhary (Supra), reaffirming the strict nature of bail conditions under the PMLA. In Prem Prakash (Supra), the Hon'ble Supreme Court has also delved into the principles pertaining to bail in PMLA matters. The relevant paragraphs are as under: "…Section 45 PMLA -- Contours 10. Considering that the present is a bail application for the offence under Section 45 PMLA, the twin conditions mentioned thereof become relevant. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LA the governing principle is that "Bail is the Rule and Jail is the Exception". In para 52 of Manish Sisodia [Manish Sisodia v. Enforcement Directorate, (2024) 12 SCC 660 : 2024 SCC OnLine SC 1920], this Court observed as under: "52. … From our experience, we can say that it appears that the trial courts and the High Courts attempt to play safe in matters of grant of bail. The principle that bail is a rule and refusal is an exception is, at times, followed in breach. On account of non-grant of bail even in straightforward open-and-shut cases, this Court is flooded with huge number of bail petitions thereby adding to the huge pendency. It is high time that the trial courts and the High Courts should recognise the principle that "bail is rule and jail is exception." 12. All that Section 45 PMLA mentions is that certain conditions are to be satisfied. The principle that, "bail is the rule and jail is the exception" is only a paraphrasing of Article 21 of the Constitution of India, which states that no person shall be deprived of his life or personal liberty except according to the procedure established by law. Liberty of the individual is always a Rule and deprivation is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailed representation of the modus operandi of the accused persons in the form of a graphic illustration: 52. In Saumya Chaurasia v. Enforcement Directorate, (2024) 6 SCC 401, the Hon'ble Supreme Court has stated that the Courts should be mindful in keeping the evidence of movement of funds acquired out of the syndicate and utilization of the proceeds of crime to judge whether the individual is a part of the syndicate. The relevant part of the said precedent is herein below: "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 Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred to Saumya Chaurasia, spent on political funding and transferred as per the instructions 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 utilisatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by no stretch of imagination could such provision be construed as obligatory or mandatory in nature, otherwise all serious offences under such special Acts would be committed involving women and persons of tender age below 16 years. No doubt the courts need to be more sensitive and sympathetic towards the category of persons included in the first proviso to Section 45 and similar provisions in the other Acts, as the persons of tender age and women who are likely to be more vulnerable, may sometimes be misused by the unscrupulous elements and made scapegoats for committing such crimes, nonetheless, the courts also should not be oblivious to the fact that nowadays the educated and well placed women in the society engage themselves in the commercial ventures and enterprises, and advertently or inadvertently engage themselves in illegal activities. In essence, the courts should exercise the discretion judiciously using their prudence, while granting the benefit of the first proviso to Section 45 PMLA to the category of persons mentioned therein. The extent of involvement of the persons falling in such category in the alleged offences, the nature of evidence collected by the investigat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63. The applicant's admission of using hawala channels to facilitate unaccounted transactions raises concerns about the potential interference with the investigation and further commission of the offence while on bail. 64. At this stage, it is pertinent to note that the learned senior counsel for the applicant has also contended that the applicant has been released on bail in the predicate offence in FIR No. 59/2024 vide order dated 29th July, 2024 in Bail Appln No. 2236/2024 by the Coordinate Bench of this Court. 65. It has been submitted that the present PMLA proceedings against the applicant arises out of the schedule offence in the aforesaid FIR and since the petitioner has been released on regular bail in that case, the same ruling may be applied to the present case as well, and the applicant's present bail plea may be decided accordingly. 66. It is well settled that proceedings under the PMLA and the predicate offence registered under the IPC or other statutes are distinct in nature, scope, and purpose. The offence of money laundering under Section 3 of the PMLA is an independent offence that focuses on the process of disguising the illicit origin of funds and their integr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the judicial custody, the application was dismissed. It is to be noted that this decision was delivered on 16-3-2021, a few days before the Supreme Court in Vijay Madanlal Choudhary case offered further clarification contemplating three contingencies when the ECIR i.e. investigation under PMLA, came to an end. 80. In the wake of the above reading, we are satisfied that grievance of the petitioners do not deserve any consideration. Necessarily, the writ petitions filed by different accused, seeking similar relief cannot be entertained. Hence, the petitions are dismissed. In view of the dismissal of the writ petitions, pending interim applications also stand disposed off." 68. The grant of bail in the predicate offence, therefore, does not automatically entitle the applicant to bail under PMLA proceedings. Unlike general offences under the IPC, the PMLA imposes stringent twin conditions under Section 45 of the PMLA, which require the applicant to demonstrate that he is not guilty of money laundering and that he is unlikely to commit any offence while on bail. The distinction is further reinforced by the fact that the burden of proof under Section 24 of the PMLA shifts onto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are involved in money laundering unless the contrary is proven by the accused. 76. In the present case, the investigating agency has relied not only on the statement of co-accused under Section 50 of the PMLA but also on financial records, WhatsApp communications, and transactional data, which indicate the applicant's active role in the alleged money laundering activities. 77. 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. 78. The Hon'ble Supreme Court in Prem Prakash (Supra) has made the following observations: "In Vijay Madanlal Choudhary [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1] dealing with Section 24 PMLA, the three-Judge Bench held as under : (SCC pp. 229-31, paras 237 & 239-40) "237. Be that as it may, we may now proceed to decipher the purport of Section 24 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved 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 that he is not involved in any process or activity connected with the proceeds of crime. In any case, in terms of Section 114 of the Evidence Act, it is open to the court to presume the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct, and public and private business, in their relation to the facts of the particular case. Considering the above, the provision under consideration [Section 24(a)] by no standard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lish a valid 'reason to believe' that the applicant is guilty of the offence of money laundering. The procedural safeguards under the PMLA were duly followed, and the challenge to the legality of the arrest is without merit. 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 and rejected. 84. 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. 85. The ongoing investigation is an extensive and meticulous effort by the investigating agency to unearth a broader nexus of financial misconduct and uncover deeper la ..... 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