2015 (12) TMI 1601 - HC - Money Laundering

Court grants bail in hawala & betting case with conditions: bond, surrender passport, report, jurisdiction limits

The court granted bail to the applicant in a case involving allegations of involvement in a hawala racket and cricket betting. The court imposed specific ... Bail application - nature of offence - Prevention of Money Laundering - Held that:- As far as the allegations levelled against the present applicant are concerned, I have gone through the statement of the applicant himself. It appears that he was assisting his brother who was dealing with the cricket betting though he might be deciding or circulating the bhav (rate). The investigation is almost over and on completion of investigation, the present complaint has been filed by the authority. I have also considered the fact that the maximum punishment is of 7 years and, therefore, the case of the applicant can be considered by imposing certain conditions. The application is allowed and the applicant is ordered to be released on bail registered at the instance of the respondent No.2, on executing a bond of ₹ 1,00,000/- (Rupees One Lac only) with two local sureties of ₹ 50,000/- each to the satisfaction of the trial Court and subject to the conditions that he shall; [a] not take undue advantage of liberty or misuse liberty; [b] not act in a manner injuries to the interest of the prosecution; [c] surrender passport, if any, to the lower court within a week; [d] not leave State of Gujarat and Union territory of Delhi without prior permission of the Sessions Judge concerned; [e] mark presence with the respondent No.2 every Monday for a period of three months and thereafter on any day of the first week of each English Calendar month for a period of one year; [f] furnish the present address of residence to the I.O. and also to the Court at the time of execution of the bond and shall not change the residence without prior permission of this Court; The Authorities will release the applicant only if he is not required in connection with any other offence for the time being. If breach of any of the above conditions is committed, the Sessions Judge concerned will be free to issue warrant or take appropriate action in the matter. Bail bond to be executed before the lower court having jurisdiction to try the case. It will be open for the concerned Court to delete, modify and/or relax any of the above conditions in accordance with law. At the trial, the trial court shall not be influenced by the observations of preliminary nature, qua the evidence at this stage, made by this Court while enlarging the applicant on bail. Issues Involved:1. Application for regular bail under Section 439 of the Code of Criminal Procedure, 1973 read with Section 45 of the Prevention of Money Laundering Act, 2002.2. Allegations of involvement in a Hawala racket and cricket betting.3. Definition and applicability of 'proceeds of crime' under PMLA.4. Burden of proof under Section 24 of PMLA.5. Conditions for granting bail.Issue-Wise Detailed Analysis:1. Application for Regular Bail:The applicant sought regular bail under Section 439 of the Code of Criminal Procedure, 1973, read with Section 45 of the Prevention of Money Laundering Act, 2002 (PMLA). The application was filed in connection with ECIR No. - ECIR/03/AMZO/2015 [NOW PMLA Complaint No.8 of 2015] for offences punishable under Section 3 read with Section 4 of the PMLA and Section 120-B of the Indian Penal Code.2. Allegations of Involvement in Hawala Racket and Cricket Betting:The case arose from an FIR lodged on 25.3.2015, alleging that 16 persons were involved in a Hawala racket and cricket betting. The applicant was accused of providing Master Login IDs for the betting website 'BETFAIR.COM' without adhering to Know Your Client (KYC) norms. During a raid, various electronic gadgets and 147 mobile phones used for betting were seized. The applicant was arrested on 23.5.2015, and a complaint was filed under PMLA.3. Definition and Applicability of 'Proceeds of Crime' under PMLA:The applicant's counsel argued that the alleged amount derived from cricket betting does not fall under 'proceeds of crime' as defined under Section 2(u) of PMLA since betting is not a scheduled offence under Section 2(y) of the PMLA. The applicant was accused only of providing Master Login IDs, and no substantial evidence was presented to show the transfer of crores of rupees to foreign countries through these IDs.4. Burden of Proof under Section 24 of PMLA:The respondent's counsel argued that under Section 24 of PMLA, the burden of proof is on the accused to show that the money involved is untainted. However, the court noted that since the applicant is not facing any charge for a scheduled offence under Part A of the Schedule, Section 45(1) of the PMLA would not be prima facie applicable.5. Conditions for Granting Bail:Considering the maximum punishment under PMLA is seven years and the applicant's role in the alleged activities, the court decided to grant bail with specific conditions:- The applicant must execute a bond of Rs. 1,00,000 with two local sureties of Rs. 50,000 each.- The applicant must not misuse the liberty or act in a manner injurious to the prosecution.- The applicant must surrender his passport and not leave the State of Gujarat and Union territory of Delhi without prior permission.- The applicant must mark presence with the respondent No.2 on specified days for a period of one year.- The applicant must furnish his current address and not change it without prior permission.The court ordered the release of the applicant on bail, provided he is not required in connection with any other offence. The trial court was instructed not to be influenced by the preliminary observations made during the bail proceedings.Conclusion:The application for bail was allowed, and the applicant was ordered to be released on bail with specified conditions. The court refused the request for a stay on the implementation of the order.