Accused Denied Bail under PMLA Section 45 Due to Economic Offence Severity

Directorate of Enforcement Versus Amarendra Dhari Singh

Directorate of Enforcement Versus Amarendra Dhari Singh - TMI Issues Involved:
1. Applicability of twin conditions under Section 45 of the Prevention of Money Laundering Act (PMLA) for bail.
2. Consideration of bail based on general provisions if twin conditions are deemed inapplicable.
3. Bail under proviso to Section 45 of PMLA due to the accused's health condition.
4. Accusations against the accused and the severity of the alleged economic offence.
5. Risk of tampering with evidence and influencing witnesses.
6. Stage of investigation and its impact on bail decision.

Detailed Analysis:

1. Applicability of Twin Conditions under Section 45 of PMLA:
The primary issue addressed was whether the twin conditions under Section 45 of PMLA should be applied in this case. The court noted that the Supreme Court in *Nikesh Tarachand Shah vs. Union of India* had declared the twin conditions unconstitutional. However, post-amendment, Section 45 of PMLA now applies these conditions to every offence under PMLA. Despite divergent views from various High Courts, the Supreme Court has stayed judgments that found the twin conditions inapplicable. Therefore, the court concluded that the twin conditions must be applied in this case.

2. Consideration of Bail Based on General Provisions:
Even if the twin conditions were not applied, the court considered the general provisions governing bail. The court emphasized factors such as the nature of the accusation, severity of the offence, risk of tampering with evidence, and likelihood of the accused fleeing from justice. Given the gravity of the allegations involving money laundering of around Rs. 685 crores, the court found the accusations serious enough to deny bail.

3. Bail under Proviso to Section 45 of PMLA Due to Health Condition:
The accused sought bail under the proviso to Section 45 of PMLA, citing his health conditions, including lymphatic cancer and heart ailments. The court examined medical records and found that the malignancy was controlled and no serious cardiac issues required constant medical supervision. The accused's frequent foreign travels for health, business, and leisure further indicated that his health conditions were manageable. Thus, the court concluded that the accused did not qualify for bail under the proviso for being sick and infirm.

4. Accusations Against the Accused and Severity of the Alleged Economic Offence:
The court detailed the allegations, including the fraudulent import of fertilizers at inflated prices, illegal commission transfers, and money laundering through a complex web of companies. The accused was implicated in channeling illegal funds and causing significant loss to the public exchequer. The court highlighted the Supreme Court's stance that economic offences should be viewed seriously due to their impact on the economy.

5. Risk of Tampering with Evidence and Influencing Witnesses:
Given the accused's influential position as a Rajya Sabha MP and a member of the Parliamentary Standing Committee of Fertilizers, the court found a reasonable apprehension that he could tamper with evidence or influence witnesses. Statements from witnesses and the ongoing investigation supported this concern.

6. Stage of Investigation and Its Impact on Bail Decision:
The investigation was at an initial stage, focusing on identifying the proceeds of crime and tracing the money trail. The court emphasized that releasing the accused on bail could hamper the investigation, given the complexity of money laundering cases involving multiple entities and jurisdictions.

Conclusion:
The court dismissed the bail application, applying the twin conditions under Section 45 of PMLA and considering the serious nature of the economic offence, potential for tampering with evidence, and the initial stage of the investigation. The accused's health conditions were deemed manageable, and his influential position posed a risk to the integrity of the investigation.