2021 (4) TMI 1303 - DSC - Money Laundering

Court grants bail solely on medical grounds despite money laundering allegations.

Sachin Joshi Versus The Office of Enforcement of Directorate, Mumbai

The court granted bail to accused No.5 solely on medical grounds under Section 439 of Cr.P.C. r/w Section 45 of P.M.L. Act. Despite opposition from the ... Seeking grant of bail - bail sought on medical grounds under Section 45 of PMLA - diversion of proceeds of crime - HELD THAT:- The applicant is currently taking medicines for Asthama, anxiety, APD and Hematuria. It is also taken into consideration that, again cases of COVID-19 is surge and situation is looking grim. In such situation, even if the applicant/accused No.5 would send to the any hospital for tests or otherwise, it would be harm to his life due to contagious disease like COVID-19. Therefore, special care and medication to the applicant/accused No.5 is need of an hour, else it will came serious prejudice to the life and limb of the applicant/accsued No.5 - On this count itself, the provisions of Section 45 sub-section (ii) of PML Act is invoked, which provides that, “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, may be released on bail, if the special court so direct”. Furthermore, fleeing away from justice and/or fleeing away out of country, can be taken care by directing the applicant/accused No.5 to surrender his passport before ED immediately and not to leave India without prior permission of the Court. The question of tampering and hampering of prosecution evidence does not arise, as respondent/ED has tendered private complaint before this Court and accordingly, this Court has taken cognizance of it - applicant/accused No.5 can be released on bail only on medical grounds, without going into merits of the matter, by imposing following conditions as to avoid further unwarranted results for proper medical care and treatment of the applicant/accused No.5. The application is allowed subject to conditions imposed. Issues Involved:Bail application under Section 439 of Cr.P.C. r/w Section 45 of P.M.L. Act on medical grounds.Detailed Analysis:Issue 1: Bail Application on Medical GroundsThe applicant/accused No.5 moved a bail application under Section 439 of Cr.P.C. r/w Section 45 of P.M.L. Act, seeking release on medical grounds. The applicant argued that he was wrongly implicated in the case arising from a complaint against others. The defense emphasized the applicant's deteriorating health conditions and the need for specialized medical care due to various ailments. The applicant assured compliance with imposed conditions and highlighted his deep roots in society to dispel concerns of fleeing. The defense presented medical reports detailing the applicant's health issues, including Hematuria, burning sensation, and other ailments requiring specialized treatment.Issue 2: Prosecution's OppositionThe Enforcement Directorate (ED) opposed the bail application, citing the active role of the applicant in money laundering activities. The ED revealed findings of fund transfers amounting to Rs. 410 crores, involving the applicant's companies and indicating the integration of proceeds of crime with legitimate funds. The prosecution argued that the applicant directly participated in diverting proceeds of crime through inter-company transactions, emphasizing the non-genuine nature of the dealings. The ED expressed concerns about tampering with evidence and hindrance to ongoing investigations if the applicant were to be released on bail.Issue 3: Judicial EvaluationThe court considered the arguments presented by both sides and examined the medical reports of the applicant. It noted the persistent health issues faced by the applicant despite medical treatment provided in jail and government hospitals. The court acknowledged the seriousness of the applicant's ailments, especially in the context of the COVID-19 pandemic. Referring to Section 45 of the P.M.L. Act, the court deliberated on the conditions for granting bail, emphasizing the need to ensure the applicant's presence during trial while addressing his medical needs.ConclusionUltimately, the court granted bail to the applicant/accused No.5 solely on medical grounds, without delving into the merits of the case. The court imposed stringent conditions, including a bail bond, reporting to the Enforcement Directorate, surrendering the passport, and cooperating with the investigation. By balancing the medical exigencies of the applicant with the requirements of justice, the court aimed to secure the applicant's presence for trial while addressing his health concerns effectively.