2022 (12) TMI 1374 - HC - Money Laundering

High Court grants bail in Money Laundering case, insufficient evidence found. Specific release conditions imposed.

The High Court granted bail to the accused-applicant in a case under the Prevention of Money Laundering Act. The court found insufficient evidence linking ... Money Laundering/criminal conspiracy - proceeds of crime - it is alleged that the accused-applicant is a part of larger conspiracy hatched by K.A. Rauf Sherif, Secretary of PFI to visit Hathras with an intention to disturb communal harmony, instigating riots and spreading terror and to fund anti-CAA protest and for other unlawful activities of PFI - conditions under Section 45 of the PMLA fulfilled - HELD THAT:- Except for allegations that Rs. 5,000/- was transferred in the bank account of co-accused, Atikur Rahman, there is no other transaction, either in the bank account of the accused-applicant or in the bank account of co-accused. Even if it is believed that part of proceeds of crime was transferred in the bank account of co-accused, Atikur Rahman that itself may not be sufficient to prove that the accused-applicant has dealt with the proceeds of crime amounting to Rs. 1,36,14,291/-which had been allegedly received by K.A. Rauf Sherif. Considering the facts, coupled with the contention on behalf of the accused-applicant that in the present case the twin conditions, as mentioned under Section 45 of the PMLA, are not attracted inasmuch as the proceeds of crime is less than Rs.1 Crore and there is no likelihood of the accused-applicant to commit the same offence in future, and the fact the accused-applicant has already been in prison in predicate offences from 05.10.2020 till he was enlarged on bail by the Supreme Court, and thereafter he is in custody of the ED, the accused-applicant is entitled to be released on bail. Let applicant- Sidhique Kappan, accused of mentioned FIR/crime number, be released on bail on his furnishing a personal bond and two local and reliable sureties each in the like amount to the satisfaction of the Court/Magitrate concerned with the following conditions, which are imposed in the interest of justice - Application allowed. Issues:- Bail application under Section 45 of the Prevention of Money Laundering Act, 2002 (PMLA) read with section 439 CrPC.Analysis:1. Accused-Applicant's Background and Arrest: The accused-applicant, a press reporter accredited by the Press Council of India, was arrested while traveling to Hathras to cover an incident. He was associated with AZHIMUKHAM.COM and was directed by the news portal's manager. The arrest was in connection with various offenses under different Acts.2. Bail Application and Allegations: The accused-applicant sought bail in a case under PMLA arising from a complaint filed after being granted bail by the Supreme Court in a previous case. The complaint alleged that he was part of a conspiracy by 'Popular Front of India' (PFI) to disturb communal harmony, instigate riots, and fund anti-CAA protests through fraudulent transactions.3. Proceeds of Crime and Criminal Conspiracy: The investigation revealed that the accused-applicant was involved in a criminal conspiracy with K.A. Rauf Sherif and others to transfer money obtained through criminal activities. The proceeds of crime were used for unlawful activities under the Unlawful Activities (Prevention) Act, 1967. The money trail indicated substantial amounts involved in fraudulent transactions.4. Legal Arguments and Counter-Arguments: The accused-applicant's counsel argued that the complaint lacked specific details on the accused's involvement and the amount of proceeds of crime used. They contended that mere association with PFI does not constitute an offense under PMLA. The counsel emphasized that the accused did not meet the criteria under Section 45 of PMLA for bail denial.5. ED's Submission and Court's Decision: The Enforcement Directorate (ED) argued that the accused was part of the conspiracy and the proceeds of crime exceeded Rs. 1 Crore, justifying denial of bail under PMLA. After considering both sides, the court found insufficient evidence linking the accused to the substantial proceeds of crime. Consequently, the court granted bail to the accused-applicant with specific conditions to ensure his presence during legal proceedings.6. Bail Conditions and Observations: The court allowed the bail application, ordering the release of the accused-applicant on a personal bond and sureties. Specific conditions were imposed to prevent misuse of bail and ensure the accused's presence in court. The court clarified that its decision on bail did not influence the ongoing adjudication proceedings under PMLA against the accused-applicant.