Bail under PMLA refused where the record showed a prima facie role in handling proceeds of crime.

In a PMLA prosecution, bail was refused where the record showed a prima facie role in handling proceeds of crime and assisting the main fraudster. The petitioner was also linked to the infusion of share capital in breach of the bank's bye-laws, which reinforced the allegation of involvement in the laundering activity. Applying the gravity of the alleged offence and the petitioner's apparent participation, the HC found no basis to enlarge him on bail, and the application was dismissed.

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Issues: Whether the petitioner was entitled to bail in a prosecution for offences under the Prevention of Money Laundering Act, 2002.

Analysis: The petitioner was found to be a close associate of the main fraudster and to have assisted in managing the proceeds of crime generated through the cooperative society. The record also indicated that he helped infuse share capital in violation of the bye-laws of the bank. In view of the nature and gravity of the alleged money-laundering activity and the petitioner's role in it, the Court found no basis to enlarge him on bail.

Conclusion: Bail was refused and the petitioner's application was dismissed.

Ratio Decidendi: In a money-laundering case, where the record shows a prima facie role in handling proceeds of crime and the gravity of the offence is substantial, bail may be declined in the exercise of judicial discretion.

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