Petitioner granted bail in money laundering case under Prevention of Money Laundering Act

The court granted bail to the petitioner in a case registered under the Prevention of Money Laundering Act. Despite allegations of money laundering and involvement in converting demonetized currency, the court considered factors such as the petitioner's detention period and lack of direct ownership of the recovered currency. Bail was granted on a personal bond of Rs. 5 lakhs with conditions to stay in India and subject to further examination of ownership during trial.

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Issues involved:
Petition for regular bail under Section 439 Cr.P.C. in a case registered under Prevention of Money Laundering Act, 2002 (PMLA) based on allegations of money laundering and conversion of demonetized currency.

Analysis:
1. The petitioner sought regular bail under Section 439 Cr.P.C. in a case registered under PMLA, where he was accused of converting demonetized currency into monetized currency in violation of the demonetization policy announced by the Government of India. The Enforcement Directorate asserted that the petitioner was a key figure in this illegal activity, exchanging demonetized currency for a commission and converting large sums for various individuals.

2. The Enforcement Directorate highlighted that the petitioner had admitted to owning a significant amount of the recovered currency in his statement recorded under Section 50 PMLA. Additionally, the petitioner was intercepted at the airport while attempting to flee the country, indicating a flight risk. The petitioner's involvement in similar cases was also discussed, with details of his arrest in another PMLA case in Chennai.

3. The court noted that the premises where the raid took place did not belong to the petitioner, and he was not present during the recovery of a substantial amount of currency. The petitioner denied ownership of the recovered currency, and no other cash recovery was linked to him. Statements of co-accused implicated the petitioner, but the ownership of the money was disputed and required further examination during trial.

4. After considering the circumstances, including the petitioner's detention since December 2016, the court granted bail on a personal bond of Rs. 5 lakhs with one surety. The petitioner was instructed not to leave India without the Trial Court's permission. The bail application was disposed of accordingly, with the order issued for immediate action.

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