PMLA bail granted where documentary loan records, completed investigation, and cooperation undermined the alleged unaccounted money flow.

Documentary records supported the petitioner's claim that the alleged loan routing was accounted for, as the balance sheet with the income-tax return reflected an unsecured loan to him and an onward loan to the co-accused. That position was reinforced by RTI material and the adjudicating authority's order releasing attached properties after considering the documents and section 50 PMLA statements. Since the petitioner was not arraigned in the scheduled offence, had cooperated in investigation, and the investigation was complete with a supplementary complaint filed, bail was granted in the PMLA prosecution.

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Issues: Whether the petitioner was entitled to bail in a prosecution under the Prevention of Money Laundering Act, 2002 in the light of the documentary material regarding the loan transaction, the adjudicating authority's findings, completion of investigation, and the petitioner's cooperation.

Analysis: The allegation against the petitioner centered on an asserted unaccounted loan flow of more than one crore rupees, said to have been routed through his wife to a co-accused. The material relied upon in the supplementary complaint was tested against the balance sheet appended to the income-tax return for the relevant assessment year, which reflected the unsecured loan from the petitioner and the onward loan to the co-accused. That documentary position was also supported by information obtained under the Right to Information Act and was noted in the adjudicating authority's order, which had released the attached properties after assessing the documents and the statements recorded under section 50 of the Prevention of Money Laundering Act, 2002. The petitioner had not been arraigned in the main scheduled offence, had cooperated in the investigation, and the investigation had already been completed with the supplementary complaint filed.

Conclusion: The petitioner was found entitled to bail.

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