High Court grants bail under Cr.PC Section 439, removes PMLA conditions, emphasizes balance between liberty and investigation interests.

The High Court granted bail to the Applicant under Section 439 of the Cr.PC, following the removal of twin conditions under Section 45 of the PML Act. The court emphasized the balance between personal liberty and the interests of the investigating agency, considering the advanced stage of the investigation and the severity of potential punishment. Bail was subject to stringent conditions, including execution of a bond, reporting to the police station, cooperation with the investigation, and surrendering the passport. Breach of conditions or failure to cooperate could lead to bail cancellation.

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Issues Involved:
1. Application for regular bail under Section 439 of the Code of Criminal Procedure read with the Prevention of Money Laundering Act, 2002.
2. Constitutional validity of Section 45 of the PML Act.
3. Jurisdiction of the High Court to consider the bail application after remittance by the Apex Court.
4. Applicability of Sections 23 and 24 of the PML Act regarding presumption and burden of proof.
5. Consideration of bail under Section 439 of Cr.PC in light of the removal of twin conditions under Section 45 of the PML Act.

Issue-wise Detailed Analysis:

1. Application for Regular Bail:
The Applicant, the original accused, filed an application for regular bail under Section 439 of the Code of Criminal Procedure read with the Prevention of Money Laundering Act, 2002. The application was initially dismissed by the Sessions Court and later by the High Court on 12.1.2018, referring to the provisions of the PML Act.

2. Constitutional Validity of Section 45 of the PML Act:
A significant development occurred when the Hon'ble Apex Court, in Writ Petition (Criminal) No. 67/2007, declared Section 45(1) of the PML Act, which imposed two further conditions for release on bail, to be unconstitutional as it violated Articles 14 and 21 of the Constitution of India. Consequently, all matters where bail had been denied due to the twin conditions were remanded to the respective courts for fresh consideration without applying these conditions.

3. Jurisdiction of the High Court:
The Apex Court remitted the matter back for fresh consideration, leading to a debate on whether the High Court or the trial court should hear the bail application. The Applicant’s counsel argued that the matter should be heard by the High Court, as it was remitted back by the Apex Court. The Respondent’s counsel contended that the trial court should consider the application first. The High Court decided to hear the application itself, interpreting the Apex Court's order to mean that the High Court was the "concerned court."

4. Applicability of Sections 23 and 24 of the PML Act:
The Respondent’s counsel emphasized the provisions of Sections 23 and 24 of the PML Act, which deal with the presumption of interconnected transactions and the burden of proof. The court noted that these provisions require the court to presume that the proceeds of crime are involved in money laundering unless the contrary is proved. However, the court also recognized that these aspects would be more relevant at the trial stage rather than at the bail stage.

5. Consideration of Bail under Section 439 of Cr.PC:
With the removal of the twin conditions under Section 45 of the PML Act, the court considered the bail application under Section 439 of Cr.PC. The court referred to various judgments of the Hon'ble Apex Court, emphasizing the balance between personal liberty and the interests of the investigating agency. The court acknowledged that the severity of the punishment (up to 7 years) and the fact that the investigation was practically over were relevant factors favoring the grant of bail. The court also imposed stringent conditions to ensure the Applicant’s cooperation with the investigation and to prevent tampering with evidence or influencing witnesses.

Conclusion:
The High Court granted bail to the Applicant, subject to several conditions, including the execution of a bond, regular reporting to the police station, cooperation with the investigation, and surrendering of the passport. The court emphasized that the bail could be canceled if the conditions were breached or if the Applicant failed to cooperate with the investigating agency.

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