2021 (11) TMI 557 - HC - Money Laundering

Petitioner's Bail Application Denied in Money Laundering Case

The court denied the petitioner's bail application under Section 438 Cr.P.C. in a money laundering case, citing the seriousness of the economic offense ... Anticipatory bail under Section 438 Cr.P.C. - Prevention of Money Laundering Act, 2002 - serious economic offence / gravity of offence - failure to challenge non-conversion of warrant / earlier order - principle in P. ChidambaramAnticipatory bail under Section 438 Cr.P.C. - Prevention of Money Laundering Act, 2002 - serious economic offence / gravity of offence - principle in P. Chidambaram - failure to challenge non-conversion of warrant / earlier order - Anticipatory bail sought by the petitioner in proceedings under the Prevention of Money Laundering Act, 2002 was to be granted or refused. - HELD THAT: - The Court examined the petition for anticipatory bail under Section 438 Cr.P.C. in the backdrop of allegations under the Prevention of Money Laundering Act, 2002 and the facts that the petitioner had not challenged the trial court's order dated 17.09.2021 rejecting conversion of the non-bailable warrant. The Court noted the seriousness and gravity of the alleged economic offence and observed that the principles articulated by the Supreme Court in P. Chidambaram were relevant, but, without expressing any opinion on merits, found the present case not fit for enlargement on anticipatory bail. The non-prosecution of the challenge to the earlier order was considered a relevant factor against granting anticipatory bail. Having considered the submissions of both parties and the record, the Court declined to exercise its discretion in favour of the petitioner.Anticipatory bail application dismissed.Final Conclusion: On consideration of the facts, the gravity of the alleged money-laundering offence, the petitioner's failure to challenge the trial court's order refusing conversion of the warrant, and applying the governing principles without expressing on merits, the High Court dismissed the anticipatory bail application. Issues:Bail application under Section 438 Cr.P.C. in a case related to money laundering under the Prevention of Money Laundering Act, 2002.Analysis:The petitioner filed a bail application under Section 438 Cr.P.C. in connection with a complaint related to money laundering. The petitioner argued that he was falsely implicated, as his name was not mentioned in the FIR, and he was not a party to any agreement. The police submitted a final negative report after investigation, but the trial court still took cognizance against the petitioner and others. The petitioner claimed that he had informed the complainant about legal constraints preventing him from sending a large amount in foreign currency, which led to the complaint before the Enforcement Directorate. The petitioner had joined the investigation and cooperated by narrating the entire incident.The trial court had issued an arrest warrant without providing a clear reason, and the petitioner's application to convert the non-bailable warrant into a bailable one was rejected. The petitioner's counsel cited judgments by the Supreme Court to support the bail application. However, the respondent argued that the bail application was misconceived and should be dismissed due to the serious economic offense of money laundering. The respondent alleged that the petitioner, in association with another individual, misused power of attorney to transfer property and deposit a significant amount in various accounts.The respondent relied on several judgments to oppose the bail application, emphasizing the gravity of the offense. After considering the arguments from both sides and reviewing the record, the court found that the petitioner had not challenged the trial court's rejection order and was involved in a serious economic offense. Referring to legal principles established by the Supreme Court in previous cases, the court decided not to grant anticipatory bail to the petitioner, ultimately dismissing the bail application.