Regular bail under PMLA refused where prima facie laundering material and unexplained proceeds of crime linked the accused to the offence.

Regular bail in a PMLA prosecution may be refused where the material discloses a prima facie role in laundering proceeds of crime and the accused fails to satisfactorily explain the source and movement of funds. On the facts noted, allegations of large-scale misappropriation of depositors' money, the petitioner's alleged control over the bank and related entity, and the pending connected criminal proceedings supported the gravity of the accusation. The attachment proceedings did not reduce that seriousness. Bail was rejected.

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

Analysis: The petition was considered in the backdrop of allegations of large-scale misappropriation of depositors' funds, invocation of the predicate offences, registration of the Enforcement case, summons under the money-laundering law, and the petitioner's alleged role as the controlling functionary of the bank and related entity. The material placed before the Court indicated that the investigation had disclosed a prima facie case of money laundering, that the petitioner had not satisfactorily explained the source and movement of the proceeds, and that the alleged offences involved serious economic consequences. The Court also noted the pendency of the connected criminal proceedings and the fact that the attachment proceedings had not diluted the gravity of the accusations.

Conclusion: The petitioner was not found entitled to bail and the request for regular bail was rejected.

Final Conclusion: Bail was declined in view of the seriousness of the alleged money-laundering activity and the prima facie material connecting the petitioner to the offence.

Ratio Decidendi: In a money-laundering prosecution, regular bail may be refused where the available material discloses a prima facie role in the alleged laundering of proceeds of crime and the Court is not satisfied that the accused has made out a case for release.

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