PMLA bail twin conditions satisfied where suspicious transactions lacked foundational link to the scheduled offence and control evidence.

In a bail application under the Prevention of Money-Laundering Act, the Court found no prima facie material linking the alleged transfers and forensic audit material to criminal activity relating to the scheduled offence in a manner sufficient to satisfy the statutory twin conditions. It held that the record did not show the applicant controlled the relevant accounts or operated the alleged firms, and the prosecution conceded there was nothing presently on record to establish that the property was derived or obtained from criminal activity relating to the scheduled offence. Mere unaccounted or suspicious transactions, without foundational material connecting them to the scheduled offence and the requisite knowledge or control, were insufficient. Bail was granted.

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Issues: Whether the applicant made out a case for regular bail under the Prevention of Money-Laundering Act, 2002 by satisfying the statutory twin conditions, namely reasonable grounds to believe that he was not guilty of the offence and was not likely to commit an offence while on bail.

Analysis: The allegation rested on alleged transfers by the company to several entities and the forensic audit material, but the Court found no prima facie material linking the alleged proceeds of crime to criminal activity relating to the scheduled offence in a manner sufficient to satisfy Section 45 of the Act. The record did not show that the applicant controlled the concerned accounts or operated the alleged firms, and the prosecution itself conceded that there was presently nothing on record to establish that the property was derived or obtained, directly or indirectly, as a result of criminal activity relating to the scheduled offence. The Court held that mere unaccounted or suspicious transactions, without foundational material connecting them to the scheduled offence and the requisite knowledge or control, do not by themselves establish money laundering for bail purposes.

Conclusion: The applicant satisfied the twin conditions for bail and was held entitled to be released on bail.

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