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        Money Laundering

        2022 (11) TMI 49 - HC - Money Laundering

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        Unlawful post-detention custody and delayed magistrate production justified bail under constitutional safeguards in money-laundering proceedings. Detention of a person at the airport and continued restraint before preparation of the arrest memo and production before the remand court were treated as ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Unlawful post-detention custody and delayed magistrate production justified bail under constitutional safeguards in money-laundering proceedings.

                          Detention of a person at the airport and continued restraint before preparation of the arrest memo and production before the remand court were treated as relevant to compliance with Article 22 of the Constitution, which requires production before the nearest magistrate within twenty-four hours of arrest, excluding journey time. Continued custody beyond the constitutionally permitted period without judicial authorisation was treated as unlawful and supported grant of bail under the Prevention of Money Laundering Act, 2002. The court also noted that the complaint had already been filed, the matter was before the trial court, and trial was likely to take time. Bail was granted subject to conditions.




                          Issues: Whether the applicant was entitled to bail in view of the detention at the airport, the delay in production before the magistrate, and the surrounding circumstances of the prosecution under the Prevention of Money Laundering Act, 2002.

                          Analysis: The material on record showed that the applicant was taken into custody at the airport and kept under restraint before the arrest memo was prepared and before he was produced before the remand court. Article 22 of the Constitution of India requires production before the nearest magistrate within twenty-four hours of arrest, excluding journey time. The Court treated the restraint from the time of detention as material for testing compliance with this constitutional safeguard and relied on the principle that continued detention beyond the permitted period without judicial authority is unlawful. It also noted that the complaint had already been filed, the matter had reached the trial court, and the trial was likely to take time.

                          Conclusion: The applicant was entitled to bail and the application was allowed.

                          Final Conclusion: Personal liberty was held to prevail on the facts of the case, and the applicant was ordered to be released on bail subject to conditions.

                          Ratio Decidendi: Detention of an arrested person beyond the constitutionally permitted period without production before the magistrate and judicial authorisation renders the continued custody unlawful and can justify grant of bail.


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