Health condition grants bail despite fraud allegations

The court granted the petitioner regular bail under Section 4 read with Section 70 of the PMLA due to his deteriorating health condition falling under the "sick" exception in Section 45 of the PMLA. Despite evidence of his involvement in fraudulent activities benefiting from crores of rupees, the court considered his severe comorbidities, including obesity, hypertension, diabetes, and coronary artery disease, as justifying his release on bail. The court emphasized that the decision did not reflect on the merits of the main case and required the petitioner to provide bail bonds/surety bonds to the trial court.

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Issues Involved:
1. Grant of regular bail under Section 4 read with Section 70 of the PMLA.
2. Petitioner's involvement and arrest.
3. Petitioner's role and received benefits.
4. Health condition of the petitioner.
5. Applicability of Section 45 of the PMLA and its exceptions.

Issue-wise Detailed Analysis:

1. Grant of Regular Bail under Section 4 read with Section 70 of the PMLA:
The petitioner sought regular bail concerning a complaint under Section 4 read with Section 70 of the Prevention of Money Laundering Act, 2002 (PMLA). The petitioner was initially cited as a witness but was later arrested and accused of being a beneficiary of crores of rupees through the fraudulent activities of the company he was associated with.

2. Petitioner's Involvement and Arrest:
The sequence of events leading to the petitioner's involvement included multiple FIRs registered in Haryana and Hyderabad against the directors of M/s FMLC and others. The petitioner, initially a witness, was later found to have direct involvement and was arrested on 10.03.2022. A supplementary complaint filed on 07.05.2022 specifically alleged the petitioner's involvement in the scam, benefiting to the extent of about Rs.53 crores.

3. Petitioner's Role and Received Benefits:
The petitioner's counsel argued that he was merely an employee handling software for the company and received payments as professional remuneration. However, evidence indicated that the petitioner played a pivotal role in managing software used to siphon off about Rs.3000 crores. Investigation revealed substantial amounts transferred to the petitioner's and his relatives' accounts, which could not be justified. The court found that the petitioner could not feign ignorance of the company's illegal activities.

4. Health Condition of the Petitioner:
The petitioner claimed deteriorating health due to severe comorbidities, including obesity, hypertension, diabetes, and coronary artery disease. A medical report confirmed his precarious health condition, stating that his health was deteriorating considerably. The court acknowledged that jail facilities might not be adequately equipped to handle his multiple ailments, making him fall under the "sick" exception in Section 45 of the PMLA.

5. Applicability of Section 45 of the PMLA and its Exceptions:
Section 45 of the PMLA imposes stringent conditions for granting bail, requiring the court to be satisfied that the accused is not guilty and not likely to commit any offense while on bail. Despite the Supreme Court's previous ruling in Nikesh Tarachand Shah's case declaring the twin conditions unconstitutional, the amended provisions of Section 45 were upheld in Vijay Madanlal Choudhry's case. The court found that the petitioner's complicity was evident from the evidence, and there was a likelihood of him fleeing from justice. However, considering the petitioner's severe health condition, the court deemed he fell under the "sick" exception, justifying his release on bail.

Conclusion:
The court ordered the petitioner's release on regular bail due to his deteriorating health condition, while clarifying that the observations made were not an expression on the merits of the main case. The petitioner was to furnish bail bonds/surety bonds to the satisfaction of the trial court.

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