Bail under money laundering law refused where forged documents, layering of proceeds, and risk of tampering were shown.

Bail under the Prevention of Money Laundering Act was declined where investigation materials and statements indicated prima facie involvement in creating fake fixed deposit receipts, preparing forged documents for false accounts, and facilitating the movement and layering of proceeds of crime. The court also relied on the accused's prior involvement in a similar bank fraud matter, the ongoing stage of investigation, and the risk that release could lead to tampering with evidence and obstruction of further inquiry. The accused's narrow reading of Section 3 of the PMLA did not assist on the facts, and bail was refused.

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Issues: Whether the petitioner was entitled to bail in a prosecution under the Prevention of Money Laundering Act, 2002, in the light of the materials collected during investigation, the alleged creation and use of forged documents, the prima facie involvement in handling proceeds of crime, and the petitioner's antecedents.

Analysis: The materials relied on by the prosecution, including statements recorded during investigation, indicated that the petitioner was not confined to a peripheral role but was prima facie involved in creating fake fixed deposit receipts, preparing forged documents for opening false accounts, and assisting in the movement and layering of the alleged proceeds of crime. The Court also took note of the petitioner's prior involvement in a similar bank fraud case, the magnitude of the alleged public money involved, the stage of ongoing investigation, and the apprehension that release on bail could lead to tampering with evidence and obstruction of further investigation. The Court found that the petitioner's reliance on the narrow reading of Section 3 of the Prevention of Money Laundering Act, 2002 did not advance his case on the facts.

Conclusion: Bail was refused because a prima facie case of money laundering was made out and the circumstances did not justify release at that stage.

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