2024 (7) TMI 1617 - HC - Money Laundering

Interim bail granted to attend uncle's last rites despite passport held by CBI in corruption case under IPC Sections 409, 419, 465-467, 120B and Prevention of Corruption Act

Hitesh Gandhi Versus Enforcement Directorate

HP HC granted interim bail to applicant to attend uncle's last rites who expired on 07.07.2024. Court considered peculiar circumstances despite ... Seeking grant of interim bail - applicant has sought the indulgence of this Court to permit him to attend the last rites of his uncle - HELD THAT:- Considering the peculiar facts and circumstances of the case, according to which, applicant’s uncle has expired on 07.07.2024 and his last rites will be performed in near future, this Court is of the view that the prayer for interim bail can be allowed. It is not in dispute that the passport of the applicant is with the Central Bureau of Investigation in case No. RC0962019A0002 dated 07.05.2019, under Sections 409, 419, 465, 466, 467 read with Section 120B of Indian Penal Code and Sections 13(1)(c), 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act. Considering this fact, this Court is of the view that the interim bail application is liable to be allowed, as such, his application is allowed, so that the applicant could attend the last rites of his uncle - Bail application allowed. ISSUES PRESENTED and CONSIDEREDThe primary legal issue considered in this judgment is whether the applicant, who is currently in judicial custody, should be granted interim bail to attend the last rites of his deceased uncle. This involves evaluating the balance between the applicant's personal circumstances and the ongoing investigation into serious allegations of financial fraud and money laundering under the Prevention of Money Laundering Act (PMLA).ISSUE-WISE DETAILED ANALYSIS1. Legal Framework and PrecedentsThe application for interim bail is filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The case involves allegations under the PMLA, which is a stringent law dealing with money laundering activities. The relevant legal framework includes the twin conditions under Section 45 of the PMLA, which generally make bail difficult to obtain unless specific conditions are met. Additionally, the case involves scheduled offences under the Indian Penal Code (IPC) and the Prevention of Corruption Act.2. Court's Interpretation and ReasoningThe Court considered the exceptional personal circumstances of the applicant, specifically the death of his uncle and the need to perform last rites, which are culturally significant. The Court balanced this with the seriousness of the allegations against the applicant, including his alleged involvement in a substantial scam involving misappropriation of scholarship funds intended for SC, ST, and OBC students.3. Key Evidence and FindingsThe Enforcement Directorate (ED) has alleged that the applicant played a major role in the scam, involving the diversion of scholarship funds. The ED's investigation is ongoing and is at a crucial stage, requiring the gathering of additional evidence and examination of records. The applicant is alleged to have supervised fraudulent activities related to scholarship claims and is linked to the proceeds of crime amounting to Rs. 4.42 crore.4. Application of Law to FactsThe Court applied the principles of interim bail, considering the applicant's personal circumstances against the backdrop of the ongoing investigation. The Court noted that the applicant's passport is already with the Central Bureau of Investigation, reducing the risk of flight. The Court also imposed strict conditions to ensure that the applicant does not interfere with the investigation or tamper with evidence.5. Treatment of Competing ArgumentsThe ED opposed the bail application, emphasizing the seriousness of the offences under the PMLA and the potential for the applicant to influence witnesses or hamper the investigation. The Court acknowledged these concerns but found that the personal circumstances justified a temporary release under stringent conditions.6. ConclusionsThe Court concluded that the applicant should be granted interim bail for a limited period to attend the last rites of his uncle, subject to strict conditions to mitigate the risk of interference with the investigation.SIGNIFICANT HOLDINGSThe Court held that the applicant is to be released on interim bail for six days, from 16.07.2024 to 21.07.2024, upon furnishing a personal bail bond and sureties. The order is subject to conditions including non-tampering with evidence, non-inducement of witnesses, restriction on travel, and surrender by a specified date. The Court emphasized that these observations are confined to the bail application and do not reflect on the merits of the case.Core Principles EstablishedThe judgment underscores the principle that personal circumstances, such as the need to perform culturally significant rites, can justify interim bail even in serious cases, provided that adequate safeguards are in place to protect the integrity of the investigation.Final Determinations on Each IssueThe Court determined that interim bail is appropriate in this case, balancing the applicant's personal needs with the requirements of the ongoing investigation. The conditions imposed aim to ensure compliance and prevent any adverse impact on the investigation process.