Bail in money laundering proceedings granted where custody was unnecessary for investigation and no risk of absconding was shown.

In a bail application arising from proceedings under the Prevention of Money Laundering Act, the HC held that custody was not shown to be necessary for investigation and that there was no material indicating misuse of liberty, likelihood of absconding, or departure from the country. The objection that release would hinder further investigation was unsupported, and no clear nexus was shown between bail and prejudice to the inquiry, particularly where the identified properties were in India and abroad. On this material, the Court found the applicant fit for bail and granted release.

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Issues: Whether the applicant, arrested in proceedings under the Prevention of Money Laundering Act, 2002, was entitled to bail under Section 439 of the Code of Criminal Procedure, 1973.

Analysis: The applicant had been in custody since arrest, had earlier obtained bail in the connected main offences, and there was nothing on record to show misuse of liberty, attempt to abscond, or departure from the country. The objection that release would hinder further investigation was not supported by any clear explanation, especially when the identified properties were situated in India and abroad and the Court found no clear nexus between bail and any prejudice to investigation. On the material placed before it, the Court found the application fit for grant of bail.

Conclusion: Bail was granted to the applicant.

Ratio Decidendi: In deciding a bail application, the Court may grant liberty where custody is not shown to be necessary for investigation and there is no material indicating misuse of liberty or likelihood of absconding.

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