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Issues: (i) Whether the petitioner was entitled to bail in a prosecution under the Prevention of Money-Laundering Act, 2002 in view of the material collected, the stage of the trial, and the allegation of prolonged incarceration. (ii) Whether the presumption under section 24 of the Prevention of Money-Laundering Act, 2002 had to be tested against the foundational facts and whether the statements of the petitioner and co-accused could, at the bail stage, justify continued custody.
Issue (i): Whether the petitioner was entitled to bail in a prosecution under the Prevention of Money-Laundering Act, 2002 in view of the material collected, the stage of the trial, and the allegation of prolonged incarceration.
Analysis: The Court noted that the petitioner had remained in custody for more than twenty months, charge had not yet been framed, and the trial was not likely to commence soon. The prosecution case depended largely on voluminous documentary material, statements, and witnesses, most of which were already in the custody of the Enforcement Directorate, reducing the risk of tampering. The Court also considered the constitutional protection of personal liberty and speedy trial under Article 21, and held that prolonged pre-trial incarceration cannot be allowed to become punishment before trial.
Conclusion: The petitioner was entitled to bail.
Issue (ii): Whether the presumption under section 24 of the Prevention of Money-Laundering Act, 2002 had to be tested against the foundational facts and whether the statements of the petitioner and co-accused could, at the bail stage, justify continued custody.
Analysis: The Court proceeded on the basis that the statutory presumption under section 24 operates only after the prosecution establishes foundational facts connecting a scheduled offence, the property, and the accused with proceeds of crime. At the bail stage, the Court held that the case could not rest conclusively on the statements of the petitioner or co-accused, and that such statements were matters for trial rather than final evaluation on bail. The Court further held that disputed factual issues regarding the scope of the investigation and the evidentiary value of recovered material had to be examined at trial.
Conclusion: The presumption was not treated as a bar to bail on the facts of the case.
Final Conclusion: Bail was granted with stringent conditions in view of the petitioner's right to liberty and speedy trial, while leaving the merits of the prosecution case open for determination at trial.
Ratio Decidendi: In a money-laundering prosecution, prolonged incarceration, absence of imminent trial, and the limited utility of disputed statements and custodial material at the bail stage can justify release on bail, particularly where the prosecution already holds the documentary record and the risk of interference with evidence is minimal.
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