TaxTMI 
TaxTMI 
2014 (11) TMI 1105
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.... 3. The complaint that has been filed before the Special Court runs into 61 pages. An affidavit in reply to the Bail Application that came to be filed by the respondent no.1 also runs into 34 pages. The applicant has also filed additional affidavit in support of the Bail Application, and again, an additional affidavitinreply came to be filed on behalf of the respondent no.1. Additionally, a compilation of a number of documents has been tendered by the parties. 4. In brief, the case against the applicant may be stated as follows :- That the applicant was, at the material time, Chairman and Managing Director of M/s.City Limosins (India) Ltd, City Realcom Ltd, and some other companies described as 'City Group of Companies'. That, 90% of the share capital of M/s.City Limosin India Ltd is held by the applicant and the Razaki family, two from which family are also accused in the said case. The applicant, through the said companies, floated various schemes offering unrealistic returns to the investors/depositors. A large number of people throughout the country invested sums in these companies. After securing substantial amounts from the investors, the Companies shut their....
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....out of a case of cheating and/or criminal breach of trust registered against him at Nagpada Police Station (Bail Application No.216/14 arising out of C.R.No.205/10 of Nagpada Police Station). The investors had sought intervention in the said application, and due to the vehement opposition to the said application for bail by the person claiming to be the President of the Investors Association who, through her counsel, raised a number of contentions, the substance of which was, however only one i.e. that the applicant should not be released on bail till he pays back the money to the investors. It was contended that the applicant has sufficient resources to repay such amounts, and that he has some properties even abroad, and that the applicant is still deliberately not repaying those amounts. It that case, the applicant had been initially released on bail on certain terms and conditions, but the bail granted to him was cancelled, as the applicant had failed to comply with the terms and conditions imposed on him. By pointing it out, it was contended that the applicant would do the same again, if released on bail. It was also put forth that the cancellation of bail, as ordered by this C....
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....e application of bail in that case were got somewhat mixed. It is because, the investors while opposing the said bail application (Bail Application No.216 of 2010 arising out of C.R.No.205 of 2010 of Nagpada Police Station) did not confine themselves only to the facts of that case and in order show the magnitude of the offences allegedly committed by the applicant referred to the allegations levelled against the applicant in the present case also. Though, the investors had not sought intervention in the present case - and rightly so - since the arguments advanced by the counsel for the intervenors in that bail application touched some general aspects about the desirability of releasing the applicant on bail, I have taken the same into consideration while deciding the question of bail in the present case also. Thus, it is submitted by referring to the facts of C.R.No. 205 of 2010 of Nagpada Police Station that the applicant in that case did not comply with the conditions imposed upon him by the Court at the time of his release on bail and, therefore, bail granted to him was cancelled. Thus, it is also submitted that the applicant committed a breach of the direction to hold meeting w....
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....sequent to the order of cancellation of bail, and thereafter, has remained in custody. It in this background that the prayer of the applicant for release on bail ought to be considered. 12. It was submitted by Mr.Tiwari, the learned counsel for the applicant that the criminal cases filed against the applicant in respect of the offences of cheating etc. which are supposed to have generated the 'proceeds of crime' will have to be tried along with the Special case/cases under the PMLA Act. He submitted that these cases have not been forwarded to the Special Court under the PMLA Act at Mumbai, and as such, there is not even a likelihood of the trial commencing in near future. 13. The learned Public Prosecutor, and the counsel for the respondent no.1 did not dispute this aspect. Even otherwise, it is clear from the scheme of PMLA Act that the scheduled offence/offences, and the offence of Money Laundering both shall be tried by the Special Court constituted under the PMLA Act. Section 44 of the PMLA Act makes this clear. Therefore, admittedly, there is no likelihood of the trial of the PMLA Special case commencing within a reasonable time. The only contention that is pu....
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.... of the IPC was mentioned in Part-B of the schedule. It is by the Prevention of Money Laundering (Amendment) Act 2012 (Act 2 of 2013) that the schedule was amended, and the offence punishable under section 420 of the IPC was brought in PartA of the Schedule. It is not in dispute that this change was brought into force with effect from 15th February 2013. 17. The learned Public Prosecutor however, contended that since the offence punishable under section 420 of the IPC now finds a place in Part-A of the schedule, the restrictions contained in section 45 would come in play. According to him, the offence of money laundering being a continuing offence, the applicant cannot benefit by the fact that at the material time, the offence punishable under section 420 of the IPC did not fall in Part-A of the schedule. In support of this proposition, the learned Public Prosecutor has placed reliance on a decision given by a learned Single Judge of this Court in ABA No.823 of 2012 decided on 1st April 2014. 18. Indeed, in that case, the learned Judge observed that the offence punishable under the Money Laundering Act is a continuing offence, but the proposition as spelt out by the learned P....
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....igation into offences punishable under the PMLA Act commenced; and even at the time when the complaint case came to be filed against the applicant, the provisions curtailing the discretion of the Court in the matter of grant of bail, as found in section 45 of the PMLA Act are not applicable in the instant case. There is, therefore, no bar to release the applicant on bail, even on the basis that there exists a prima facie case against him. 20. The question that now arises is whether the applicant should be released on bail. 21. As aforesaid, the applicant is in custody for a period of more than 3 years in connection with this case and the cases relating to the scheduled offences. The properties belonging to him and the aforesaid companies, have already been attached in various criminal cases pending against him and also in this case. The number of criminal cases registered against the applicant is too high. It is not clear whether investigation in all these cases has been completed. In view of the provisions of section 44 of the PMLA Act, the offences allegedly committed by the applicant - the scheduled offences which are said to have generated the proceeds of crime that are a....
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....aid, the Official Liquidator has already been appointed, and the adjudication proceedings are going on. How much property belonging to the applicant has been seized in the criminal cases that have been filed by the police in respect of cheating, criminal breach of trust etc, is not clear, but these properties would be available to the investors, if at all the allegations against the applicant are ultimately proved. That, the investors are prejudiced by attachment of the properties belonging to the applicant and/or his Companies under the provisions of the PMLA Act, as, according to them such properties would not be available for satisfying the claim of the investors by the sale of such properties,would indeed be rather paradoxical, but, as aforesaid, this cannot weigh against the applicant. If the interest of the investors are to be kept in mind, it would be open for the different Investigating Agencies to arrive at a proper course to be adopted in the matter by mutual consultation. 23. That the trial of this case not likely to proceed or even commence within a reasonable time cannot and has not been disputed. How much time it would take for the Investigating/Prosecuting Agency ....
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....d more than 3 years, but there is absolutely no possibility of the trial of this case commencing within a reasonable time. This is not disputed by the learned Public Prosecutor who submitted that steps for bringing the cases in respect of the scheduled offences allegedly committed by the applicant are before the Special Court under the PMLA Act, are being taken. As aforesaid, the properties belonging to the applicant and his Companies have already been attached, and the process of attachment is still being undertaken. Considering the volume of evidence that would be required to be adduced before the Special Court, it can be easily said that the trial would take several years for getting completed, after it commences; and presently even the commencement thereof is nowhere in sight. The applicant would be required to give sureties/securities not only in the present case if released on bail, but also in all the other cases of scheduled offences, though they would form a part of the present case only. As such, it would not be easy for him to abscond. In any case, appropriate conditions can be imposed upon the applicant to ensure that he would not abscond. Detaining the applicant furthe....