TaxTMI 
TaxTMI 
2015 (7) TMI 1313
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....alty of Rs. 1 crore imposed on the Rose Valley by the adjudicating authority under the Securities and Exchange Board of India Act, 1992 (hereafter referred to as the SEBI Act) was reduced to Rs. 10 lakh by the Securities Appellate Tribunal, Mumbai on December 12, 2013 in Appeal 106/2013. Mr. Basu argues that the proceeding under Section 24 of the SEBI Act, 1992 is challenged in the High Court by way of revision and the said revision is still pending for hearing and the further proceeding of the complaint case being C/14214 of 2013 has been stayed by the High Court in the said revision. Mr. Basu also argues that the Hon'ble Division Bench of this court directed the opposite party not to take any coercive measure against the petitioner in FMA 4031 of 2014 on November 28, 2014, which continued till the disposal of the appeal on March 30, 2015. Mr. Basu also submits that the complaint was filed by the opposite party on April 2, 2015 against the petitioner under Section 4 of the Prevention of Money-Laundering Act, 2002 (hereinafter referred to as the PML Act), though no offence is made out against the petitioner under Section 3 of the PML Act. The further submission made by Mr. Basu....
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....under Section 24 of the SEBI Act. Dr. Shamsuddin further contends that the petitioner is still now in the process of acquiring untainted property from the fund already acquired by issuing secured debentures to the members of the public in violation of the guidelines issued by SEBI and thereby offence under Section 4 of the PML Act is made out. He has pointed out about the stringent provisions laid down in Section 45 of the PML Act for the purpose of granting bail to the petitioner. By referring to the provisions of Section 24, Section 65 and Section 71 of the PML Act Dr. Shamsuddin argues that the legislatures have enacted the special provisions for drawing presumption of the offence and the general provisions of the Code of Criminal Procedure can be invoked in such economic offences only when the general provisions of the Code of Criminal Procedure are inconsistent with the special provisions laid down in the PML Act. He has relied on the decisions reported in (2014) 8 SCC 768, (1987) 2 SCC 364, (2013) 7 SCC 439, (2011) 10 SCC 235 and two unreported decisions (Criminal Appeal No. 728 of 2013 decided on 09-05-2013 and CRLMC No. 114 of 2011 decided on 16-12-2013) in support of his a....
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....he entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to book. In "Nimmagadda Prasad V. Central Bureau of Investigation" reported in AIR 2013 SC 2821, the Supreme Court has held in paragraph 27 that the court in dealing with bail must be satisfied whether there is a genuine case against the accused and whether the prosecution will be able to produce prima facie evidence in support of the charge. It is also held in the said paragraph that it is not expected, at this stage, to have evidence establishing the guilt of the accused beyond reasonable doubt. In "Y.S. Jagan Mohan Reddy V. Central Bureau of Investigation" reported in (2013) 7 SCC 439 the Supreme Court has observed in paragraph 34 that the economic offences having deep rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of country. In "Union of India V. Hassan Ali Khan" reported in (2011) 10 SCC 235 the Supreme Court has laid down in paragraph 34 what will be the burden of proof when attempt is made ....
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....ndly, the court must be satisfied that there are reasonable grounds for believing that the accused person is not guilty of such offence and that he is not likely to commit any offence while on bail. The proviso to Section 45 of the P.M.L. Act indicates that the legislature has curved out an exception for grant of bail by the special court when any person is under age of 16 years or is a woman or is a sick or infirm. So, the conditions laid down in Section 45(1) of the P.M.L. Act for grant of bail are binding on the High Court as provisions of special law having overriding effect on the provisions of Section 439 of the Code of Criminal Procedure for grant of bail to any person accused of committing offence punishable under Section 4 of the P.M.L. Act, even when the application for bail is considered under Section 439 of the Code of Criminal Procedure. In view of my above findings, I am unable to accept the contention made on behalf of the petitioner. 9. Admittedly, the complaint is filed against the petitioner on the allegation of committing offence punishable under Section 4 of the P.M.L. Act. The contention made on behalf of the petitioner that no offence under Section 24 of the ....