TaxTMI 
TaxTMI 
2021 (6) TMI 1091
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....in Crime No.17 of 2018. ii) The main allegation against the petitioners is that the petitioners and the others, who are family members availed loans on the basis of inflated value of the properties mortgaged and indulged in wilful diversion of funds through various group accounts. The case has been declared as fraud by the Bank on 06.12.2017. The total outstanding amount as on 07.01.2019 is Rs. 390.21 Crores. These group of companies are called as 'Prabhat Group' and this group established many units in Trichy, Dindigul and Tenkasi. Their main business is located in Trichy. The total exposure of the group from various branches of the Bank as on 07.04.2014 was Rs. 829 Crores. But, in the complaint, it has been stated that likely loss to the Bank is Rs. 325.08 Crores. The Bank has also noticed fraudulent connotations in 34 accounts of the group in 3 of their branches. It has also noticed cash deposits of Rs. 17.10 Crores during the December 2016 (demonetization period). iii) Based upon the complaint, a case in Crime No.17 of 2018 for the punishable offences under Sections 120-B r/w 406, 420, 468 and 471 of IPC was registered. Based upon the First Information....
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.... accounts on 87 occasions for accommodative purposes. By that process, an amount of Rs. 113,89,08,395/- was laundered through various accounts of nonrelated entities. He also submitted the fake and fabricated partnership deeds to the Corporation Bank and also has shown bogus inflated turnover to the Banks, Income Tax Department and Sales Tax Department. He ensured that PoC of Rs. 325.08 Crores obtained from the Corporation Bank was screened away after merging into the finances of running group concerns. 6. These are the main allegations that have been levelled against the petitioners as per the complaint. 7. The petitioners seek bail on the following grounds:- It is denied that inflated values of mortgage properties were submitted. The petitioner repaid more than Rs. 200 Crores interest and principal amount. Moreover, totally, Rs. 43.50 Crores were also paid, which was received by the Corporation Bank. It is long term loan commenced from 2017. The value of the mortgaged properties is more than the loan availed to them. They are doing business in various fields such as, agriculture, sugar, timbers and other investments. So, fund transfer cannot be defined under Money Launderin....
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....nitiated. Both the petitioners were arrested and remanded to judicial custody. Now, they are in custody for more than 70 days. 10. The petitioners also filed separate bail applications before the Concerned Court namely, II Additional District Court/ Special Court (CBI Cases), Madurai, which were dismissed by the orders dated 15.03.2021 and 17.05.2021 respectively. The modus operandi that has been adopted by the petitioners are stated above. We need not to go into those aspects. 11. A simple point, which arises for consideration is whether in the facts and circumstances of the case, bail can be granted under Section 45 (1) of Prevention of Money Laundering Act. This provision has undergone amendment in the year 2018. Originally, this provision stood as, "45. Offences to be cognizable and non-bailable. (i) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence punishable for a term of imprisonment of more than three years under Part A of the Schedule shall be released on bail or on his own bond unless-] (ii) the Public Prosecutor has been given an opportunity to oppose the application fo....
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....he considered view that the Parliament thought it fit to treat the offences against the economy on par with the offences against the health. That is why, we see verbatim reproduction of words used section 37 in NDPS Act into the provision of Money Laundering Act. 17.The reason can be seen in the present day situation. At one end the economy of the country is growing and at another end, Offences against the economy, more particularly, Banking frauds are on the rise running to several Crores. The economic offences are more capable of destablishing the very sustenance of penniless Indian majority than affecting the society at large. When we approach this provision from this angle, we see more reason than one expressed in the words used. But, this is also greatly commented as draconian in nature. But as long as it remains in the Statute Book, it has to be applied with its full vigour and force. 18. So, I am of the considered view that unless the petitioners satisfy the above important condition under Section 45 (1) of the Prevention of Money Laundering Act, they cannot be granted bail even though they are in custody for more than 70 days. 19. In the light of the above discussi....