TaxTMI 
TaxTMI 
2024 (6) TMI 1118
X X X X Extracts X X X X
X X X X Extracts X X X X
....revention of Money Laundering Act, 2002 was initiated by recording the ECIR/RNSZO/16/2020 dated-17.09.2020 against the accused persons on the basis of information received from FIR No. 13/2019 dated-13.11.2019 registered by the ACB, Jamshedpur. 3. Subsequently the Final Report has been filed by the investigating agency bearing no. 01/2020 dated- 11.01.2020 under Section 120-B and 201 IPC and under Section 7 (b) of the P.C. Act, 1988 against the accused persons, namely, Alok Ranjan and Suresh Prasad Verma. 4. Further, in course of search proceeding conducted in relation to the instant case at different places under Section 17 PML Act to investigate the role of the accused persons and their close associates, it is found that part of the proceeds of crime acquired in the form of commission/bribe in lieu of allotment of tenders by the accused Veerendra Kumar Ram, a public servant. The said bribe money was getting routed to the bank accounts of family members of Veerendra Kumar Ram with the help of bank accounts of Delhi based CA Mukesh Mittal 's employees/relatives. 5. It is also ascertained that Veerendra Kumar Ram used to give cash to Mukesh Mittal who with the help of other e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rrest bail but the same was rejected vide order dated 22.07.2023 passed by the court of, learned Additional Judicial Commissioner-XVIII-cum-Special Judge, PML Act, Ranchi. 12. Hence the present applications have been filed. Argument advanced by learned counsel for the petitioners: 13. Mr. Jitendra S. Singh, learned counsel for the petitioners has argued inter alia on the following grounds: I. The petitioners are quite innocent and have falsely been implicated in this case with oblique motive and mala fide intention to harass the petitioners. II. There is no allegation said to be committed so as to attract the offence under Section under Section 3 of the PML Act since there is no allegation of laundering of money against the petitioners. III. In alternate, submission has been made that even if the allegations leveled against petitioners are accepted then also it would not constitute offence under Section 3/ 4 of the PML Act inasmuch as the allegations fall short of the essential ingredients for offence of money laundering. IV. That the Enforcement Directorate has exceeded its jurisdiction in arraigning the petitioners as an accused in the present case when they cannot eve....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Kumar Das, learned counsel for the opposite party - Enforcement Directorate has seriously opposed the said submission/ground both based upon the fact and the law as referred hereinabove. (I) So far as subsequent FIR is concerned, submission has been made that it is incorrect on the part of the petitioner to take the ground that since the first FIR is dated 13.11.2019 and subsequent thereto it was found that the money was being routed in Delhi then the second FIR was instituted on 03.03.2023. Hence, there is no illegality since as per the allegation made in the complaint that the first FIR which is against Alok Ranjan who has informed to be the custodian of the money which was being illegally given by the co-accused Veerendra Kumar Ram. While the second FIR being FIR No. 22/2023 is for investigating the routing of the said money illegally procured by the said Veerendra Kumar Ram. Then in such circumstances, the complaint has been instituted by the Enforcement Directorate, which cannot be said to suffer from any illegality. (II) Further, it has been submitted by referring to the imputation as has come in course of investigation conducted against the present petitioners wherein, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... investment in shares and securities as well as investment in jewelry, gold and silver bullion and in business which clearly established that the said credits were acquired out of Proceeds of Crime generated through commission of criminal activities. (VIII) Further, without prejudice to the arguments raised above, it is submitted that merely declaring income and paying tax without providing a source does not absolve the charges of money laundering. It is an admitted fact that the Petitioner's husband is involved in huge corruption which is base of all the properties acquired by the Petitioner or family members. (IX) Petitioner namely Rajkumari, during her statement u/s 50 of PMLA, has inter alia stated that source of all the funds received in her bank accounts would be explained by husband Veerendra Kumar Ram, and Veerendra Kumar Ram in his statement u/s 50 of PMLA has stated that aforesaid credits are out of the entries received in the said accounts against cash, the source of which was the commission received by Veerendra Kumar Ram which clearly established that the said credits were acquired out of Proceeds of Crime generated through commission of criminal activities. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orcement Directorate, based upon the aforesaid grounds, has submitted that it is not a fit case where the prayer for pre- arrest bail is to be allowed taking into consideration their involvement in directly acquiring the proceeds of crime. Analysis of the submissions made on behalf of parties: 17. This Court has heard the learned counsel for the parties, gone across the pleading available on record as also the finding recorded by learned court. 18. This Court, before appreciating the argument advanced on behalf of the parties, deems it fit and proper to discuss herein some of the provisions of law as contained under the Act, 2002 with its object and intent. 19. The Act was enacted to address the urgent need to have a comprehensive legislation inter alia for preventing money-laundering, attachment of proceeds of crime, adjudication and confiscation thereof including vesting of it in the Central Government, setting up of agencies and mechanisms for coordinating measures for combating money-laundering and also to prosecute the persons indulging in the process or activity connected with the proceeds of crime. 20. The issues were debated threadbare in the United Nation Convention A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h July, 1989, to examine the problem of money-laundering has made forty recommendations, which provide the foundation material for comprehensive legislation to combat the problem of money-laundering. The recommendations were classified under various heads. Some of the important heads are- (i) declaration of laundering of monies carried through serious crimes a criminal offence; (ii) to work out modalities of disclosure by financial institutions regarding reportable transactions; (iii) confiscation of the proceeds of crime; (iv) declaring money-laundering to be an extraditable offence; and (v) promoting international co-operation in investigation of money-laundering. (d) the Political Declaration and Global Programme of Action adopted by United Nations General Assembly by its Resolution No. S-17/2 of 23rd February, 1990, inter alia, calls upon the member States to develop mechanism to prevent financial institutions from being used for laundering of drug related money and enactment of legislation to prevent such laundering. (e) the United Nations in the Special Session on countering World Drug Problem Together concluded on the 8th to the 10th June, 1998 has made another....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country but by way of explanation the proceeds of crime has been given broader implication by including property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. 25. The "property" has been defined under Section 2(1)(v) which means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located. 26. The schedule has been defined under Section 2(1)(x) which means schedule to the Prevention of Money Laundering Act, 2002. The "scheduled offence" has been defined under Section 2(1)(y) which reads as under: "2(y) "scheduled offence" means- (i) the offences specified under Part A of the Schedule; or (ii) the offences specified under Part B of the Schedule if the total value involved in such offences is [one crore rupees] or mor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever. 31. The punishment for money laundering has been provided under Section 4 of the Act, 2002. 32. Section 50 of the Act, 2002 confers power upon the authorities regarding summons, production of documents and to give evidence. For ready reference, Section 50 of the Act, 2002 reads as under: "50. Powers of authorities regarding summons, production of documents and to give evidence, etc.- (1) The Director shall, for the purposes of section 13, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:- (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a [reporting entity] and examining him on oath; (c) compelling the production of records; (d) receiving evidence on affidavits; (e) issuing commissions for examination of witnesses and documents; and (f) any other matter which may be prescribed. (2) The Director, Additional Director, Joint Direct....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctivity connected with the proceeds of crime must be held guilty of offence of money-laundering. If the interpretation set forth by the petitioners was to be accepted, it would follow that it is only upon projecting or claiming the property in question as untainted property, the offence would be complete. This would undermine the efficacy of the legislative intent behind Section 3 of the Act and also will be in disregard of the view expressed by the FATF in connection with the occurrence of the word "and" preceding the expression "projecting or claiming" therein. This Court in Pratap Singh v. State of Jharkhand, enunciated that the international treaties, covenants and conventions although may not be a part of municipal law, the same be referred to and followed by the Courts having regard to the fact that India is a party to the said treaties. This Court went on to observe that the Constitution of India and other ongoing statutes have been read consistently with the rules of international law. It is also observed that the Constitution of India and the enactments made by Parliament must necessarily be understood in the context of the present-day scenario and having regard to the int....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duce any records during the course of any investigation or proceeding under this Act. We have already highlighted the width of expression "proceeding" in the earlier part of this judgment and held that it applies to proceeding before the Adjudicating Authority or the Special Court, as the case may be. Nevertheless, sub-section (2) empowers the authorised officials to issue summon to any person. We fail to understand as to how Article 20 (3) would come into play in respect of process of recording statement pursuant to such summon which is only for the purpose of collecting information or evidence in respect of proceeding under this Act. Indeed, the person so summoned, is bound to attend in person or through authorised agent and to state truth upon any subject concerning which he is being examined or is expected to make statement and produce documents as may be required by virtue of sub-section (3) of Section 50 of the 2002 Act. The criticism is essentially because of subsection (4) which provides that every proceeding under sub-sections (2) and (3) shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the IPC. Even so, the fact remains that Articl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpulsion connotes coercion which procures the positive volitional evidentiary acts of the person, as opposed to the negative attitude of silence or submission on his part. Nor is there any reason to think that the protection in respect of the evidence so procured is confined to what transpires at the trial in the court room. The phrase used in article 20 (3) is "to be a witness" and not to "appear as a witness". It follows that the protection afforded to an accused in so far as it is related to the phrase "to be a witness" is not merely in respect of testimonial compulsion in the court room but may well extend to compelled testimony previously obtained from him. It is available therefore to a person against whom a formal accusation relating to the commission of an offence has been levelled which in the normal course may result in prosecution. Whether it is available to other persons in other situations does not call for decision in this case." (emphasis supplied) 431. In the context of the 2002 Act, it must be remembered that the summon is issued by the Authority under Section 50 in connection with the inquiry regarding proceeds of crime which may have been attached and pending....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the 2002 Act on the basis of other tangible material to indicate the falsity of his claim. That would be a matter of rule of evidence. 434. It is, thus, clear that the power invested in the officials is one for conducting inquiry into the matters relevant for ascertaining existence of proceeds of crime and the involvement of persons in the process or activity connected therewith so as to initiate appropriate action against such person including of seizure, attachment and confiscation of the property eventually vesting in the Central Government. 36. It is evident from the observation so made as above that the purposes and objects of the 2002 Act for which it has been enacted, is not limited to punishment for offence of money-laundering, but also to provide measures for prevention of money-laundering. It is also to provide for attachment of proceeds of crime, which are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceeding relating to confiscation of such proceeds under the 2002 Act. This Act is also to compel the banking companies, financial institutions and intermediaries to maintain records of the transactions, to furni....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to the conditions enshrined under this section. 39. The implication of Section 45 has been interpreted by the Hon'ble Apex Court in Vijay Madanlal Choudhary and Ors. Vs. Union of India and Ors .(supra) at paragraphs-371-374. For ready reference, the said paragraphs are being referred as under: "371. The relevant provisions regarding bail in the 2002 Act can be traced to Sections 44(2), 45 and 46 in Chapter VII concerning the offence under this Act. The principal grievance is about the twin conditions specified in Section 45 of the 2002 Act. Before we elaborate further, it would be apposite to reproduce Section 45, as amended. The same reads thus: "45. Offences to be cognizable and non-bailable.-(1) [Notwithstanding anything contained in the Criminal Procedure Code, 1973 (2 of 1974), no person accused of an offence [under this Act] shall be released on bail or on his own bond unless'] (i) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not like....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... have been mentioned as twin conditions are: (i) that there are reasonable grounds for believing that he is not guilty of such offence; and (ii) that he is not likely to commit any offence while on bail. 373. According to the petitioners, since the twin conditions have been declared to be void and unconstitutional by this Court, the same stood obliterated. To buttress this argument, reliance has been placed on the dictum in State of Manipur. 374. The first issue to be answered by us is: whether the twin conditions, in law, continued to remain on the statute book post decision of this Court in Nikesh Tarachand Shah and if yes, in view of the amendment effected to Section 45 (1) of the 2002 Act vide Act 13 of 2018, the declaration by this Court will be of no consequence. This argument need not detain us for long. We say so because the observation in State of Manipur in paragraph 29 of the judgment that owing to the declaration by a Court that the statute is unconstitutional obliterates the statute entirely as though it had never been passed, is contextual. In this case, the Court was dealing with the efficacy of the repealing Act. While doing so, the Court had adverted to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ions enumerated in Section 45 of PML Act will have to be complied with even in respect of an application for bail made under Section 439 Cr. P.C. in view of the overriding effect given to the PML Act over the other law for the time being in force, under Section 71 of the PML Act." 41. The Hon'ble Apex Court in the said judgment has further laid down that the twin conditions so as to fulfil the requirement of Section 45 of the Act, 2002 before granting the benefit of bail is to be adhered to which has been dealt with by the Hon'ble Apex Court in Vijay Madanlal Choudhary and Ors. Vs. Union of India and Ors.(supra) wherein it has been observed that the accused is not guilty of the offence and is not likely to commit any offence while on bail. 42. In the judgment rendered by the Hon'ble Apex Court in Vijay Madanlal Choudhary and Ors. Vs. Union of India and Ors.(supra) as under paragraph-284 thereof, it has been held that the Authority under the 2002 Act, is to prosecute a person for offence of money-laundering only if it has reason to believe, which is required to be recorded in writing that the person is in possession of "proceeds of crime". Only if that belief is further supported ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e proceeds of crime are not involved, lies on the appellant. For ready reference, paragraph-30 of the said judgment reads as under: "30. The conditions specified under Section 45 of PMLA are mandatory and need to be complied with, which is further strengthened by the provisions of Section 65 and also Section 71 of PMLA. Section 65 requires that the provisions of CrPC shall apply insofar as they are not inconsistent with the provisions of this Act and Section 71 provides that the provisions of PMLA shall have overriding effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. PMLA has an overriding effect and the provisions of CrPC would apply only if they are not inconsistent with the provisions of this Act. Therefore, the conditions enumerated in Section 45 of PMLA will have to be complied with even in respect of an application for bail made under Section 439 CrPC. That coupled with the provisions of Section 24 provides that unless the contrary is proved, the authority or the Court shall presume that proceeds of crime are involved in money-laundering and the burden to prove that the proceeds of crime are not involved, lies on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sh belongs to Veerendra Kumar Ram and alleged that Veerendra Kumar Ram himself and his wife Rajkumari used to visit Alok Ranjan at the rented premises and Alok Ranjan is cousin of Veerendra Kumar Ram. 4.1.2 During the course of investigation, Suresh Prasad Verma had also submitted a call recording vide email dated 31.01.2022 between Kapil Dev Yadav, Pushpa Verma and son of Suresh Prasad Verma In the said call recording, Kapil Dev Yadav was confronted by Pushpa Verma several times with the fact that Kapil Dev Yadav brought Alok Ranjan, Veerendra Kumar Ram, Rajkumari (wife of Veerendra Kumar Ram) and others for taking the said portion of house at 1st floor on rent. Kapil Dev Yadav did not deny the said fact in the said call recording. 7.1 EVIDENCES GATHERED DURING THE COURSE OF SEARCH PROCEEDING U/S 17 OF THE PMLA WHICH ESTABLISHES ALOK RANJAN'S ASSOCIATION WITH VEERENDRA KUMAR RAMAND HIS INVOLVEMENT IN THE PROCESS OF MONEY LAUNDERING In fact, during the course of post search investigation under the PMLA, it is ascertained that Alok Ranjan used to go to Delhi with Veerendra Kumar Ram during the year 2019. Veerendra Kumar Ram himself in his statement dated 15.04.2023 has accepte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....01759) dated 03.02.2020 wherein Anoop Kumar Rai has sent Veerendra Kumar Ram one message that "3 crore taken away by Bablu Singh by fortuner" and also sent two vehicle detail one of Innova JH 05 CC 1000 and other of Toyota Fortuner bearing Registration no. JH0SCM1000, to Veerendra Kumar Ram through WhatsApp. Further Anoop Kumar Rai was summoned and statement of Anoop Kumar Rai, one of the contractors for mechanical works, was recorded u/s 50 on 07.04.2023 wherein he was asked to explain the context of said messages and, in reply to which, he stated that he sent details of these two vehicles because he has not seen any previous Chief Engineer using such high-end vehicles so he just asked Veerendra Kumar Ram to be cautious. Anup Kumar Rai further stated in his statement dated 05.04.2023 that he is aware of the fact that Veerendra Kumar Ram used to keep money at the premises of Alok Ranjan where the search was conducted on 15.11 2019 by ACB. He further stated in his statement dated 07.04.2023 that there was a discussion in the office of WRD Chandil Complex that Bablu (Rajesh Kumar was found near the search premises on the date of the search ie on 15.11.2019 conducted by ACB Jamshedpur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and Singh Builders Pvt Ltd was recovered. Mr. Rajesh Kumar is the director in both the companies namely M/s Rajesh Kumar Constructions Pvt. Ltd and M/s Parmanand Singh Builders Pvt Ltd. In this regard, Veerendra Kumar Ram in his statement dated 24.02.2023 stated that during Covid period he was avoided travel via flights and trains and so he required a four-wheeler to reach Delhi. Therefore, he contacted Rajesh Kumar (one of the contractors) who provided him the above-mentioned Toyota Fortuner He further stated that since he returned by train, therefore, the said vehicle remained in Delhi. Thus, Fortuner was intentionally left in Delhi and story in relation to avoid covid is afterthought to justify the act and such vehicles were provided by Rajesh Kumar to Veerendra Kumar Ram as Veerendra Kumar Ram has allotted many tenders to the companies/firm of Rajesh Kumar, which he later himself has disclosed in his statement dated 07.04.2023. Further, Veerendra Kumar Ram could not explain the reason for using the above- mentioned Toyota Innova for 2 years and stated that he was using this vehicle for his official duty and he had even allotted a tender to the company of Rajesh Kumar recently. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ia, the aforementioned bank account of Genda Ram (father of Veerendra Kumar Ram and also uncle of accused Alok Ranjan) surfaced which we opened on 12.12.2022 and the account received high valued funds As the bank accounts of Rakesh Kumar Kedia. Further investigation revealed that huge wars has been received in the thank account of Genda Ram recently in 30 days anil same was used in purchasing an immovable property at Land measuring 2 bigha, 8 biswa comprised to Khasra No 770 Min (1-06)778 Min (1-2) with all the amenities situated in village satbari known as E-8 Satbari Ansal, Tehsil Saket, New Delhi. 7.4.12----- Thus, it is found that a total of Rs 4.435 crores, transferred from bank account of Rakesh Kumar Kedia, Manish, Neha Shrestha and Genda Ram a/ no 110089477752) into the bank a/c of Genda Ram 127000628767) and out of this sum of Rs. 4.43 crores, a sum of Rs. 3.39 crores was funded from three proprietorship bank accounts, namely (i) Shri Khatushyam Traders (079205500560), (ii) Anil Kumar Govind Ram Traders and (082705001671) (iii) Om Traders (072405001740) & Rs 13 lakhs from one bank account of Tarachand. All these bank a/c of three proprietorship are being maintained in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which he could not explain satisfactorily. He along with his family were having lavish lifestyle and he accepted that all the expenses have been incurred by him through commission amount received by him against allotment of tenders. Further, in his statement he accepted that the cash deposits in his bank accounts and in the bank accounts of his family members, 3 immovable properties in Delhi, 4 luxury cars, jewellery, cash seized from him and his family members during the course of search of 21.02.2023 are out of the commission received by him against allotment of tenders. 8.2 Genda Ram (Accused No. 4): Genda Ram is father of Veerendra Kumar Ram who is a retired school teacher and is aged about more than 82 years. Statement of Genda Ram was recorded u/s 17 of PMLA on 21.02.2023 wherein he stated that his son could explain the transactions executed in his Canara Bank account and he was unaware of any properties purchased in his name. However, his signatures were found on all the cheques that were used to purchase the property located at E-8, Satbari Ansal, New Delhi. 8.3 Ayush Rapson: Ayush Rapson is son of Veerendra Kumar Ram and his statement was recorded u/s 50 on 31.03.2023....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ried from 0.3% to 1% of tender value. A contractor named Mahendra Gope stated that he usually had a percentage of 10%, a contractor Rajesh Kumar stated that he had paid him commission not below 3% of the tender amount and further one contractor stated that he had to pay commission of 14% to Veerendra Kumar Ram. Apart from the commission, Veerendra Kumar Ram and his wife Rajkumari also availed various facilities and vehicles from the contractors which was further proved from the three vehicles frozen registered in the name of contractors/companies. Various contractors have stated that they frequently receive calls from the Rajkumari and Veerendra Kumar Ram to provide vehicles and other facilities to her. f) The claim of Veerendra Kumar Ram with regard to securing loan from contractors named Rajesh Kumar Megotia, MahendraGope and Ajeet Singh was also found misleading as two of these contractors have simply denied of giving loans to him and even one contractor Mahendra Gope stated that he used to safekeep the commission money on the instructions of Veerendra Kumar Ram. g) Therefore, Accused No. 1 i.e. Veerendra Kumar Ram has directly indulged in the process of acquisition, possess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....res respectively which was actually the proceeds of crime generated by Veerendra Kumar Ram which subsequently were routed to her bank account and further paid through the banking channel to the respective first part thereby projecting the untainted money as tainted. She also used to live a lavish lifestyle which also got confirmed from the statements of various contractors. It was also established that Rs. 3.28 crores and Rs. 6.3 crores were directly given in cash for the afore stated properties. (b) Hence, Rajkumari has directly indulged in the process of possession, concealment, & use of proceeds of crime to the tune of at least Rs 19.02 crores and also knowingly assisted Veerendra Kumar Ram in projecting the same as untainted. Hence, the accused person Rajkumari has committed the offence of Money Laundering as defined under section 3 of PMLA and is, therefore, liable to be punished under section 4 of PMLA, 2002. 11.4 Accused No. 4 - Genda Ram a) Genda Eam is father of Veerendra Kumar Ram and is a retired school teacher who receives pension to the tune of less than Rs. 25,000/- per month. He knowingly assisted his son to purchase immovable properties at Chhatarpur, New Delh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he petitioner knowingly assisted to her husband who is co-accused to purchase immovable properties at New Delhi in her name and the purchase consideration was paid from the proceeds of crime generated by her husband Veerendra Kumar Ram. The petitioner knowingly tried to directly conceal the proceeds of crime acquired by her husband and claimed it to be untainted in the guise of taking entries in her bank accounts from the companies providing entries by charging commission. The materials on record reflects that bank account statements of the petitioner, there are huge credits from M/s RP Investment and Consultancy, Manoj Kumar Singh and M/s RK Investment & Consultancy. The co- accused Veerendra Kumar Ram has admitted in his statement under section 50 of PML Act 2002 that these credits are out of the entries received in the said accounts against cash, the source of which was the commission received to him. There are materials against the present petitioner regarding her specific role in the offence which is mentioned at Para-11.3 of the prosecution complaint that she committed the offence of money laundering with respect to the proceeds of crime. 48. The petitioner namely Genda Ram ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....investigation of an offence and hence, the court must be cautious while exercising such powers. 52. It is also settled connotation of law that the grant or refusal of the application should necessarily depend on the facts and circumstance of each case and there is no hard and fast rule and no inflexible principles governing such exercise by the Court. 53. It is pertinent to mention here that the law on grant of anticipatory bail has been summed up by the Hon'ble Apex Court in Siddharam Satlinappa Mhetre vs. state of Maharashtra & Ors. reported in (2011)1 SCC 694 after due deliberation on the parameters as evolved by the Constitution Bench in Gurubaksh Singh Sibbia vs. State of Punjab reported in (1980) 2 SCC 565. The relevant paragraphs of the said judgment as rendered by the Hon'ble Apex Court is being quoted hereunder:- "111. No inflexible guidelines or straitjacket formula can be provided for grant or refusal of anticipatory bail. We are clearly of the view that no attempt should be made to provide rigid and inflexible guidelines in this respect because all circumstances and situations of future cannot be clearly visualised for the grant or refusal of anticipatory bail. In c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....considered in the matter of grant of bail and in the event of there being some doubt as to the genuineness of the prosecution, in the normal course of events, the accused is entitled to an order of bail. 114. These are some of the factors which should be taken into consideration while deciding the anticipatory bail applications. These factors are by no means exhaustive but they are only illustrative in nature because it is difficult to clearly visualise all situations and circumstances in which a person may pray for anticipatory bail. If a wise discretion is exercised by the Judge concerned, after consideration of the entire material on record then most of the grievances in favour of grant of or refusal of bail will be taken care of. The legislature in its wisdom has entrusted the power to exercise this jurisdiction only to the Judges of the superior courts. In consonance with the legislative intention we should accept the fact that the discretion would be properly exercised. In any event, the option of approaching the superior court against the Court of Session or the High Court is always available." 54. In Sushila Aggarwal v. State (NCT of Delhi) reported in (2020) 5 SCC 1 the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ors.(supra) has taken into consideration while dealing with the issue of anticipatory bail by taking aid of the judgement rendered by the Hon'ble Apex Court in P. Chidambaram vs. Directorate of Enforcement, (2019) 9 SCC 24 wherein it has been observed at paragraph-409 which reads as under: "409. In P. Chidambaram, this Court observed that the power of anticipatory bail should be sparingly exercised in economic offences and held thus: "77. After referring to Siddharam Satlingappa Mhetre and other judgments and observing that anticipatory bail can be granted only in exceptional circumstances, in Jai Prakash Singh v. State of Bihar, the Supreme Court held as under : (SCC p.386, para 19) "19. Parameters for grant of anticipatory bail in a serious offence are required to be satisfied and further while granting such relief, the court must record the reasons therefor. Anticipatory bail can be granted only in exceptional circumstances where the court is prima facie of the view that the applicant has falsely been enroped in the crime and would not misuse his liberty. (See D.K. Ganesh Babu v. P.T. Manokaran, State of Maharashtra v. Mohd. Sajid Husain Mohd. S. Husain and Union of In....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ew, grant of anticipatory bail to the appellant will hamper the investigation and this is not a fit case for exercise of discretion to grant anticipatory bail to the appellant." (emphasis supplied) 58. It is evident from the reference so made in the case of P. Chidambaram vs. Directorate of Enforcement (supra) which has been taken note by the Hon'ble Apex Court in Vijay Madanlal Choudhary and Ors. Vs. Union of India and Ors. (supra) taking the principle to be applied for consideration of pre-arrest bail under Section 438 of Cr.P.C. in the matter of economic offence has also been dealt with at paragraph-84 of the aforesaid judgment. The specific condition has been made in the case of money laundering where it involves many stages of "placement", "layering i.e. funds moved to other institutions to conceal origin" and "interrogation i.e. funds used to acquire various assets", it requires systematic and analysed investigation which would be of great advantage. 59. The Hon'ble Apex Court by making reference of the judgment rendered by the Hon'ble Apex Court in State rep. by the CBI vs. Anil Sharma, (1997) 7 SCC 187, has been pleased to hold that success in such interrogati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing agency etc., would be material considerations. 64. It is pertinent to mention here that the similar provision for granting bail to the category of persons below the age of sixteen years, women, sick or infirm has been stipulated in Section 437 of Criminal Procedure Code and many other special enactments also, but if such provision be construed as an obligatory or mandatory in nature, then all serious offences under such special Acts would be committed involving women and persons of tender age below 16 years. 65. Recently, a Three-Judge Bench of the Hon'ble Apex court in the case of Enforcement Directorate v. Preeti Chandra has observed in the order dated 04.08.2023 in SLP (Crl.) No. 7409 of 2023 as under: - "The proviso to Section 45 of the Prevention of Money Laundering Act, 2002 confers a discretion on the Court to grant bail where the accused is a woman. Similar provisions of Section 437 of the Criminal Procedure Code, 1973 have been interpreted by this Court to mean that the statutory provision does not mean that person specified in the first proviso to sub-section (1) of Section 437 should necessarily be released on bail. (See Prahlad Singh Bhati v. NCT, Delhi (2001) 4....