TaxTMI 
TaxTMI 
2025 (1) TMI 1450
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....IR No. 59/2024 dated 12th March, 2024, registered at Police Station - Crime Branch, Delhi for offences punishable under Sections 274, 275, 276, 420, 468, 471 read with 120B and 34 of the Indian Penal Code, 1860 (hereinafter "IPC"). 2. The brief facts that led to the filing of the instant application are that on 12th March, 2024, FIR No. 59/2024 was registered at Police Station - Crime Branch, Delhi under Sections 274, 275, 276, 420, 468, 471 read with 120B of the IPC, based on a complaint by SI Gulab Singh. The complaint alleged the involvement of several accused persons in the procurement, manufacturing and sale of spurious anti-cancer medicines. 3. In the said FIR, it has been alleged that the primary accused, namely Viphil Jain and Suraj Shat, in collusion with their several associates, were engaged in the illegal procurement of empty vials and raw materials of anti-cancer drugs such as Keytruda and Opdyta. These counterfeit drugs were allegedly manufactured and distributed in the market to unsuspecting cancer patients. 4. Pursuant to the information received, the police formed six teams to conduct simultaneous raids across Delhi-NCR on 11th March, 2024. During the raid....
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.... of the twin conditions under the main provision of Section 45 of the PMLA are not applicable and the applicant is entitled to bail under the relaxed conditions laid down in the proviso. He has placed his reliance on judgements titled Amit Katyal v. Union of India, 2024 SCC OnLine Del 1909, Rajeev Sharma v. Enforcement Directorate, (2022) 1 HCC (Del) 66 and Sidhique Kappan v. Directorate of Enforcement, 2022 SCC OnLine All 898. 10. It is submitted that the applicant had no knowledge or intent to commit the alleged offence and is nowhere implicated in the commission of the scheduled offence under FIR No. 59/2024. The applicant was initially named as a prosecution witness, and his name appears at Serial No. 4 in the list of witnesses in the charge sheet. This clearly indicates that he was not considered an accused in the scheduled offence and had no direct role in its commission. It is further submitted that the Hon'ble Supreme Court in Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1 has held that at the stage of bail under PMLA, the primary consideration is whether the accused possessed the requisite mens rea, and the Court is not required to record a positive finding....
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.... of the trial and therefore, the applicant is entitled for bail. The Hon'ble Supreme Court in Javed Gulam Nabi Shaikh v. State of Maharashtra and Another, 2024 SCC OnLine SC 1693, has reiterated that prolonged incarceration during pending trials violates the fundamental right to a speedy trial under Article 21 of the Constitution. 15. It is submitted that the applicant satisfies the triple test for bail as he has roots in society and is not a flight risk, has no propensity to tamper with evidence considering that the entire evidence is documentary and in the custody of the investigating agency and the applicant is willing to abide by any conditions imposed by this Court. 16. It is submitted that the alleged violations/offence primarily fall under the Drugs and Cosmetics Act, 1940, which does not fall under the scheduled offences of the PMLA. The alleged sale of medicines without invoices is governed by Section 27 of the Drugs and Cosmetics Act, 1940 which prescribes specific penalties for such violations. Reliance in this regard has been placed on the judgment of the Hon'ble Supreme Court in Union of India v. Ashok Kumar Sharma, (2021) 12 SCC 674, wherein, it was held that re....
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....iscretionary relief of bail. 24. It is submitted that the applicant had full knowledge of the illicit nature of the transactions and was actively involved in the purchase and sale of spurious drugs without proper authorization or invoices. The applicant collaborated with co-accused Viphil Jain, Neeraj Chauhan, and Tushar Chauhan in the organized network of counterfeit drug distribution, as evidenced by bank transactions, statements, and seized records. The applicant's transactions were deliberately structured to conceal the source of illicit funds, making him complicit in the offence of money laundering. 25. It is submitted that the applicant has a history of criminal involvement, having been previously arrested in FIR No. 394/2021, registered at PS Punjabi Bagh under Sections 420, 384, 188, 240, 269 and 270 of the IPC read with Section 3 of the Epidemic Diseases Act, 1897 for hoarding controlled medication during the COVID-19 pandemic. Despite being on bail in that case, the applicant engaged in the present offence, demonstrating a continued propensity to commit economic crimes, thus making him ineligible for bail. 26. It is submitted that under the provisions of the ....
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.... 31. It is submitted that the PMLA attributes liability not just to the individual but also to all the conspirators involved in the offence. Since the proceeds of crime generated from the scam benefit all the accused persons directly or indirectly, the applicant herein cannot claim immunity based on the quantum of money involved in his specific transactions as the offence in the present ECIR has been committed by a group of individuals, thereby, forming a syndicate ultimately generating proceeds of crime more than the prescribed threshold. The applicant, by his active participation, is liable for the entire proceeds of crime, and thus, the instant bail application may be rejected. 32. It is also submitted that the applicant herein cannot seek exemption from the rigors of Section 45 of the PMLA by stating that the proceeds of crime attributed to him is less than Rs. 1 Crore. It is further submitted that the totality of the crime and entire transactions which have been funneled among all the accused persons, have to be taken into consideration for the constitution of offence under Section 45 of the PMLA. 33. Therefore, in view of the foregoing submissions, it is prayed that th....
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.... shall, as soon as may be, inform him of the grounds for such arrest. (2) The Director, Deputy Director, Assistant Director or any other officer shall, immediately after arrest of such person under sub-section (1), forward a copy of the order along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such order and material for such period, as may be prescribed. (3) Every person arrested under sub-section (1) shall, within twenty-four hours, be taken to a [Special Court or] Judicial Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the [Special Court or] Magistrate's Court." 39. The following ingredients can be culled out from the reading of Section 19 (1) of the PMLA: firstly, the officer concerned must have some "material in his possession". Secondly, on the basis of such material, the officer should have a 'reason to believe' that any person has be....
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....ssession, in a sealed cover to the adjudicating authority, who in turn is obliged to preserve the same for the prescribed period as per the Rules." 43. Further in the case of V. Senthil Balaji v. State, (2024) 3 SCC 51, the Hon'ble Supreme Court has explained the mandate of Section 19 of PMLA by observing the following: "40. To effect an arrest, an officer authorised has to assess and evaluate the materials in his possession. Through such materials, he is expected to form a reason to believe that a person has been guilty of an offence punishable under the PMLA, 2002. Thereafter, he is at liberty to arrest, while performing his mandatory duty of recording the reasons. The said exercise has to be followed by way of an information being served on the arrestee of the grounds of arrest. Any non-compliance of the mandate of Section 19 (1) of the PMLA, 2002 would vitiate the very arrest itself. Under sub-section (2), the authorised officer shall immediately, after the arrest, forward a copy of the order as mandated under sub-section (1) together with the materials in his custody, forming the basis of his belief, to the adjudicating authority, in a sealed envelope. Needless to ....
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....half of the applicant that his arrest was conducted in a mechanical manner without recording specific reasons for belief of guilt. The grounds of arrest, as communicated, were allegedly a verbatim reproduction of statutory language without reference to specific material evidence. 47. Conversely, the respondent argues that the arrest was made after due consideration of financial records and electronic evidence establishing the applicant's role in laundering proceeds of crime. It has been submitted that all statutory requirements were met and that the arrest was necessary to prevent the tampering and destruction of evidence and influence over witnesses. 48. In assessing the legality of the applicant's arrest, this Court must carefully examine the role assigned to the accused applicant herein which led to his arrest and ultimately to the present bail application. The relevant extract of the first supplementary prosecution complaint is as under: "...6.5 Lovee Narula (Retailer of medicine business) On scrutiny of the bank account statement of Lavee Narula bearing account no. 194401500829 (RUD-60) maintained with ICICI Bank, it is noticed that an amount of Rs. ....
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....count of Viphil Jain. Further an amount of Rs. 30,03,500/- were transferred to the bank account of Viphil jain during 2022 and 2023. Therefore in total 57 vials of Opdyta Injection were purchased from Viphil Jain by Lovee Nanlla and the same were sold in open market thereby earning a profit of Rs. 2,85,000/-. Therefore, in total, Lovee Narula earned profit to the tune of Rs. 7,45,000/- from the sale of spurious anti-cancer medicines and is thereby is in possession of proceeds of crime to the tune of Rs. 7,45,000/-. Further, Lovee Narula in his statement recorded during the custodial interrogation stated that he purchased spurious anticancer medicine i.e Keytruda Injection from Neeraj Chauhan at an average price of Rs. 1,20,000/- per vial and payment for the same was made in the bank accounts of Neeraj Chauhan and Tushar Chauhan. Therefore, total amount of Rs. 55,95,500/was transferred as sale proceeds of spurious anti-cancer medicine i.e Keytruda Injection. Therefore, in total, 46 vials of spurious Keytruda Injection were purchased by Lovee Narula during the relevant period. Further Lovee Narula in his statement stated that he earned profit of Rs. 10,000/- per vial of Keyt....
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....eading of the role assigned to the applicant herein, that the generated proceeds of crime were allegedly transferred to the accounts of the associates and their family members and the applicant played a significant role. This shows the role of the applicant in money laundering and distribution of the illicit gains, and thus, the offence under the PMLA is prima facie committed. 52. The investigating authority has also relied on statements of Viphil Jain, Tushar Chauhan and Neeraj Chauhan recorded under the Section 50 of the PMLA. As per the material available on record, on 5th April, 2024, the applicant, in his statement, admitted to paying Viphil Jain from his ICICI Bank account for spurious injections without invoices which were delivered to his shop and then sold to patients. He also admitted to purchasing spurious Keytruda injections from Neeraj Chauhan without invoices, making payments to Neeraj Chuahan's accounts with Axis Bank and HDFC Bank. 53. Furthermore, on 17th April, 2024, co-accused Viphil Jain, in his statement under Section 50 of the PMLA, claimed that the applicant herein bought unsealed vials of anticancer drugs without invoices and payment of the same was ma....
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....e financial trail of the proceeds of crime in the instant matter. The same goes to show that the respondent ED has corroborating evidence on its record to justify the implication of the applicant herein. 59. This Court is satisfied that the respondent ED has considered independent material, including financial records, digital evidence, and the applicant's own communications, which substantiate the applicant's involvement in the alleged offence. 60. Having examined the factual matrix and the evidence placed on record, this Court must now turn its attention to the statutory framework of Section 50 governing the evidentiary value of statements recorded under the PMLA. The said provision reads as under: "Section 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 entit....
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.... application of Section 50 of the PMLA, the core question that now arises for consideration is whether the statements recorded under this provision are admissible as evidence and to what extent they can be relied upon to justify the applicant's arrest and continued detention. 64. The Hon'ble Supreme Court in Rohit Tandon v. Directorate of Enforcement, (2018) 11 SCC 46 made the following observations regarding the admissibility of statements recorded under Section 50 of the PMLA: "We have independently examined the materials relied upon by the prosecution and also noted the inexplicable silence or reluctance of the appellant in disclosing the source from where such huge value of demonetised currency and also new currency has been acquired by him. The prosecution is relying on statements of 26 witnesses/accused already recorded, out of which 7 were considered by the Delhi High Court. These statements are admissible in evidence, in view of Section 50 of the 2002 Act. The same makes out a formidable case about the involvement of the appellant in commission of a serious offence of money laundering. It is, therefore, not possible for us to record satisfaction that there are r....
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...., being recorded during an inquiry rather than an investigation, are not subject to the restrictions under Article 20(3) and Article 21 of the Constitution. Instead, they are deemed to be judicial proceedings under Section 50(4) of the PMLA and, therefore, admissible as evidence in proceedings under the PMLA. The Hon'ble Court further clarified that the provisions of Section 50 of the PMLA having an overriding effect by virtue of Sections 65 and 71 of the PMLA prevail over the CrPC in case of any contradictions. 68. Accordingly, this Court is of the considered view that statements recorded under Section 50 of the PMLA are admissible in evidence and can be relied upon to establish culpability in money laundering cases. 69. Having examined the admissibility of statements recorded under Section 50 of the PMLA, this Court shall now proceed to analyze the statutory framework governing the burden of proof in proceedings related to proceeds of crime. "24. Burden of proof. --In any proceeding relating to proceeds of crime under this Act, -- (a) in the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall, unless ....
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....rson concerned is, directly or indirectly, involved in any process or activity connected with the said property being proceeds of crime. On establishing the fact that there existed proceeds of crime and the person concerned was involved in any process or activity connected therewith, itself, constitutes offence of money-laundering. The nature of process or activity has now been elaborated in the form of Explanation inserted vide Finance (No. 2) Act, 2019. On establishing these foundational facts in terms of Section 24 of the 2002 Act, a legal presumption would arise that such proceeds of crime are involved in money-laundering. The fact that the person concerned had no causal connection with such proceeds of crime and he is able to disprove the fact about his involvement in any process or activity connected therewith, by producing evidence in that regard, the legal presumption would stand rebutted. *** 239. Be it noted that the legal presumption under Section 24 (a) of the 2002 Act, would apply when the person is charged with the offence of money-laundering and his direct or indirect involvement in any process or activity connected with the proceeds of crime, is es....
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....n of a scheduled offence must be established. Second, the property in question must be shown to have been derived or obtained, directly or indirectly, as a result of such criminal activity and third, the accused must be linked, directly or indirectly, to any process or activity connected with the proceeds of crime. 75. At this stage, this Court deems it imperative to refer to the statements of Lovee Narula, Neeraj Chauhan, Tushar Chauhan and Viphil Jain. The relevant extracts are as under: "..5.2.1 Statements of Viphil Jain were recorded on 08.04.2024, 10.04.2024, 11.04.2024, 12.04.2024, 13.04.2024, 14.04.2024, 16.04.2024, 17.04.2024 and 18.04.2024 under section 50 of the PMLA, 2002; wherein he stated inter-alia that (RUD-8) Summons dated 08.04.2024 were issued to Viphil Jain and statement of Shri Viphil Jain was recorded on 08.04.2024in the Tihar Jail premises. Thereafter, Shri Viphil Jain was arrested u/s 19 of PMLA, 2002 on 08.04.2024. On 09.04.2024, Viphil Jain was produced before the Hon'ble Special Judge, PMLA, 2002, the Hon'ble Court allowed ED Custody of Viphil Jain for 14 days till 23.04.2024. During the recording of statements, Viphil Jain stated inte....
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....that time, he had cash in hand of Rs. 50,00,000/- approximately. Therefore, he met Gaurav Garg and requested him to provide him credit entries in his as well in his wife's bank account in lieu of Cash. Gaurav Garg agreed to receive Cash i.e. Rs. 49,00,000/- and also agreed to provide credit entries in the bank account of his wife's bank account as well as his bank account. In lieu of the said Cash amount i.e. Rs. 49,00,000/-, Gaurav Garg provided credit entries of Rs. 34,00,000/- (inclusive of TDS) into the bank account of his wife Deepali Jain and credit entries of Rs. 15,00,000/- (inclusive of TDS) into the bank account of Viphil Jain; ix. He had deposited the sale proceeds of spurious anti-cancer medicines, received in cash, in the bank account of Suraj Shat and thereafter, as and when required, Suraj Shat used to transfer funds to the bank accounts provided to him by Viphil Jain. Further, he disclosed that he had also used sale proceeds of spurious anti-cancer medicines to purchase a new Car Toyota Fortuner in the name of his wife Deepali Jain. x. That, Viphil Jain received funds of Rs. 42,02,100/- from Lovee Narula Rs. 19,52,500 from Aditya Krishna and Rs. 5,....
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.... in cash. xvi. He stated that he is unable to recall how many numbers of vials of anti-cancer medicines were purchased and sold by him so far. He also could not tell how much spurious/ fake anti- cancer medicines were prepared by him. *** 5.4.1 Statements of Neeraj Chauhan S/o Sh. Gopi Chand were recorded on 08.04.2024, 10.04.2024, 12.04.2024, 13.04.2024, 14.04.2024, 15.04.2024, 17.04.2024, 20.04.2024 and 21 20.04.2024 under section 50 of the PMLA, 2002, wherein he stated inter-alia that: (RUD-17) Summons dated 08.04.2024 was issued to Sh.Neeraj Chauhan and statement of Sh. Neeraj Chauhan was recorded on 08.04.2024 in the Tihar Jail premises. Thereafter, Sh. Neeraj Chauhan was arrested u/s 19 of PMLA, 2002 on 08.04.2024. On 09.04.2024, Neeraj Chauhan was produced before the Hon'ble Special Judge, PMLA, 2002, the Hon'ble Court allowed ED Custody of Neeraj Chauhan for 14 days till 23.04.2024. During the statement of Neeraj Chauhan he inter alia stated : i. That he completed his Graduation from Jat College Baraut, UP in 2001-02. After completion of his Graduation, he joined Paras Hospital, Sec - 43, Gurugram Sushant Lok, thereafter in 2009 ....
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....December, 2023, Aditya Krishna met him in thehouse of Viphil Jain during a "Jagran-Keertan" and told that he wanted to purchase fake and spurious anti-cancer medicines. Neeraj Chauhan used to sell fake and spurious anti-cancer medicines like Keytruda 100 mg Darzalax 400mg etc to Mr. Aditya Krishna till end of February, 2023. vi. That, he also used to purchase these fake and spurious anticancer medicines and sell the same to Mr Gagan Khurana through Mr Tushar Chauhan. vii. That, Crime Branch, Delhi Police recovered and seized Rs. 89 lacs and 18000 USD from house of Neeraj Chauhan. Apart from this, various spurious vails/ empty vials/ empty boxes of anti-cancer medicines viz. Keytruda, Opdyta etc were recovered and seized from his house during the search proceedings of Crime Branch, New Delhi. He also stated that the said spurious/ fake/ empty vials of anti-cancer medicines were procured from Sh. Rohit Bisht, Sh. Jitender Dahiya, Sh. Majid Khan and Sh. Rehan. Neeraj Chauhan could not explain source of seized forex to the tune of USD 18000/- from his house. viii. That, he stated that end use of such recovered empty vials/ boxes was re-labeling and re-capping....
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....edical bill in INR. He also stated that later he used to sold such exchanged USD in the open market at higher rate. xv. That, he was shown his whatsapp chat with ;Rohit Venkateshwara' and asked to explain chats. He replied that ;Rohit Venkateshwara' is Rohit Bisht and the said chat represents that Rohti Bisht used to supply cap of vials of Keytruda, Trecentiq, Perjeta, Opdyta @ Rs. 1000/- per vial. xvi. That, whats app chat between Neeraj Chauhan and Ayansh Sharma with regards to sale-purchase of anti-cancer medicine was shown to him, wherein he replied that he sold some anticancer medicines viz. Opdyta to Ayansh Sharma without bill. xvii. That, whats app chat between Neeraj Chauhan and ;Narula Janakpuri Medicine', wherein he replied that Narula Janakpuri Medicine is actually the chat with Lovee Narula. Lovee Narula is into trading medicines through Imperial Mart. Lovee Narula is also engaged in Import of medicines from Turkey, Russia, USA etc. On seeing the chat with ;Narula Janakpuri Medicine', he stated that Lovee Narula requested vials of Opdyta anticancer medicines without any bill or invoice. On demand of Lovee Narula, he sold vials of anti-cancer m....
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....in 2017 from Kings College, London. He has started 01 startup viz. Your Medikart. ii. He knew Viphil Jain as Viphil Jain was also working for Mis Pious tree Pharma and also working as an Operation Theatre Technician in Rajiv Gandhi Hospital. iii. He met Neeraj Chauhan in 2016 in Mis Paras Hospital wherein he was working as an attendant. Thereafter, he and Neeraj Chauhan used to meet frequently. Neeraj Chauhan informed him that he used to supply Keytruda Injection for the cancer patients and asked him to inform him about the need for any Keytruda Injection. Thereafter, whenever he got the requirement for Keytruda Injection in his shop i.e. Mis Narula Associates, he would convey the same to Neeraj Chauhan and he used to deliver the Keytruda injection to the patient directly. He further stated that he used to pay the amounts for the said Keytruda Injection into the accounts of Viphil Jain, Tushar Chauhan and sometimes in cash. iv. He also knew Aditya Krishna through his friend named Sh. Sagar Mehta, Mumbai. v. He doesn't have any bill for the medicines purchased from Viphil Jain as he never provided him the bills for the medicines. Also, he does....
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....ho is specialized in Solid tumors and lymphomas; that this medicine is approved for 18types of tumors in which MSD gives schemeof one plus one free injection to the patient falling under this category; there are only one or two distributors allotted by MSD in every urban state from where patient can buy these injection. The official price per 100 mg injection is Rs. 1,63,000/- whose MRP is Rs. 1,97,000/- and on buying this patient gets another free of cost as Keytruda works only when 200 mg (2 injection) is given to the patient. Once medicine is prescribed and patient buys 1 injection from authorized distributor, he/ she gets enrolled in patient assistance program where patient gets 100 mg free injection from MSD. Also the patient should be diagnosed with 16 indicated treatments and lastly he/ she should be Indian xii. He also imported anti-cancer medicines for patients, therefore he was asked procedure for importing anti-cancer medicines, wherein he replied that he imports medicine for patients which are not available or being marketed in India or they come under rare drugs category. xiii. He stated that he used to purchase the Keytruda Injection vial from Neeraj....
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....orded on 25.06.2024. 03.07.2024 and 04.07.2024 in ED Custody u/s 50 of PMLA, 2002. wherein he stated inter-alia that: (RUD-50) i. he completed DMLT (Diploma in Medical Laboratory Technician) in 2018. He joined AIIMS hospital, Delhi as Lab Attendant in 2019 through a firm BECIL as outsourcing staff. He used to get a salary Rs. 15,000/per month from BECIL. ii. he left this job on 25.01.2023 because his cousin Neeraj Chauhan offered him better salary i.e. Rs. 75,000/- per month. Neeraj Chauhan used to give him salary Rs. 45,000/- from Mis Futura Global Health and Neeraj Chauhan used to give him Rs. 30,000/- in cash per month. iii. he used to work on instruction of Neeraj Chauhan. He used to call buyers as well as sellers for Neeraj Chauhan in respect of sale and purchase of anti-cancer medicines viz; Keytruda, Opdyta, Perjeta, Tricentriq, Imfinz etc. He stated that they i.e. Neeraj Chauhan and Tushar Chauhan came in contact with various sellers and buyers of anti-cancer medicines through WhatsApp groups and IndiaMart online application. As required, he used to contact with buyers of anti-cancer medicines and finalized the deal. Neeraj Chauhan used to provide....
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....g shown bank account bearing no. 922010022896238 in the name of Tushar Chauhan maintained with Axis Bank Limited, Tushar Chauhan stated that Neeraj Chauhan used to deposit sale proceeds of anti-cancer medicines without bill and in cash. He stated that Neeraj Chauhan used to give details of his bank accounts to various buyers of anti-cancer medicines without bill and the said buyers used to deposit sale proceeds of anti-cancer medicines in his bank account and on instruction of Neeraj Chauhan, he used to transfer the said funds to various entities/persons. ix. he further stated that Neeraj Chauhan used to give him Rs. 500/- for every debit transaction amount of Rs 50,000/-. x. he stated that he received funds in his bank account from Ankush of M/s 2M Pharma, Aditya Krishna, Delhi Medicine Hub through Akshay Kumar etc. xi. he collected more than 200 Keytruda Injections from Viphil Jain and gave the same to Neeraj Chuhan. Neeraj Chauhan also used to collect Keytruda injections directly from Viphil Jain. Viphil Jain never provided any bill for purchase of anti-cancer medicines. xii. he stated that on instruction of Neeraj Chauhan he used to supply an....
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....ed by Neeraj Chauhan. He admitted that 'to allow Neeraj Chauhan to use his bank accounts'; he used to receive 1 % of debit transaction value from N eeraj Chauhan. He used that 1 % amount in his day to day expenses. Except Lovee Narula, Akshay Kumar (Delhi Medicine Hub); he did not know persons I entities who provided credit entries in his bank accounts. As directed by Neeraj Chauhan, he also used to withdraw funds in cash from his bank accounts and handed over the same to Neeraj Chauhan. xx. he stated that after November, 2021 transactions done in his bank accounts pertain to Neeraj Chauhan; he had done those transaction on instruction of Neeraj Chauhan and in lieu of those transaction he received rupee 1 % of debit transactions from Neeraj Chauhan. He stated that he received Rs. 45,000/- as commission from Neeraj Chauhan. xxi. Neeraj Chauhan started to pay Rs. 30,000/- per month in cash for the work of supply of spurious anti-cancer medicine since January, 2023 and paid the same till March, 2024 to Tushar Chauhan..." 76. Upon perusal of the aforesaid extracts of statements, it is observed that all the accused persons have given their testimonies under ....
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....resumption that the proceeds of crime were not involved in money laundering. The applicant, however, has failed to provide any credible evidence to rebut this presumption. Moreover, mere denial of involvement or assertion of being an investor in the firm without day-to-day operational control is insufficient to discharge the burden imposed by the Statute. 83. Furthermore, as clarified by the Hon'ble Supreme Court, the presumption under Section 24(a) of the PMLA does not operate conclusively but allows the accused an opportunity to rebut through cross-examination, production of evidence, or explanations under Section 313 of the CrPC. In the absence of any such rebuttal, the presumption stands in favor of the respondent, and the applicant's continued detention is justified under the PMLA. 84. Therefore, it is observed by this Court that the respondent had sufficient material in its possession, including financial records, digital evidence, and the applicant's communications, to establish a valid 'reason to believe' that the applicant was guilty of the offence of money laundering. The procedural safeguards under the Act were duly followed, and the challenge to the le....
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....il or on his own bond unless--] (i) the Public Prosecutor has been given a 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 likely to commit any offence while on bail: Provided that a person, who, is under the age of sixteen years, or is a woman or is sick or infirm, 3[or is accused either on his own or along with other co-accused of money-laundering a sum of less than one crore rupees] may be released on bail, if the Special Court so directs: Provided further that the Special Court shall not take cognizance of any offence punishable under section 4 except upon a complaint in writing made by- (i) the Director; or (ii) any officer of the Central Government or a State Government authorised in writing in this behalf by the Central Government by a general or special order made in this behalf by that Government. [(1A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), or any other provision of t....
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....ering offences. 94. Thirdly, the proviso to Section 45(1) of the PMLA carves out an exception to the rigorous twin conditions by allowing bail to be granted, at the discretion of the Special Court, to specific categories of persons, namely: (i) individuals below the age of sixteen years, (ii) women, (iii) persons who are sick or infirm, and (iv) those accused, either alone or with others, of money laundering involving a sum of less than rupees one Crore. 95. Following a perusal of the statutory provision, it becomes imperative to examine the judicial pronouncements that have interpreted and applied Section 45 of the PMLA in various factual contexts. 96. The Hon'ble Supreme Court in Nikesh Tarachand Shah v. Union of India, (2018) 11 SCC 1 struck down the twin conditions as unconstitutional. However, the legislature subsequently amended the provision to cure the defects, and it has since been upheld in Vijay Madanlal Choudhary (Supra), reaffirming the strict nature of bail conditions under the PMLA. In Prem Prakash (Supra), the Hon'ble Supreme Court has also delved into the principles pertaining to bail in PMAL matters. The relevant paragr....
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....bservations are significant and if read in the context of the recent pronouncement of this Court dated 9-8-2024 in Manish Sisodia v. Enforcement Directorate [Manish Sisodia v. Enforcement Directorate, (2024) 12 SCC 660 : 2024 SCC OnLine SC 1920], it will be amply clear that even under PMLA the governing principle is that "Bail is the Rule and Jail is the Exception". In para 52 of Manish Sisodia [Manish Sisodia v. Enforcement Directorate, (2024) 12 SCC 660 : 2024 SCC OnLine SC 1920], this Court observed as under: "52. ... From our experience, we can say that it appears that the trial courts and the High Courts attempt to play safe in matters of grant of bail. The principle that bail is a rule and refusal is an exception is, at times, followed in breach. On account of non-grant of bail even in straightforward open-and-shut cases, this Court is flooded with huge number of bail petitions thereby adding to the huge pendency. It is high time that the trial courts and the High Courts should recognise the principle that "bail is rule and jail is exception." 12. All that Section 45 PMLA mentions is that certain conditions are to be satisfied. The principle that, "bail is t....
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.... from the rigors of Section 45 of the PMLA in light of its proviso. 99. The material on record demonstrates that the accused persons operated in a highly coordinated and systematic manner, with clear understanding and collaboration among them to facilitate the offence. 100. The evidence shows deliberate concealment of the origin of funds, the use of incorporations and the layering of transactions to evade detection by regulatory authorities. The sheer scale of operations, involving the movement of funds across multiple jurisdictions, use of hawala channels, and sale of counterfeit medicines to unsuspecting patients and hospitals, underscores the organized and syndicated nature of the offence. 101. The respondent has provided a detailed representation of the modus operandi of the accused persons in the form of a graphic illustration. The same is as under: 102. As emphasized by the Hon'ble Supreme Court in a catena of judgments, the offence of money laundering must be viewed in the context of the entire criminal enterprise rather than in isolation with respect to individual roles. The collective nature of the operations, the financial interlinkages between the accused per....
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....iwari meant the voice of Saumya Chaurasia and the powers to be. The fact that Suryakant Tiwari had personal and close official dealings with her and was carrying her instructions to the officers, made it possible for Suryakant Tiwari to also command senior district level officers. This illegal authority was essential for him to run his empire of illegal extortion from coal & iron pellet transportation. Without his concurrence, no NOC was issued by the district machinery. All this was made possible by the fact that he was in the good books of Mrs Saumya Chaurasia. Therefore, she has directly indulged in the offence of money laundering as defined under Section 3 PMLA, 2002 being actually involved in the process of money laundering by way of possession, concealment, use, acquisition and projecting the proceeds of crime as untainted property. As per the findings of the investigation, it can be inferred that Saumya Chaurasia has directly acquired "proceeds of crime" as defined under Section 2(l)(u) PMLA, 2002 to an extent of more than Rs 30 crores. ED's investigation makes it evident that although all the money of extortion on coal & iron pellet transportation was collected....
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....l Court so directs:..." 103. Moreover, it is pertinent to mention here that the word used in the proviso to Section 45 of the PMLA is 'may' which indicates that it is the discretion of the Court concerned and it is not a mandate. As observed by the Hon'ble Supreme Court in a catena of judgments, it is the discretion of the Court and all the other relevant factors are needed to be weighed in while adjudicating the bail application. The relevant factors include the gravity of the offence, likelihood of reoccurrence, criminal antecedents etc. 104. In view of the foregoing judgment, this Court holds that the applicant cannot claim the benefit of the monetary threshold exemption under the proviso to Section 45 of the PMLA even if the proceeds of crime alleged against the applicant is merely Rs. 7,45,000/-. 105. The entire scheme of laundering illicit funds, as uncovered by the investigation, extends far beyond the threshold of one crore rupees, and the applicant's role must be assessed in the broader context of the criminal conspiracy in which he actively participated. 106. It is evident that an entire syndicate with established network and properly defined roles exist a....
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....is also not met. 112. The nature of the offence in the instant case, involving a sophisticated network for the distribution of counterfeit medicines targeting vulnerable patients, demonstrates a potential for re-offending if bail is granted. The involvement of multiple entities and associates in the fraudulent scheme raises a genuine apprehension that the applicant, if released, may influence witnesses and tamper with evidence, thereby, jeopardizing the ongoing investigation. 113. In view of the facts and circumstances, this Court finds that the twin conditions prescribed under Section 45 of the PMLA have not been satisfied. The evidence on record, the ongoing nature of the investigation, and the applicant's alleged role in the broader financial and selling of spurious medicines syndicate indicate that the rigors of Section 45 of the PMLA continue to apply. 114. The present bail application has also been filed under Section 439 of the CrPC, therefore, this Court, while considering the plea for bail, deems it necessary to evaluate the applicant's case through well-established principles governing the grant of bail under the said provision. Notwithstanding the rigors of Sect....
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....ve process. The applicant's financial dealings, the intricate network of the accused persons, and the continuing investigation reinforce the respondent's concerns regarding the potential for obstruction of justice. 121. Thus, in addition to failing to fall under the proviso to Section 45 of the PMLA and satisfy the twin conditions under Section 45(1) of the PMLA; the applicant also fails to meet the general considerations under the triple test for the grant of bail. Consequently, the applicant's custody is warranted to ensure the integrity of the investigation and prevent any potential misuse of the judicial process. 122. At this stage, it is also pertinent to mention that during the course of arguments, it has been contended by the learned senior counsel for the applicant that several co-accused persons, who play a major role in the predicate offence, have been enlarged on bail in the predicate offence and thus, the instant applicant's bail plea may also be considered in light of the same. 123. However, this Court is unable to accept the contention put forth by the learned senior counsel for the applicant as it is a settled position of law that the in order to grant bail ....
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....cant, if on interim bail, is directed to surrender before the Court concerned within a period of seven days from today and the sureties/bail bond, if any shall stand discharged. If the applicant fails to surrender as directed, the investigating agency shall take appropriate steps to take the applicant in custody to secure his presence. 129. It is made clear that any observations made herein are only for the purpose of deciding the present petition and shall not be construed as an expression on the merits of the case. The learned Trial Court shall proceed with the matter uninfluenced by any observations made by this Court and shall decide the case strictly in accordance with law. 130. The order will be uploaded on the website forthwith. ============= Document 1 TABLE-9 Date Narration MMT/IMPS/200518832793/NA/Tushar 05-01-2022 Cha/SBIN0001536, Debit 100000 MMT/IMPS/201413057721/NA/Tushar 14-01-2022 Cha/SBIN0001536, 170500 20-01-2022 24-01-2022 03-02-2022 MMT/IMPS/202016172253/NA/Tushar Cha/SBIN0001536, Cha/SBIN0001536, MMT/IMPS/203415540931/NA/Tushar Cha SBIN0001536, 200000 MMT/IMPS/202213164351/NA/Tushar 12....
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