TaxTMI 
TaxTMI 
2025 (2) TMI 16
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....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 and 34 of the IPC, based on a complaint given by SI Gulab Singh. The complaint alleged the involvement of accused persons in the procurement, manufacturing and sale of spurious anti-cancer medicines. 3. It was alleged that the primary accused, namely Viphil Jain and Suraj Shat, in collusion with their 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 at Flat No. 1101, Block-2, Eleventh Floor, CSP Units, DLF Capital Greens, Moti Nagar, New Delhi, the accused were allegedly caught in the act of filling empty vials with unauthorized substances and packaging them using specialized machinery. The police seized a substantial quantity ....
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....ortant gear in the present machine of sale of counterfeit medicines, generating proceeds to the tune of approximately Rs. 3 crores. It is further alleged that a sum of Rs. 2 crores was routed through banking channels to the accounts of various co-accused, while an additional amount of Rs. 80 lakhs was transacted through hawala networks. 11. The applicant previously preferred a regular bail application before the learned Special Judge on 18th July, 2024, which was dismissed vide order dated 20th August, 2024. The learned Special Judge noted that the applicant failed to satisfy the twin conditions prescribed under Section 45 of the PMLA and that the nature and gravity of the allegations warranted continued custody to prevent any potential tampering with the evidence. 12. Hence, the present bail application has been preferred before this Court, seeking the grant of regular bail. 13. Learned counsel appearing on behalf of the applicant submitted that the applicant has been falsely implicated in the present case and has no direct involvement in the alleged offence of money laundering under the PMLA. It is submitted that the applicant has been carrying out his business in the or....
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....terest and the integrity of the financial system. It is submitted that economic offences pose a serious threat to the national economy and public confidence. 23. It is submitted that there exists sufficient material on record, including documentary evidence and statements of co-accused persons, which prima facie indicate the applicant's active involvement in the process and activities connected with the proceeds of crime. 24. It is submitted that the applicant has failed to satisfy the twin conditions prescribed under Section 45 of the PMLA, which mandates that the accused must demonstrate that he is not guilty of the alleged offence and that he is not likely to commit any offence while on bail. The applicant has not discharged this burden satisfactorily. 25. It is submitted that the investigation has revealed the applicant's role in laundering substantial amounts of money through complex financial transactions, including the use of shell entities and undisclosed accounts, which cannot be ignored at this stage. 26. It is submitted that the applicant's release on bail at this juncture would seriously prejudice the ongoing investigation, as crucial witnesses are y....
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....ated money laundering operation involving substantial financial transactions aimed at disguising illicit funds. It has been submitted that the applicant's involvement has been established through financial records, transactions, and statements of co-accused persons, demonstrating a clear link to the proceeds of crime. It has been further argued that the applicant has failed to satisfy the twin conditions under Section 45 of the PMLA. 35. Additionally, the respondent submits that granting bail at this stage would severely undermine the investigation and may lead to tampering with evidence or influencing witnesses. The prosecution has also argued that the applicant has not provided a satisfactory explanation for the substantial financial transactions identified during the investigation. 36. In light of the submissions made before this Court and the material placed on record, the key issue which arises to adjudicate the present bail application is whether the twin conditions prescribed under Section 45 of the PMLA are satisfied in the present case? 37. It is a settled position of law that statements recorded under Section 50 of the PMLA hold evidentiary value and are admi....
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....l application and determine whether the applicant has satisfied the twin mandatory conditions under Section 45 of the PMLA, it is imperative to carefully examine the prosecution complaint, statements of the applicant and co-accused persons and the relevant bank statements available on record. 40. For the sake of convenience, the statement of the applicant recorded under Section 50 of the PMLA is reproduced herein under: "Ans. I state that after graduation, I started a medical shop namely Evergreen Medicos, at Chandigarh in 2012. Thereafter, in 2018, I started a medicine agency namely Cancer Medicine Agency at SCO No.16, Back Side Entry, 2nd Floor, Sector 11D, Chandigarh. In 2023 I started a medical shop namely Delhi Medical Hub. Further, I state that Evergreen Medicos Booth No. 942 , Dadu Majra Colony, Sector-38 West Chandigarh is a sole proprietorship firm registered in the name of my brother Anil Sharma. Evergreen Medicos is a retail shop for medicine. I state that this firm is managed and controlled by my brother Anil Sharma since 2012. I state that Cancer Medicine Agency is a sole proprietorship firm registered in my name. This firm is a retail and....
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.... Guru Harkishan Sahib, Chandigarh to the tune of 3 crores approx. On being specifically asked, I state that approximately funds Rs. 2 Crores were transferred to Neeraj Chauhan through banking channel and approximately Rs.80 Lakhs were transferred to Neeraj Chauhan through Hawala Channel in Cash in respect of sale proceeds of aforesaid fake and spurious cancer medicine. In this connection, I submit statement of bank accounts no. 632201515747 (A/c of Rajesh Kumar), 078205001511 (A/c of Delhi Medicine Hub) and 50100384376302 (Saving A/c of Akshay Kumar). Further I submit details of payment made to Deepali Jain, Sanyam Jain and Viphil Jain." *** "Ans. I state that I do not meet with Suraj Shat till date. However, Neeraj Chauhan provided me account details of Suraj Shat and instructed me to deposit sale proceeds of aforesaid fake and spurious cancer medicines in the account of Suraj Shat. In addition to above, I state that Neeraj Chauhan also provided me account details of one Neeraj Yadav and asked me to deposit sale proceeds of fake and spurious cancer medicines in that account and I deposited as instructed by Neeraj Chauhan. Q.9. Do you have WhatsA....
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....¢ 31.07.2023: Rs 25,000/-Credited from the account of accused Suraj Shat. • 04.08.2023: Rs 45,000/- & 50,000/- Credited from the account/ mobile number 9717538497 (accused Tushar Chauhan). • 29.08.2023: Rs 24,000/-Credited from the account/mobile number 9717538497(accused Tushar Chauhan). • 03.01.2024 Rs 25,000/-Credited from the account/mobile number 9717538497 (accused Tushar Chauhan). • 06.02.2023: Rs 30,000/-Credited from the account/mobile number 9717538497 (accused Tushar Chauhan). • 14.02.2024: Rs 5,00,000/-Credited from the account of Delhi Medicine (Akshay Kumar) 17,41,027/- 43. The bank transactions between Neeraj Chauhan and Akshay Kumar are reproduced herein under: 2. Neeraj Chauhan: Bank Name Transactions Balance Axis Bank Ltd. A/c No 914010052869894 • 09.01.2023: Rs 1,00,000/- credited from the account of accused Tushar Chauhan • 10.01.2023: Rs 1,00,000/- & Rs 1,00,000/- credited from the account of accused Tushar Chauhan • 15.03.2023: Rs 1,00,000/- & Rs 1,00,000/- credited from the account of accused Tushar Chauhan. • 10.04.2023:....
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....ds as under: "..In his statement recorded under section 50 of PMLA, 2002, Akshay stated that he purchased spurious anti-cancer medicines from Neeraj Chauhan and Tushar Chauhan at the below mentioned rates and sold the same to Sri Guru Harkrishansahib C Eye Hospital Trust. TABLE-11 Sr.No. Name of the drug Purchase Price per vial from Neeraj Chauhan 1. Keytruda 1,30,000/- 2. Opdyta 62,000/- 3. Perjeta 1,25,000/- 5. Bevatas 8,500/- Further, Akshay Kumar stated that he used to earn profit by selling filled vials of spurious anti-cancer medicines having details as under:- TABLE-12 Sr.No. Description/Name of anti-cancer medicine Profit earned per vial of spurious anti-cancer medicines. 1. For Keytruda vial 10,000 2. For Tecentriq vial 12,000 3. For Perjeta vial 9,000 5. For Infinzi vial 10,000 Further, Purchase Manager of Sri Guru Harkrishan sahib C Eye Hospital Trust during their statement recorded under section 50 of PMLA, 2002 provided the details of purchase price of the said anti-cancer medicines from M/s Delhi Medicine Hub (DMH) and M/s Cancer Medicine Ag....
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....actions through banking channels as well as Hawala networks, thereby creating a financial trail of laundering proceeds or proceeds of crime. His admission regarding the deletion of WhatsApp conversations concerning these transactions further strengthens the interference of culpability. 51. It is further observed by this Court that the corroborative testimony of co-accused Rajesh Kumar, his business associate, reinforces the applicant's role in managing the financial affairs of M/s Delhi Medicine Hub. He stated that he executed bank transfers and cash withdrawals on the express instructions of the applicant, including payments made to co-accused persons namely Deepali Jain and Neeraj Chauhan. Furthermore, evidence derived from the supplementary prosecution complaint indicate that the profit generated from these transactions, amounting to Rs. 8,81,000/- from M/s Delhi Medicine Hub and Rs. 7,39,000/- from M/s Cancer Medicine Agency, constitutes proceeds of crime as defined under the PMLA. These financial gains, acquired through the sale of counterfeit medicines prima facie indicate the commission of offence of money laundering. 52. Moreover, the investigation findings also indic....
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....nal Procedure, 1973 (2 of 1974), or any other provision of this Act, no police officer shall investigate into an offence under this Act unless specifically authorised, by the Central Government by a general or special order, and, subject to such conditions as may be prescribed.] (2) The limitation on granting of bail specified in sub-section (1) is in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting of bail. [Explanation.--For the removal of doubts, it is clarified that the expression "Offences to be cognizable and non-bailable" shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 (2 of 1974), and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfillment of conditions under section 19 and subject to the conditions enshrined under this section.]" 54. This Court shall now proceed to analyze the statutory framework under Section ....
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....f bail conditions under the PMLA. In Prem Prakash v. Directorate of Enforcement, (2024) 9 SCC 787, the Hon'ble Supreme Court has also delved into the principles pertaining to bail under PMLA offences. The relevant paragraphs are as under: "Section 45 PMLA - Contours 10. Considering that the present is a bail application for the offence under Section 45 PMLA, the twin conditions mentioned thereof become relevant. Section 45 (1) PMLA reads as under: "45. Offences to be cognizable and non-bailable. - (1) Notwithstanding anything contained in the Code of Criminal Procedure, 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 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 or is accused either on h....
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....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 the rule and jail is the exception" is only a paraphrasing of Article 21 of the Constitution of India, which states that no person shall be deprived of his life or personal liberty except according to the procedure established by law. Liberty of the individual is always a Rule and deprivation is the exception. Deprivation can only be by the procedure established by law, which has to be a valid and reasonable procedure. Section 45 PMLA by imposing twin conditions does not re-write this principle to mean that deprivation is the norm and liberty is the exception. As set out earlier, all that is required is that in cases where bail is subject to the satisfaction of twin conditions, those conditions must be satisfied. *** Scope of inquiry under Section 45 PMLA 16. Coming back to the scope of inquiry under Section 45, Vijay Madanlal Choudhary [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1], while reiterating and agreeing with the holding in ....
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....ccounts, cash transactions and hawala channels indicate a high risk of continued engagement in similar activities if released. 64. The applicant's admission of using hawala channels to facilitate unaccounted transactions raises concerns about potential interference with the investigation and further commission of the offence while on bail. 65. Secondly, 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. The evidence shows deliberate concealment of the origin of funds 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. 66. The respondent has provided a detailed representation of the modus operandi of the accused persons in the form of a graphic illustration. 67. In the present case, the respondent has placed on record material indicating the applica....
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....taken into account. 72. Applying the aforesaid principle to the present case, this Court finds that the gravity of the allegations against the applicant is of a serious nature, involving the alleged laundering of proceeds derived from the sale of spurious anti-cancer medicines. The offence not only entails significant financial implications but also poses a grave risk to public health and safety. 73. As observed in the foregoing paragraphs, but not being repeated for the sake of brevity, the applicant in the present case is alleged to have played an active role in the procurement, distribution, and financial management of the illicit business. 74. The evidence on record, including financial transactions and digital communications, suggests a well-orchestrated operation which demands a higher threshold of scrutiny before granting bail. The investigating agency has highlighted the potential risk of the applicant tampering with evidence and influencing witnesses, thereby, affecting the integrity of the ongoing investigation. 75. In the present case, the applicant has failed to demonstrate that his release would not pose a risk to the investigative process. The applicant's ....