TaxTMI 
TaxTMI 
2025 (6) TMI 771
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....pplication before the predecessor bench, the accused/applicant also filed a miscellaneous application bearing no. CRL.M.(BAIL) 131/2025 seeking interim bail on medical grounds. Vide order dated 27.01.2025, the predecessor bench granted interim bail for a period of six weeks to the accused/applicant, directing him to surrender immediately after expiry of six weeks from the date of release. 2.1 Once the accused/applicant got released on interim bail, the matter was repeatedly adjourned before the predecessor benches for different reasons. 2.2 The accused/applicant filed another miscellaneous application numbered as CRL.M.(BAIL) 541/2025, seeking extension of the interim bail, for which the predecessor bench issued notice returnable on 03.04.2025, extending the interim protection till that day. 2.3 On 03.04.2025, the matter was listed before another bench, where the senior counsel for the accused/applicant requested the matter to be placed before the previous bench, so the said bench adjourned the matter to 07.04.2025. 2.4 On 07.04.2025, the predecessor bench released the matter from category of part heard and directed listing of the matter before this bench on 21.04.2025 after ex....
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....and both sides requested that they needed at least one hour to conclude arguments, so the matter was adjourned to 14.07.2025 i.e., after about 18 working days. 3. By 21.05.2025, the roster of vacation benches was not ready, otherwise this matter, as part-heard matter, could have been posted before this bench during vacation duty itself. However, vide order dated 29.05.2025, passed in W.P.(CRL) No.231/2025 titled Vedpal Singh Tanwar vs Directorate of Enforcement, the Supreme Court directed hearing of this matter today, which has been done in compliance. Even today, after addressing for 1 hour 15 minutes, the senior counsel for the accused/applicant and the prosecutor for State sought to file written submissions after exchanging copies. But that request was declined as it would have again led to an adjournment, so that they be not deprived of opportunity to examine the submissions and respond. Thence, the final arguments were concluded in pre-lunch session and matter was passed over for orders in this post-lunch session. RELEVANT FACTUAL MATRIX 4. Briefly stated, circumstances relevant for present purposes are as follows. 4.1 The accused/applicant was unofficially a shareholder ....
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....enerate proceeds of crime in the form of money, followed by money laundering which caused huge revenue loss to the State. The accused/applicant is one of the main beneficiaries of the offences thus committed. 4.4 Treating the aforesaid as the Scheduled Offences under the PML Act, the DoE registered the Prosecution Complaint before the court of competent jurisdiction and arrested the accused/applicant. 4.5 Hence, the present applications for grant of bail. RIVAL CONTENTIONS 5. Against the above backdrop, senior counsel for the accused/applicant contended that the accused/applicant is innocent and cannot be charged with offence under Section 3/4 of the PML Act. The senior counsel for the accused/applicant argued as follows. 5.1 Existence of proceeds of crime is sine qua non in order to make out an offence under Section 3 of the PML Act and the proceeds of crime can be identified only through the predicate offence, so where there is no predicate offence, there is no proceeds of crime and consequently there is no offence under the PML Act. 5.2 The prosecution complaint by the HSPCB for offences under Section 15/16/19 of the EP Act did not name the accused/applicant. 5.3 The sai....
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....e offence of money laundering and that he is not likely to commit any offence while on bail. These two mandatory preconditions for grant of bail were upheld by the Supreme Court in the celebrated judgment Vijay Madanlal Chaudhary vs Union of India, 2022 SCC OnLine SC 929, as money laundering is a separate class of offence which calls for effective and stringent measures. 6.3 In the present case, neither of those two pre-conditions is satisfied. The Prosecution Complaint details the scheduled offence, investigation under the PML Act, quantification of proceeds of crime, modus operandi of the accused firm and specific role of the accused/applicant as deduced from the incriminating material qua money laundering. As regards cognizance of the complaint, the said complaint was filed on 27.07.2024 and arguments on point of cognizance are being carried out before the concerned court. 6.4 Same act can be tantamount to an offence under the EP Act as well as under the Penal Code. So, the argument that after scrapping of the offence under the EP Act as a scheduled offence would not be sustainable argument. In this regard, relevance is placed on the judgment in the case of Jayant & Ors vs Sta....
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....il to the accused: (i) that there are reasonable grounds for believing that the accused is not guilty of the offence of money laundering; and (ii) that the accused is not likely to commit any offence while on bail. However, proviso to Section 45 also confers discretion on the Special Court under the PML Act to admit on bail an accused under the age of sixteen years, or a woman, or sick or infirm or is accused of money laundering a sum of less than one crore rupees. Remaining portion of Section 45 is not relevant for present purposes. 9.1 In the case of Vijay Madanlal Chaudhary (supra), the Supreme Court traversed through the laudable purpose behind enactment of the PML Act and observed thus: "Considering the purposes and objects of the legislation in the form of 2002 Act and the background in which it had been enacted owing to the commitment made to the international bodies and on their recommendations, it is plainly clear that it is a special legislation to deal with the subject of money laundering activities having transnational impact on the financial systems including sovereignty and integrity of the countries. This is not an ordinary offence. To deal with such serious....
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....the Trial Court in recording its finding of the guilt or acquittal during trial which is based on the evidence adduced during the trial..... the words used in Section 45 of the 2002 Act are "reasonable grounds for believing" which means the Court has to see only if there is a genuine case against the accused and the prosecution is not required to prove the charge beyond reasonable doubt." (emphasis supplied) 9.2 There is plethora of judicial pronouncement, not being repeated herein for brevity that existence of the twin conditions stipulated under Section 45 of the PML Act is mandatory before the court exercises discretion to release on bail a person accused of the offence of money laundering; and that the belief qua the accused being guilty of money laundering has to be tested on "reasonable grounds", which means something more than "prima facie" grounds. Equally well settled is the scope of Section 24 of the PML Act that unless contrary is proved, the Court shall presume involvement of proceeds of crime in money laundering; and that burden to prove that the proceeds of crime are not involved is on the accused. 9.3 Further, it is trite that economic offences constitute an alt....
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....y been taken by the concerned Special Court and summons have already been issued to the accused persons; Order passed by the NGT in OA No.169/2020 on the basis of Report submitted by the eight member committee constituted by the NGT qua the extent of illegal and unscientific mining in Dadam mines by the project proponent GMM; and FIR No.449/2023, registered by PS Tosham, Bhiwani for offences under Section 420/463/471/120B IPC against few business entities and their partners/directors including the present accused/applicant. 10.1 On the basis of the Complaint filed by HSPCB and findings recorded by the NGT, investigation into the offence of money laundering was initiated by the DoE vide ECIR dated 16.06.2023. During investigation searches at various premises were conducted and voluminous incriminating material was recovered and seized, which material prima facie reflected commission of the Scheduled Offences related to illegal mining, leading to generation of proceeds of crime. On the basis of that information shared, the local police of PS Tosham registered FIR No. 449/2023 against the accused persons and investigated the same as regards offences of cheating, forgery and conspirac....
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....he accused/applicant on merits, despite the vast expanse of the socioeconomic offences alleged against him. As mentioned in the Complaint, further investigation is going on in the matter. 12. According to the said Complaint filed by HSPCB (Annexure A31 to the Bail Application), GMM engaged itself in unscientific mining, which led to landslides, causing loss of four lives and injuries to many others in Dadam mining zone in Tosham block of District Bhiwani. Such illegal and unscientific mining resulted into severe damage to air, land and water through processes of uncontrolled drilling, cutting and blasting beyond the permitted area, coupled with generation of tons of dust emissions. I am not convinced with argument of senior counsel for the accused/applicant that the same does not fall within the purview of Paragraph 25 of the Schedule to the PML Act. 13. It is not just the said Complaint filed by the HSPCB, but also the FIR No.449/2023 registered by PS Tosham, which describes in detail the offences of cheating, forgery and conspiracy committed by the accused persons, including the accused/applicant to carry out illegal mining in order to earn unlawful gain for the accused persons....