TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1300
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....tered by ACB, Dhanbad u/s 13(2) r/w 13(1) (e) of P.C. Act, another FIR bearing no. 15/2019 dated 26.08.2019 registered by ACB, Dhanbad against the accused petitioner namely, Pramod Kumar Singh @Pramod Singh @ Pramod Kumar, Block Account Manager at PHC, Jharia for misappropriation of NRHM funds and the role of persons posted at Primary Health Centre, Jharia cum Jodapokhar, Civil Surgeon, Dhanbad and staff posted there. 3. It is further stated that an analysis of statements of Saving Bank Accounts of PHC, Jharia cum Jodapokhar at Punjab National Bank bearing no. 0230000109221923 and 023000109233751 was done by ACB, Dhanbad and it was found that in these two account Rs. 11,28,27,111.00 was transferred from the District Health Society between 01.03.2012 to 22.06.2016 and out of this, an amount of Rs. 6,97,43,832.29 was misappropriated and thereby causing huge loss to the government and corresponding gain to themselves. 4. It is further stated that since Sections 120-B, 420, 467, 471 of IPC and Section 13(2) r/w 13 (1) (e) of P.C. Act, 1988 mentioned in both the FIRs are schedule offences as per Schedule 'A' appended to PMLA, therefore, the investigation was taken for commissi....
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....plicated in this case due to some ulterior motive. (ii) It is submitted that the petitioner was contractual basis Block Account Manager, PHC Jharia cum Jodapokhar and his responsibility was to maintain accounts of the said department under instruction and as per direction of the then Medical in-charge (MOIC) and vide Letter No.286 dated 01.02.2012 the Civil Surgeon Dhanbad had instructed that all the withdrawal and cheques will be jointly signed with the Block Account Manager (BAM), and on the strength of that letter, Pramod Singh was introduced at bank as joint signatory with MOIC Shashi Bhushan Prasad for the payment of various schemes, MMJSY, routine immunization, Child health activities, pulse polio, anemia reduction, Sahiya training, expenses of center etc. (iii) It is further submitted that some amount had been transferred in Bank Account of Pramod Singh(petitioner) for the cash payment and transaction of staff payment and other expenses being joint signatory with MOIC Shashi Bhushan Prasad and any work done in any account of C.H.C. or any payment of any head the order of payment was made by the then MOIC Shashi Bhushan Prasad, thereafter it was verified by the then BPM P....
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.... Office. (viii) It has further been submitted that there is no legally acceptable evidence on the entire case record to implicate the petitioner in the present case save and except suspicion and in any view of the matter no case as alleged is attracted against the petitioner. 12. Further submission has been made that petitioner is languishing in Jail custody since 19.02.2025 and in the aforesaid view of the matter also as per the ground agitated, it is a fit case where the petitioner is to be given the privilege of bail. Argument advanced by the learned counsel for the respondent/Directorate of Enforcement: 13. Per contra, Mr. Amit Kumar Das, learned counsel for the Enforcement Directorate, has vehemently opposed the prayer for bail by taking the following grounds:- (i) It has been submitted that the petitioner being Block Account Manager at PHC, Jharia in connivance with Shashi Bhushan Prasad (now deceased) misused his official position and embezzled Rs. 9,39,87,952.29/- by transferring the NRHM funds from the bank accounts of PHC, Jharia and PHC Management Society, Jodapokhar into his bank accounts and bank accounts of his family/associates and further directed them to han....
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.... the embezzlement and laundering of public funds to the tune of Rs 9,39,87,952.29/-which were meant for crucial public health schemes under the NRHM. 19. It has further been alleged that the present Petitioner is the kingpin and prime conspirator of the said criminal syndicate, who, in collusion with the then Medical Officer In-charge (MOIC), Late Dr. Shashi Bhushan Prasad, was responsible for the generation, layering, and integration of the aforesaid proceeds of crime. 20. The present petitioner was arrested under Section 19 of the PMLA on 18.02.2025, thereafter the present petitioner had moved before the Spl. Judge PML Act Ranchi for bail but vide order dated 12.03.2025, the prayer for bail of the present petitioner has been rejected. 21. The Directorate of Enforcement, after investigation and collection of material evidence, has filed a Prosecution Complaint dated 03.04.2025 before the Special Court, PMLA, Ranchi against the present Petitioner and other co- accused persons, for commission of the offence of money laundering as defined under Section 3 and punishable under Section 4 of the PMLA, 2002, thereafter, the Hon'ble Court has taken cognizance of the said complaint o....
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....ned 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;]" 27. It is evident from the aforesaid provision by which the "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country, then the property equivalent in value held within the country or abroad. 28. In the explanation, it has been referred that "proceeds of crime" include 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. 29. It is, thus, evident that the reason for giving explanation under Section 2(1)(u) is by way of clarification to the effect that whether as per the substantive provision of Section 2(1)(u), the property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offenc....
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....ncealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever.]" 34. It is evident from the aforesaid provision that "offence of money-laundering" means whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering. 35. It is further evident that the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds 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. 36. The punishment for money laundering has been provided under Section 4 of the Act, 2002. 37. Section 50 of the Act, 2002 confers power upon the authorities regarding summons, production of documents and to give evidence. 38. The various provisio....
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....t 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, and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfilment of conditions under section 19 and subject to the conditions enshrined under this section 43. The fact about 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-285,286 and 412. For ready reference, the said paragraphs are being referred as under:- "285.............The provision post the 2018 Amendment, is in the nature of no bail in relation to the offence of money laundering unless the twin conditions are fulfilled. The twin conditions are that there are reasonable grounds for believing that the accused is not guilty of offence of money laundering and that he is not likely to commit any offence while on bail. 286. Considering the purposes and objects of the legislation in the form of the 2002 Act and the background in which it had been enacted owing to the ....
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....l. 45. It has further been observed that as per the statutory presumption permitted under Section 24 of the Act, the Court or the Authority is entitled to presume unless the contrary is proved, that in any proceedings relating to proceeds of crime under the Act, in the case of a person charged with the offence of money laundering under Section 3, such proceeds of crime are involved in money laundering. Such conditions 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. 46. The Hon'ble Apex Court in the said judgment has further laid down that the twin conditions 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. 47. The Hon'ble Apex Court in the ....
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....exercise' of the general power to grant bail under the UAP Act is severely restrictive in scope. The form of the words used in proviso to Section 43D (5)- 'shall not be released' in contrast with the form of the words as found in Section 437(1) CrPC - 'may be released' - suggests the intention of the Legislature to make bail, the exception and jail, the rule." 51. The reason for making reference of this judgment is that in the Satender Kumar Antil vs. CBI and Anr., the UAPA has also been brought under the purview of category 'c' wherein while laying observing that in the UAPA Act, it comes under the category 'c' which also includes money laundering offence wherein the bail has been directed to be granted if the investigation is complete but the Hon'ble Apex Court in Gurwinder Singh vs. State of Punjab and Anr. (supra) has taken the view by making note that the penal offences as enshrined under the provision of UAPA are also under category 'c' making reference that jail is the rule and bail is the exception. 52. Now coming to the grounds as has been raised on behalf of the learned counsel for the petitioner that the petitioner is innocent, committed no offence whatsoever as al....
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.... Pramod Kumar Singh, Block Account Manager along with Late Shashi Bhushan Prasad, Medical Officer- In Charge were jointly authorized to withdraw and spend the NRHM funds. However, they misused their official position and misappropriated Rs. 6,97,43,832.29/- from two bank accounts having a/c 0230000109221923 and 0230000109233751 held at PNB in the name no of PHC, Jharia cum Jodapokhar, Dhanbad during 01.03.2012 to 22.06.2016 Pramod Kumar Singh in connivance with Shashi Bhushan Prasad (now deceased) transferred funds to the tunc of Rs. 6,97,43,832.29/- from aforesaid PNB Bank accounts to his bank accounts and also the accounts of his associates and his relatives. 8.1.2 During the course of investigation, the report of special audit conducted by team constituted by Department of Health, Medical Education and Family Welfare, Govt. of Jharkhand in respect of the embezzlement of NRHM funds to the tune of Rs. 6.97 crores (as revealed from FIR No. 15/2019 dated 26.08.2019) through aforesaid two bank accounts having no 0230000109221923 and 0230000109233751 held at PNB in the name of PHC, Jharia cum Jodapokhar, Dhanbad during 01.03.2012 to 22.06.2016 by Pramod Kumar Singh, the then Block A....
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....r Singh in connivance with Shashi Bhushan Prasad (now deceased) from another bank account of PHC Management Society, Jodapokhar maintained with State Bank of India was also detected Through the similar modus operandi, Pramod Kumar Singh in connivance with Shashi Bhushan Prasad (now deceased) embezzled a total amount of Rs. 2,42,44,120/- from the bank account по. 30871450998 maintained with State Bank of India in the name of PHC Management Society. 8.1.5 Investigation under PMLA revealed that Pramod Kumar Singh being Block Account Manager during his posting at PHC, Jharia cum Jodapokhar amassed huge wealth in the name of his relatives, associates and in the name of himself despite being a low salary employee on contractual basis. 8.2.2 During analysis of bank accounts bearing no. 0230000109221923 and 0230000109233751 held in the name of PHC, Jharia cum Jodapokhar, Dhanbad with Punjab National Bank, it is revealed that Pramod Singh in connivance with Shashi Bhushan Prasad (now deceased) used these bank accounts for embezzlement of NRHM funds through his associates, relatives and through his own bank account. Further, Pramod Kumar Singh also transferred funds to some v....
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....s programmes i.e. MMJSY, Routine Immunization, Child Health Activities, Pulse Polio, Anemia Reduction, Sahiya Training, consolidated salary payments of employees, etc. However, Pramod Singh in connivance with Late Shashi Bhushan Prasad misused the official position and embezzled NRHM funds to the tune of Rs. 9,39,87,952.29/ as a result of criminal activity and related to scheduled offences ➤ Accused no. 1 and late Shashi Bhushan Prasad are directly involved in the generation of Proceeds of Crime by misusing their official positions at PHC, Jharia cum Jodapokhar ➤ Accused no. 1 acquired Proceeds of Crime to the tune of Rs. 3.95 Crores directly in his bank accounts maintained with Punjab National Bank and State Bank of India, from the bank accounts of PHC Jaria cum Jodapokhar ➤ Accused no. 1 in capacity of Block Account Manager, PHC, Jharia cum Jodapokhar, transferred Rs. 10,00,000/- from the bank account of PHC Management Society through cheque bearing no. 472268 to the bank account of his wife i.e. Priya Singh (accused no. 2) on 02.06.2012 which was further transferred to the bank account of M/s Sahyogi Properties Pvt. Ltd. on 24.04.2012 in lieu of the pu....
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....3(2) 13(1)(e) of the Prevention of Corruption Act, 1988 and Sections 120B, 420, 467, 471, 406, 409, and 477A of the Indian Penal Code, 1860, which are scheduled offences under Section 2(1)(y) of the PMLA. 56. Further, the Investigation revealed that the petitioner was employed as a Block Account Manager (BAM) at Primary Health Centre (PHC), Jharia cum Jodapokhar, Dhanbad, on a contractual basis during the relevant period and was a joint signatory for the official bank accounts of the primary health Centre (PHC). It has been alleged that during the course of his employment, the petitioner, in conspiracy with late Dr. Shashi Bhushan Prasad, the then Medical Officer-in-Charge (MOIC) of the said PHC, misappropriated large sums of government money meant for National Rural Health Mission (NRHM) schemes. 57. The preliminary investigation conducted by ACB, Ranchi, FIR No. 46/2016 was registered after it was revealed that the petitioner had amassed properties disproportionate to his known sources of income in his name and also in the names of his wife and associates. 58. Further, it has come on record that on the basis of FIR No.15/2019 registered by ACB Dhanbad detailed investigation wa....
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....25 and was subsequently arrested under Section 19 of PMLA on 18.02.2025. 62. Thereafter, Enforcement filed Prosecution Directorate Complaint under Section 45 read with Section 44 of PMLA, 2002, on 03.04.2025 before the Special Judge (CBI)-cum-Special Judge under PMLA, Ranchi, against Petitioner and other accused including wife of the petitioner namely Priya Singh and consequently cognizance of the offence of money laundering under Section 3 punishable under Section 4 of PMLA, 2002 has been taken by the Spl. Judge PML Act, on 16.07.2025. 63. It is revealed during investigation that the Petitioner blatantly violated the public trust by engaging in systematic, large-scale misappropriation of public funds in connivance with late Dr. Shashi Bhushan Prasad, the then Medical Officer-in-Charge of the PHC. The Petitioner/accused was joint signatory to the bank accounts operated in the name of PHC Jharia cum Jodapokhar and was thereby directly and authoritatively positioned to execute unauthorised financial transactions, bypassing official scrutiny. The transactions in this account further substantiate the pre-meditated and habitual nature of the money laundering operation spearheaded by t....
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....tements. 69. Further it appears from record that petitioner had failed to provide any cogent explanation, documentary proof, or justification as to the source of funds used for acquiring various assets thus, the Petitioner/accused has failed to discharge the statutory burden under Section 24 of PMLA. 70. Further from statements of Basant Ram and Sannu Kumar Singh recorded under Section 50 of PMLA indicates that they made large cash withdrawals on the petitioner's instructions and handed over the cash to him personally. 71. It needs to refer herein that the three Judges Bench of the Hon'ble Apex Court in the case of Rohit Tandon vs. Directorate of Enforcement, (2018) 11 SCC 46 has held that the statements of witnesses recorded by Prosecution- ED are admissible in evidence, in view of Section 50. Such statements may make out a formidable case about the involvement of the accused in the commission of the offence of money laundering. 72. In the instant case, it has been found during the course of investigation from the statements of witnesses recorded under Section 50 of the P.M.L.A that the petitioner had directly indulged, knowingly as the party and is actually involved in al....
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....ner's argument regarding the status of the predicate FIRs is legally not sustainable. 79. Further, the burden of proof is on the Petitioner until the contrary is proved, the same is observed in various judicial pronouncements and upheld in the case of Vijay Madanlal Choudhary (supra). Further in Rohit Tandon v. Directorate of Enforcement, (supra) the Hon'ble Supreme Court has also observed that the provisions of section 24 of the PMLA provide 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 the appellant. 80. Further, the offence of money laundering as contemplated in Section 3 of the PMLA has been elaborately dealt with by the three Judge Bench in Vijay Madanlal Choudhary (supra), in which it has been observed that Section 3 has a wider reach. The offence as defined captures every process and activity in dealing with the proceeds of crime, directly or indirectly, and is not limited to the happening of the final act of integration of tainted property in the formal economy to constitute an act of money laundering. Of c....
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....ccused persons. 84. Thus, on the basis of the discussion made hereinabove the contention of the learned counsel for the petitioner that even if the entire ECIR will be taken into consideration, no offence will be said to be committed so as to attract the ingredients of Sections 3 & 4 of the P.M.L. Act, 2002, is totally misplaced in the light of accusation as mentioned in prosecution complaint. 85. So far as the issue of period of custody as agitated by learned counsel for the petitioner is concerned, it is settled proposition of law which has been settled by the Hon'ble Apex Court that the period incarceration (herein about 06 month) or delay in trial alone cannot be ground to release the petitioner on bail, rather in case of scheduled offences/special offences the seriousness of the matter and the societal impact should be taken in to consideration by the Court concerned while enlarging the petitioner on bail. 86. This Court is conscious with the fact that personal liberty is utmost requirement to maintain the individuality of the person concerned but at the same time it is equally settled that the balance between personal liberty and societal impact of the alleged offence shou....
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....inted property as untainted, and the strict statutory framework governing bail under the PMLA, no ground exists for the petitioner to claim the benefit of bail either on merits or on account of delay. 92. It requires to refer herein that the Money Laundering is an economic offence and economic offences come under the grave offences, as has been held by the Hon'ble Apex Court in the case of Y. S Jagan Mohan Reddy Vs. C. B. I., reported in (2013) 7 SCC 439. For ready reference, the relevant paragraph of the aforesaid judgment is being quoted as under: "34. Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offences having deeprooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country." 93. Similarly, the Hon'ble Apex Court in case of Nimgadda Prasad Vs. C.B.I., reported in (2013) 7 SCC 466 has reiterated the same view in paragraph-23 to 25, which reads as under: "23. Unfortunately, in the last few years, the country has be....