TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 623
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctions 3 and 4 of the Prevention of Money Laundering Act, 2002, pending in the Court of Learned District and Sessions Judge cum Special Judge PMLA, Patna. 3. The petitioner remains in judicial custody since 19.10.2024. Petitioner has two criminal antecedents which are, (1) Rupaspur P.S. Case No. 18/2023 and; (2) Rajnagar P.S. Case No. 124/2024. 4. The factual background of the prosecution case (i) The Directorate of Enforcement (in short the 'ED') registered ECIR No. PTZO/04/2024 dated 14.03.2024 on the basis of predicate/scheduled offences in Rupaspur P.S. Case No. 18/2023 dated 09.01.2023 and addendum ECIR dated 20.09.2024 registered on the basis of Special Vigilance Unit P.S. Case No. 05/2024 dated 14.09.2024. (ii) After completion of the investigation, the ED has filed complaint under section 44 and 45 of the PMLA Act, 2002 vide prosecution complaint dated 16.12.2024. From perusal of complaint, it reveals that the gist of investigation conducted under PMLA 2002 has been incorporated. More specifically, the under para 11.3 at Page 162 of the prosecution complaint, the findings with respect to petitioner has been incorporated. Under Para ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the petitioner Gulab Yadav filed Cri. Misc. No. 29542 of 2023 before Hon'ble Patna High Court challenging the order dated 06.01.2023 passed by the Learned ACJM 1st Class, Danapur under section 156(3) of Cr.P.C. and also for quashing of Rupaspur P.S. Case No. 18.2023. Vide order dated 11.05.2023 further proceeding in connection with complaint case no. 1122(C) of 2021, was stayed by Hon'ble Patna High Court. 7. Mr. Samdarshi, submitted that since the FIR pertaining to predicate offence was quashed by Hon'ble Patna Court, the Directorate of Enforcement, was left high and dry with respect to survival of the said ECIR No. PTZO/04/2024 dated 14.03.2024 in light of the judgment of Hon'ble Apex Court as available through Vijay Madanlal Choudhary Vs Union of India since reported in 2022 SCC Online SC 929, which has been followed in catena of judgements being passed by the Hon'ble Apex Court as well as by various other High Courts, whereunder it is no more res integra that in absence of predicate/ scheduled offence due to either acquittal or discharge or quashing thereof, no proceedings under PML Act, 2002 could survive. 8. It is further submitted by Mr. Sandarshi tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lmohar Flat No. 26, Sector -2 Indranayani Nagar, Bhosari, Near Nana Nani Park, Pune. One Samsung Fold 5 mobile One Apple Iphone 14 belonging to Roshan Gulab Yadav, son of Gulab Yadav. 4. 16.07.2024 Residential premises of Gulab Yadav situated at 684/29 Mithila Niwas, Adinath Nagar, Bhosari, Pune Document running into 185 pages 5. 16.07.2024 Premises of Gulab Yadav situated at Flat no. 402, Shyam Bindeshwar Apartment, Sharma Path, Rukanpura Patna Details of Bank account and investment in policies. 6. 16.07.2024 Premises of Ambika Gulab Yadav Bunglow 25 MLC quarters Veerchand Patel Road, Patna Iphone 15 of Gulab Yadav Iphone 14 Pro of Ambika Gulab Yadav 7. 16.07.2024 Residential premises of Gulab Yadav at Madhubani Loose sheet of page 1-75 8. 16.07.2024 Premises of M/s Progrowth Enterprises Loose sheet of Pages 1-132 12. Arguing further, Mr. Samdarshi submitted that petitioner was also summoned to appear before the ED and petitioner duly complied with the same and extended full cooperation in the investigation of ED, but despite p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion 420, Directorate of Enforcement, in fact, travelled beyond the same into the realm of disproportionate assets and has hopelessly tried to create a new predicate offence. 18. In support of cash deposit of Rs. 5.62 Crores in the bank account of petitioner and his family members, it is submitted that cash deposit was received in form of donations received for contesting the elections and income from agriculture and rental, which is duly accounted and reflected in the income tax returns. It is pointed out that as per prosecution complaint, cash deposit in the bank account of Ambika Gulab Yadav, Gulab Yadav, Madhavi Gulab Yadav, Priyanka Gulab Yadav, Sindhu Gulab Yadav has been taken into account. 19. Explaining further, it is submitted that source of income of petitioner namely, Gulab Yadav is agriculture activities, rental and business proceeds. Source of Ambika Gulab Yadav is agriculture, rental and business proceeds. It is pointed out that source of income of Madhavi Gulab Yadav is rental, business proceeds and tuition fee, whereas the source of income of Sindhu Gulab Yadav is rental income of Ambika Yadav, and her professional income as she is the lawyer and also tuition ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....titioner, the petitioner also extended financial support to the Devinder Singh over a period of 10 years. The money was sourced from the proceeds of sale of scrap of Tirhut Industries Sugar Mills. The money was provided as loan and till date stands as loan in the books of account of the petitioner, which was also admitted by Devinder Singh. 24. It is also explained by Mr. Samdarshi that as far payment of Rs. 29 Lakhs alleged to be given to Gayatri Kumari, who is the informant of Rupaspur P.S. Case no. 18/2023 but one of the co-accused in Special Vigilance Unit P.S. Case No. 05/2023, is on the basis of chit of paper and statement of Gayatri Kumari, whereas this petitioner made a statement before ED clarified that some payment has been made to her as fee for rendering legal services as she is an advocate. Petitioner has no connection with M/s Bansidhar Construction for awarding any tender and same is also not in his knowledge, therefore, receiving of Rs. 85 Lakhs from M/s Bansidhar Construction is without any cogent material. 25. It is also submitted that property purchased with Praveen Chaudhary was never transferred to this petitioner and moreover, same was also sold by Prade....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s fleeing away and therefore, he satisfies the triple test as available through P. Chidambaram Vs. ED since reported in 2019 SCC OnLine SC 1549. Mr. Samdarshi also relied upon the para 19 of the judgment of Hon'ble Supreme Court as available through Javed Gulam Nabi Shaikh Vs. State of Maharastra & Ors. since reported in 2024 SCC Online SC 1693 qua speedy trial, which reads as under: "If the State or any prosecuting agency including the court concerned has no wherewithal to provide or protect the fundamental right of an accused to have a speedy trial as enshrined under Article 21 of the Constitution then the State or any other prosecuting agency should not oppose the plea for bail on the ground that the crime committed is serious. Article 21 of the Constitution applies irrespective of the nature of the crime." 31. It is pointed out that in the present case 79 witnesses are to be examined and 148 documents running into 26439 pages are to be exhibited, where still trial to begins and, therefore, the petitioner cannot be kept behind the bar for indefinite period against maximum sentence of seven years on cost of his fundamental right qua speedy trial. Submission on behalf ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng to a scheduled offence already accomplished. Similarly, in the event the person named in the criminal activity relating to a scheduled offence is finally absolved by a court of competent jurisdiction owing to an order of discharge, acquittal or because of quashing of the criminal case (scheduled offence) against him/her, there can be no action for money laundering against such a person or person claiming through him in relation to the property linked to the stated scheduled offence. This interpretation alone can be countenanced on the basis of the provisions of the 2002 Act, in particular Section 2(1)(u) read with Section 3. Taking any other view would be rewriting of these provisions and disregarding the express language of the definition clause "proceeds of crime", as it obtains as of now." 134. From the bare language of Section 3 of the 2002 Act, it is amply clear that the offence of money laundering is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived or obtained as a result of criminal activity relating to or in relation to a scheduled offence. The process or activity can be in any form - be it one ....