TaxTMI 
TaxTMI 
2025 (4) TMI 1743
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.....S.- Sadar, Ranchi against Bhanu Pratap Prasad, Ex- Revenue Sub Inspector, Baragain under Sections 420/465/467/466/469/471/379/474 of the Indian Penal Code. This F.I.R. was the outcome of the information shared with Jharkhand Government under Section 66(2) of PLMA, 2002 which was shared in another case bearing ECIR No. RNZO/18/2022 dated 21.10.2022. 4. In the instant investigation, the scrutiny of voluminous property documents secreted at the premises of Bhanu Pratap Prasad along with the seventeen original registered revealed fresh facts and evidences about illegal activities to acquire several other properties by a syndicate which comprise of Md. Sadam Hussain, Afshar Ali (present petitioner) Bhanu Pratap Prasad, Priya Ranjan Sahay, Bipin Singh and others. 5. The accused persons namely Afsar Ali, Priya Ranjan Sahay and others largely targeted tribal lands whose sale purchase were restricted under CNT Act. Then, they used to make antedated fake deeds either to change the nature of the property (making them general lands) or to create fictitious owners. 6. It is stated that as per para 9.35 to 9.42 of the prosecution complaint the syndicate comprising of this petitioner us....
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.... facts the present petitioner had been taken into remand on 16.04.2024.Accordingly the petitioner had preferred the Misc. Cri. Application No.1546 of 2024 for grant of bail but the same was dismissed vide order dated 24.07.2024 passed by the learned Spl. Judge, PMLA, Ranchi. 13. Hence, the present petition has been preferred for the grant of bail. Argument on behalf of the learned senior counsel for the petitioner: 14. The, learned senior counsel appearing on behalf of the petitioner has taken the following grounds: i. The petitioner is innocent and has falsely been implicated in this case as he has committed no offence as alleged in the prosecution complaint. ii. The petitioner is neither the accused in FIR No. 272 of 2023 registered by Sadar Police Station nor in ECIR Case No. 25 of 2023, which was instituted on 26.06.2023 nor in the prosecution complaint under the PMLA but only on mere suspicion and alleged confession of co-accused the petitioner has been implicated in this case. iii. It has further been submitted that from the remand petition, it is evident that the petitioner has been implicated in this case on the basis of document recovere....
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....riya Ranjan Sahay and others are also involved with Bhanu Pratap Prasad in forgery with respect to property admeasuring 4.83 acres situated at Mauza Gari, Khata no. 53, at Plot no. 31, 32, 33, 35, 36, 38, 72 and 73, Baragain Anchal, Ranchi. The land was identified by Priya Ranjan Sahay, Md. Saddam Hussain, Shekhar Kushwaha and Bipin Singh. For this property, two fake deeds, deed no. 2376 of the year 1940 and other 1954 of the year 1974 were prepared by Saddam Hussain, Md. Afsar Ali and others. Deed No. 2376 of 1940 was written by Makbul Ansari and the deed no. 3954 of 1974 was written by Md. Alauddin, by the involvement of the accused Md. Irshad. (iii) Further, the land admeasuring 4.83 acres is a portion of 37.10 acres land which was purchased from Catholic Credit Co-operative Society by Mangal Mahto and Kaila Mahto through deed no. 2660, entered in book no.I, Volume no.32 from pages 211 to 213 in the year 1939 executed at the office of District Sub-Registrar, Ranchi. In this connection, the related index was also verified and the documents related to the said deed were also obtained from the DSR, Ranchi vide its letter no. 1143 dated 12.07.2023. During investigation, it ....
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.... parity, individual role of the accused must be seen and accused cannot seek bail merely because co-accused person has been granted bail. (vii) The learned counsel contended that prayer for bail of the co-accused persons namely Sanjit Kumar @ Sanjeet Kumar, Md. Irshad and Anand Tirkey @ Antu Tirkey, have already been rejected by this Court vide order dated 21.03.2025 passed in B.A. No. 7501 of 2024, B.A No. 7598 of 2024 and B.A. No. 8022 of 2024 respectively. (viii) The ground has also been taken that in course of investigation, the statement of various persons was recorded which corroborates the role of the petitioner in providing assistance to the accused persons. 17. Learned counsel for the opposite party-ED, based upon the aforesaid grounds, has submitted that since the nature of allegation committed by the present petitioner is serious, as such, the instant bail application is fit to be rejected. Analysis 18. This Court, before appreciating the argument advanced on behalf of the parties, deems it fit and proper to discuss herein some of the provision of law as contained under the Act, 2002 with its object and intent. 19. The Act was enacted to add....
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....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. 24. In the explanation it has been referred that for the removal of doubts, it is hereby clarified 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. 25. 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 offence or the value of any such property or where such property is taken or held outside the country but by way of explanation the proceeds of crime has been given broader implication by including property not only derived or obtained from the scheduled offence but also any property which may directly or indirect....
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....nected 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.]" 30. 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. 31. 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. 32. The punishment for money laundering has been provided under Section 4 of the Act,....
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....ation has been inserted 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, 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. 38. 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-387 and 412. For ready reference, the said paragraphs are being referred as under: "387.............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. Consid....
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.... are reasonable grounds for believing that the accused is not guilty of such offence and he is not likely to commit any offence while on bail. 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. 40. 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). 41. In the judgment ren....
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....y if they are not inconsistent with the provisions of this Act. 45. Therefore, the conditions enumerated in Section 45 of PMLA will have to be complied with even in respect of an application for bail made under Section 439 CrPC. that coupled with the provisions of Section 24 provides 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. 46. Now adverting into fact of the instant case and the allegation levelled against the present petitioner which according to learned counsel for the petitioner is being said that the same cannot be said to attract the ingredient of Section 3 of PMLA, 2002. While on the other hand, the learned counsel appearing for the ED has submitted by referring to various paragraphs of prosecution complaint that the offence is very much available attracting the offence under the provisions of PML Act. 47. This Court, in order to appreciate the rival submission, is of the view that various paragraphs of prosecution complaint upon which the reliance has been placed on behalf of both the ....
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....ed documents and his digital devices were scrutinized. The scrutiny of the mobile phone of Bhanu Pratap Prasad further led to the identification of one 8.80 acres property situated at Shanti Nagar, Behind DAV School, Bariatu, Ranchi, acquired and possessed by Hemant Soren Another property ad measuring (4.83) acres which were acquired by the above stated syndicate of Bharu Pratap Prasad, Afshar Ali and others was also identified. 9.9 As stated above, during investigation, another 4.83 acres property, situated at Cheshire Home Road, Mauja GarI, Ranchi was also identified to be acquired by the accused persons inducing Afshar Ali, Md Saddam Hussain and others in connivance with Bhanu Pratap Prasad. Fake deeds, diaries having hand written cash details were also seized from possession of Md. Saddam Hussain, Imtiyaz Ahmed (an accomplice of Afshar Ali and Saddam Hussain). These entries contained huge cash payments including compensatory payment to Bhanu Pratap Prasad in relation of the above stated 4.83-acre property. 9.17 During further investigation into the role of other associates of Bhanu Pratap Prasad, it has surfaced that a fake deed no. 3985/1940 has been prepared....
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....ted to have given Rs 60.000/ to Md Irshad for writing the deeds. The statement of Md. Irshad was recorded u/s 50 of P'MLA, 2002 on 24.04 2024 in which he admitted to have written the above stated deed and further acknowledged his hand writing in which the said deed was written. 9:35 Investigation reveals that the syndicate used to identify vacant land parcels in Ranchi, where no activity was done. In addition to this the accused persons namely Afshar Ali, Priya Ranjan Sahay and others largely targeted tribal lands whose sale purchase were restricted under CNT Act. Then they used to make antedated fake deeds either to change the nature of the property (making them general lands) or to create fictitious owners. Later with the assistance of officials of circle offices, the original records were falsified so that the land could be acquired by them. In addition, the above 8.86 acres of property as discussed above, the accused persons namely Md. Saddam Hussain, Afshar Ali. Priya Ranjan Sahay and others are involved with Bhanu Pratap Prasad in forgery with respect to property admeasuring 4.83 acres situated at Mauja Gari, Khata no. 53, at Plot No. 31 32,33,35, 36, 38, 72 and ....
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....of Mid Saddam Hussain during search dated 13.04.2023 in ECIR-RNZO/18/2022 which has been discussed above. The accused person Md. Irshad also acknowledged his handwriting on the said correction slip. In addition to the above stated correction slip, on 13.04.2023, pages of register II related to Khata no 53 in the name of Samrendra Chandra Ghoshal were also recovered. The accused person Md. Irshad also admitted to have made the said entries in Register II. The bank account scrutiny of the accused persons namely Sanjit Kumar, Tapas Ghosh, Md. Irshad, and Irshad Akhtar reveals interconnected transactions amongst the said persons. In addition to this frequent cash deposits made into their bank accounts during the period of commission of offence has also been identified. These cash deposits and bank account transactions corroborate the link between the accused persons and also establish the receipt of proceeds of crime in cash, out of which, some portion has been deposited by them in their bank accounts. - 9.41 The accused person Afshar Ali also admitted that another deed no 2376/1940 was prepared by him in relation to a part of land admeasuring 2.83 acres out of the 4.83 acres ....
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....s statement dated 16.04.2024, he admitted about his involvement in making fake deeds 3985/1940 in relation to 6.34 acres property falling under Khata no. 234 of which, plot no. 989 and 996 are in possession of Hemant Soren. He also admitted his involvement in preparation of fake deed no. 3954/1974 and 2376 of 1940 in respect of property admeasuring 4.83 acres at Mauja Gari, Cheshire Home Road, Ranchi. In his statement dated 18.04.2024, he admitted to have re-tampered the fake deed 3954 with Md. Saddam Hussain at Hotel The Peerless Inn, Kolkata. In his statement dated 19.04.2024, he admitted his involvement in fake entries in name of Samrendra Chandra Ghoshal in the correction slip in respect of 4.83 acres property. In his statement dated 22.04.2024, he acknowledged the cash expenses amounting to Rs. 66,56,600/-on account of the 4.83 acres property at Khata no. 53, Mauja Gari.Process and activity connected with proceeds of crime and role of the accused persons in offence of money laundering - Process and activity connected with proceeds of crime and role of the accused persons in offence of money laundering - [16:00, 24/04/2025] Alok: The accused person is....
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....resent value of Rs. 22,61,84,553/- (Urban residential @ Rs 4,68,291/- per decimal as per the revised Circle rate w.e.f 01.08.2023.) Thus, the accused person is directly a party with his coaccused person namely Md. Saddam Hussain, Bhanu Pratap Prasad, Md. Irshad, Bipin Singh, Priya Ranjan Sahay and others in activities connected with the preparation of fake deeds to acquire proceeds of crime (in form of landed properties) and further selling them to acquire further proceeds of crime in movable form, ie, cash and bank balances. Therefore, the accused is knowingly involved in the processes and activities connected with proceeds of crime and hence, has committed the offence of money laundering as defined under section 3 of the PMLA, 2002 and is liable to be punished under section 4 of the PMLA, 2002. 49. It is evident from the prosecution complaint that the instant case ECIR RNZO/25/2023 has been recorded on the basis of the FIR no 272/2023 lodged under sections 465/467/468/469/476/466/420/379/474 of IPC by Sadar PS, Ranchi on the complaint of Manoj Kumar, exCircle Officer, Baragain, Ranchi. 50. The complaint of Manoj Kumar was the result of action taken on the informati....
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....ot be lightly brushed out. 58. Now coming to the contentions as raised by the learned counsel for the petitioner, wherein, he has taken the ground that the petitioner is not accused in the predicate offence, hence, cannot be made liable for money laundering offence. But the contention of the learned counsel appears to be misplaced reason being that it is settled proposition of law that the offence of money laundering is independent of the scheduled offence, particularly in matters related to the proceeds of crime. 59. It is evident that as per Section 3, there are six processes or activities identified therein. They are, (i) concealment; (ii) possession; (iii) acquisition; (iv) use; (v) projecting as untainted property; and (vi) claiming as untainted property. Even if a person does not retain the money generated as proceeds of crime but "uses" it, he will be guilty of the offence of money-laundering, since "use" is one of the six activities mentioned in Section 3. In the instant case the proceeds obtained from alleged activities are laundered through diverse methods, one of which involves making cash deposits in respective bank accounts. This is done in a piecemeal manner wit....
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.... the offence of money laundering. 66. Further, it is evident from the judicial pronouncement as discussed above that in order to constitute any property as proceeds of crime, it must be derived or obtained directly or indirectly by any person as a result of criminal activity relating to a scheduled offence. The explanation clarifies that the proceeds of crime include property, not only derived or obtained from 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. Clause (u) also clarifies that even the value of any such property will also be the proceeds of crime and in the instant case from perusal of paragraph of the prosecution complaint it is evident that the petitioner is not only involved rather his involvement is direct in procuring the proceeds of crime by way of connivance with the other accused persons. 67. At the cost of repetition, it is pertinent to mention here that the offence of money laundering under Section 3 of the Act is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived or obta....
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....mstance. Needless to say, filing of the charge-sheet does not in any manner lessen the allegations made by the prosecution. On the contrary, filing of the charge-sheet establishes that after due investigation the investigating agency, having found materials, has placed the charge-sheet for trial of the accused persons." 74. Thus, this Court, after taking note of the settled legal proposition, is of view that the aforesaid contention is not tenable in the eye of law. 75. Now in the light of aforesaid discussion, at this juncture, this Court thinks it fit to revisit the scope of section 45 of the PML Act 2002. As discussed in preceding paragraphs that Section 45 of the PMLA Act, 2002 provides twin test. First 'reason to believe' is to be there for the purpose of reaching to the conclusion that there is no prima facie case and second condition is that the accused is not likely to commit any offence while on bail. 76. It is, thus, evident by taking into consideration the provision of Sections 19(1), 45(1) and 45(2) of PML Act that the conditions provided therein are required to be considered while granting the benefit of regular bail in exercise of power conferred under Sectio....
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.... 50(4) of PMLA. When such is the sweep of Section 50 of PMLA, the statements have been recorded which has been relied upon in the complaint must be taken to be an important material implicating the petitioner. The statements that were recorded during the investigation has been dealt with in prosecution complaint and many of the statements clearly implicate the petitioner. Therefore, the statements that have been recorded and which has been relied upon, is also a strong material that prima facie establishes the offence of money laundering against the present petitioner. 79. It is pertinent to mention here that the Hon'ble Apex Court in P. Chidambaram v. Central Bureau Investigation reported in 2020 13 SCC 337 has come up with triple test under Section 439 of Cr.PC, while dealing with cases involving economic offences. The principles that were summarized in this judgment is extracted hereunder: "21. The jurisdiction to grant bail has to be exercised on the basis of the well-settled principles having regard to the facts and circumstances of each case. The following factors are to be taken into consideration while considering an application for bail: (i) the na....
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....he basis of parity has been established. Reference in this regard may be made to the judgment rendered by the Hon'ble Apex Court in Ramesh Bhavan Rathod vs. Vishanbhai Hirabhai Makwana, (2021) 6 SCC 230, wherein, it has been held as under: "25. We are constrained to observe that the orders passed by the High Court granting bail fail to pass muster under the law. They are oblivious to, and innocent of, the nature and gravity of the alleged offences and to the severity of the punishment in the event of conviction. In Neeru Yadav v. State of U.P. [Neeru Yadav v. State of U.P., (2014) 16 SCC 508 :], this Court has held that while applying the principle of parity, the High Court cannot exercise its powers in a capricious manner and has to consider the totality of circumstances before granting bail. This Court observed : (SCC p. 515, para 17) "17. Coming to the case at hand, it is found that when a stand was taken that the second respondent was a history-sheeter, it was imperative on the part of the High Court to scrutinise every aspect and not capriciously record that the second respondent is entitled to be admitted to bail on the ground of parity. It can be stated wit....
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.... role attached to the accused whose application is under consideration. 86. Now, this court is adverting into facts of instant case to decide the issue of parity in the backdrop of aforesaid settled legal ratio and further taken into consideration the aforesaid settled position of law, thinks fit to refer herein distinguishable facts in the case of present petitioner to that of the case of co-accused and petitioner of B.A No.4892 of 2024. 87. This Court, in order to verify the application of principle of parity, has gone through the order passed in B.A No.4892 of 2024, by which, co-accused has been enlarged on the bail and found that there is allegation upon the said petitioner about using the State machinery for his own benefit and to frustrate the investigation. 88. The allegation against the petitioner as mentioned in the prosecution at para 9.35 to 9.42 is that the petitioner's syndicate comprising of this petitioner used to identify vacant land parcels in Ranchi, where no activity was done. 89. Further in addition to the 8.86 acres of property, the present petitioner along with accused persons namely Md. Saddam Hussain, Priya Ranjan Sahay and others are also involv....
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.... matter of bail. The economic offences having deep-rooted 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." 95. 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 paragraphs-23 to 25 which reads as under: "23. Unfortunately, in the last few years, the country has been seeing an alarming rise in white-collar crimes, which has affected the fibre of the country's economic structure. Incontrovertibly, economic offences have serious repercussions on the development of the country as a whole. In State of Gujarat v. Mohanlal Jitamalji Porwal [(1987) 2 SCC 364 : 1987 SCC (Cri) 364] this Court, while considering a request of the prosecution for adducing additional evidence, inter alia, observed as under: (SCC p. 371, para 5) "5. ... The entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to book. A murder may be committed in the heat of moment upon....