TaxTMI 
TaxTMI 
2026 (3) TMI 597
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....466, 469, 471, 379, 420 and 474 of the Indian Penal Code against the petitioner. 3. The complainant Mr. Manoj Kumar has stated that the petitioner (Ex Revenue Sub Inspector) was having illegal possession of 17 original registers (Panji-II) out of which several were tampered, along with several property deeds which were the official documents. 4. It is further alleged that the registers seized from the possession of the petitioner is a property as per the definition provided u/s 2 (1)(v) of PMLA, 2002 as it is involved/used in the commission of Scheduled offence and the said registers contained references to several properties which have been acquired in illegal manner including the reference of properties admeasuring 8.86 acres at Shanti Nagar, Bargain, Bariyatu Road, (near Lalu Khatal), illegally acquired and possessed by the co-accused Hemant Soren. 5. It is further alleged that on 21.10.2022, searches were conducted U/s 17 of PMLA Act, 2002 and on 13.04.2023 at several premises including two premises under use and occupation of Bhanu Pratap Prasad (the Petitioner), at Road No. 7, Hill View Road, Bariyatu, Ranchi, Jharkhand and at Jhulan Singh Chowk, Simdega, Jharkhand. ....
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....the accused Bhanu Pratap Prasad had physically inspected the above land on two occasions, that is first in the month of December 2020 (evident from WhatsApp chat between Bhanu Pratap Prasad and Sailesh Kumar, Circle Officer posted in 2020 at Bargain Anchal), and second in the month of January, 2023 (evident from the imaged dated 21.01.2023 recovered from the mobile phone of Bhanu Pratap Prasad) and after inspecting it he had also made certain noting in the said list in his own handwriting. That image of the Simdega and another search was conducted at rental residential places situated at Road No. 7, Hill View Road, Bariatu, Ranchi. 9. After investigation the Enforcement Directorate has filed prosecution complaint No. 06 of 2023 against the petitioner and others under sections 45 r/w 44 Prevention of Money Laundering Act, 2002, for alleged offence under sections 3 and 4 of Prevention of Money Laundering Act, 2002. 10. The Petitioner was initially arrested on 14.04.2023 in a connected matter arising out of ECIR/RNZO/18/2022 and was subsequently produced and arrested in the present ECIR on 03.02.2024. 11. Thereafter the petitioner had preferred a Misc. Cri. Application being ....
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.... It is stated that during search of rental residential places situated at Road No. 7, Hill View Road, Bariatu, Ranchi some registers in total number 17, some loose papers, stuffed in 11 trunks and one H.P. Laptop has been seized, however no any incriminating documents has been recovered from the rental house. and the documents which was seized from the petitioner's house had been kept due to security reason not for any other malicious act and the said seizure is the subject matter of ECIR case No. 01 of 2023 arising out of ECIR/RNZO/18/2022, dated 21.10.2022 also. (vii) When the on-line mutation process and issuance of rent receipt process were started in the Session 2015-16, the sale deeds were used to be uploaded by the petitioner on the website of revenue department. When the Revenue Karamchari, Revenue Sub Inspector and Circle Inspector used to visit on the land for which the applicant applies for mutation then a copy of the sale deed used to be procured from the petitioner for the conveniences and also at the same time it is down loaded by the petitioner and the hard copies of the those sale deeds were seized which were kept in the rental premises in a general mode. The....
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.... (xiv) In the instant case, even if the allegations levelled against the petitioner in the Prosecution Complaint are accepted at its face value and in their entirety; prima facie, the same do not make out a case under Section 3, punishable under Section 4 of the Prevention of Money Laundering Act, 2002, in as much as, such allegations fall short of the essential ingredients for offence of money-laundering under Section 3 of the Prevention of Money Laundering Act, 2002. (xv) The prosecution case is totally based on statements recorded u/s 50 Prevention of Money Laundering Act, 2002 which is not supported by any corroborative admissible evidence on record. (xvi) The petitioner has committed no offence and no proceeds of crime as defined under PMLA has either been generated by him or has been received by him at any point of time. The entire case of the prosecution is based on presumption and assumption without any evidence and hence it can safely be said that the petitioner is an innocent. A close examination of the working and financial background of the petitioner will clearly demonstrate that the story manufactured by the prosecution pertaining to "proceeds of crime" is false....
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....so, serious error has been committed. 14. Further submission has been made in the aforesaid view of the matter as per the ground agitated that 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 15. 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 present bail application is devoid of merit and is liable to be dismissed. The petitioner, a public servant, is a key conspirator in an organized land-grabbing syndicate and actively facilitated the generation of proceeds of crime worth crores of rupees by misusing his official position. (ii) The investigation has unearthed cogent and overwhelming evidence establishing his pivotal role in the commission of the offence of money laundering. The petitioner fails to satisfy the mandatory twin conditions for bail stipulated under Section 45 of the Prevention of Money Laundering Act, 2002 (PMLA), and granting him bail would severely prejudice the ongoing investigation ....
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.... grant of regular bail in favour of the petitioner. Analysis 17. Heard the learned counsel for the parties and perused the documents available on record. 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 PML Act, 2002 (Act 2002) with its object and intent as also the legal proposition as settled by the Hon'ble Apex Court in various judgments. 19. The Act 2002 was enacted to address the urgent need to have a comprehensive legislation inter alia for preventing money-laundering, attachment of proceeds of crime, adjudication and confiscation thereof including vesting of it in the Central Government, setting up of agencies and mechanisms for coordinating measures for combating money-laundering and also to prosecute the persons indulging in the process or activity connected with the proceeds of crime. 20. It is evident that the Act 2002 was enacted in order to answer the urgent requirement to have a comprehensive legislation inter alia for preventing money-laundering, attachment of proceeds of crime, adjudication and confiscation thereof for comba....
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....arification 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 then the property equivalent in value held within 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 indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. 26. Further, the "property" has been defined under Section 2(1)(v) which means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located. 27. The schedule has been defined under Section 2(1)(x) which means schedule to the Prevention of Money Laundering Act, 2002. 28. It is evident that the "scheduled offence" mea....
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....quisition 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, 2002. 33. Section 50 of the Act, 2002 confers power upon the authorities regarding summons, production of documents and to give evidence. 34. The various provisions of the Act, 2002 along with interpretation of the definition of "proceeds of crime" has been dealt with by the Hon'ble Apex Court in the case of Vijay Madanlal Choudhary and Ors. Vs. Union of India and Ors., reported in (2022) SCC OnLine SC 929 wherein the Bench comprising of three Hon'ble Judges of the Hon'ble Supreme Court have decided the issue by taking into consideration the object and intent of the Act, 2002. 35. The predicate offence has been considered in the aforesaid judgment wherein by taking into consideration the explanation as inserted by way of Act 23 of 2019 under the definition of the "proceeds of crime" as contained under Section 2(1)(u), whereby and whereunder, it has been clarified for the purpose of removal of doubts that, the "proceeds of crime" include property not only derived or obt....
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.... 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 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 offence, stringent measures are provided in the 2002 Act for prevention of money laundering and combating menace of money laundering, including for attachment and confiscation of proceeds of crime and to prosecute persons involved in the process or activity connected with the proceeds of crime. In view of the gravity of the fallout of money laundering activities having transnational impact, a special procedural law for prevention and regulation, including to prosec....
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...., the conditions specified under Section 45 are mandatory. They need to be complied with. The Court is required to be satisfied that there 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 is needless to say 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." 42. The Hon'ble Apex Court in the said judgment has further laid down that the twin conditions as to fulfill the requirement of Section 45 of the Act, 2002 before granting the benefit of bail is to be adhered to which has been deal....
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....itioner. 47. It needs to refer herein that while dealing with bail applications under UAP Act 1967, the Hon'ble Apex Court recently in the case of Gurwinder Singh Vs. State of Punjab and Anr., reported in (2024) SCC OnLine SC 109, has observed that the conventional idea in bail jurisprudence vis-à-vis ordinary penal offences that the discretion of Courts must tilt in favour of the oft-quoted phrase - 'bail is the rule, jail is the exception' - unless circumstances justify otherwise - does not find any place while dealing with bail applications under UAP Act and the 'exercise' of the general power to grant bail under the UAP Act is severely restrictive in scope. For ready reference, relevant paragraph of the said judgment is being referred as under: "28. The conventional idea in bail jurisprudence vis-à-vis ordinary penal offences that the discretion of Courts must tilt in favour of the oft-quoted phrase - 'bail is the rule, jail is the exception' - unless circumstances justify otherwise - does not find any place while dealing with bail applications under UAP Act. The 'exercise' of the general power to grant bail under the UAP Act is severely restrictiv....
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.... petitioner Bhanu Pratap Prasad (petitioner), corresponding fraudulent entries were made in the local land records in Ranchi, including the original revenue registers (पंजीII), to reflect the forged ownership and illegally change the land's character, making it saleable. 52. The Petitioner was initially arrested on 14.04.2023 in a connected matter arising out of ECIR/RNZO/18/2022 and was subsequently produced and arrested in the present ECIR on 03.02.2024. Pursuant to the investigation, one main Prosecution Complaint and two Supplementary Prosecution Complaints have been filed before the Learned Special Court (PMLA), Kanchi, detailing the layered roles and interlinkages of members of the land-grabbing syndicate. The Learned Special Court has duly taken cognizance of the offence under Section 3 read with Section 4 of the PMLA against all accused persons named therein. 53. Now coming to the grounds as has been raised on behalf 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. Furthe....
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....3 by the Directorate of Enforcement. It was mentioned in the complaint that the accused Bhanu Pratap Prasad (Ex Revenue Sub-Inspector, Bargai, Ranchi) was having illegal possession of seventeen original registers (पंजी II) (out of which several were tampered) along with several property deeds which were the official documents. The registers seized from the possession of Bhanu Pratap Prasad are properties as per the definition provided under section 2(1)(v) of PMLA, 2002 as it is involved/used in the commission of scheduled offence. The above registers contain references to several properties which have been acquired in illegal manner including the reference of properties admeasuring 8.86 acres at Shanti Nagar, Baragain, Bariyatu Road (near Lalu Khatal) illegally acquired and possessed by the accused Hemant Soren and a property admeasuring 4.83 acres at Muza Gari, khata No 53, Plot Nos 31, 32, 33,35, 36 and 37. 3.3 The above stated documents/register volume were examined and an explanation under section 50 of PMLA was sought from the accused Bhanu Pratap Prasad which further led to the identification of tampering and concealment of the original regis....
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.... on 12 plots at Baragain Anchal, the total area of which is around 8.86 acres were written by him. It revealed that the said property was acquired in illegal and concealed possession of the accused Hemant Soren since. Background of the information shared under section 66(2) of the PMLA, 2002 to the Chief Secretary, Govt. of Jharkhand In one of the investigation under ECIR/RNZO/18/2022, conducted by the Directorate of Enforcement, searches were conducted at several premises including the premises of accused person namely Bhanu Pratap Prasad, Md. Saddam Hussain, Afshar Ali and others on 13.04.2023. The search was conducted in a matter of fraudulent acquisition of a defence possessed land by a group of persons on the basis of fake deed. During searches, several incriminating documents and original government records were recovered and seized from the premises of Bhanu Pratap Prasad, which were found falsified and tampered in order to acquire as well as assist other persons to acquire landed properties in illegal manner. Bhanu Pratap Prasad and six other members of the above stated syndicate including Afshar Ali and Md. Saddam Hussain were arrested on 14.04.2023 under....
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....son Hemant Soren. Several incriminating evidences including transfer of construction plans on the said property in between the accused persons were also recovered from the seized mobile phone of the associate Binod Kumar Singh which further corroborated direct links of the accused person Hemant Soren with the said property. 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 including 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 Afhsar 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. --- 9.10 Investigation revealed that the above stated 8.86 acres property was in concealed possession and use of Hemant Soren and the said Bhanu Pratap Prasad was assisting him in acquisition of the said property. ---- 9.21 From the various documents g....
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....Alauddin, by the involvement of the accused Md. Irshad, who used to work with Makbul Ansari and Md. Alauddin. The said Mabul Ansari and Md. Alauddin are now deceased. This fact has been admitted by the accused person Md. Irsad in his statement dated 24.04.2024 recorded u/s 50 of PMLA, 2002. 57. From the material available on record and also from counter affidavit prima facie it appears that the petitioner alleged to misused his official position as a Revenue Sub-Inspector and custodian of sensitive government records to facilitate a massive land scam and he provided the syndicate with illegal access to original land records and personally carried out or facilitated their forgery and manipulation, thereby enabling the fraudulent acquisition of high-value properties. 58. It has come on record that petitioner's had kept 17 original government registers (पंजी II) and 11 trunks of official documents at his private rented residence for security reasons, however, as a public servant, the petitioner was legally and duty-bound to maintain the custody and sanctity of these records within the designated government office. 59. It has been revealed in the in....
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....its concealment, possession, acquisition or use, therefore, the contention of the learned counsel for the petitioner is not tenable herein. 64. The learned counsel for the petitioner has further contended that case rests solely on the confessional statements under Section 50 of the PMLA and as such it is not admissible as evidence against the petitioner. 65. In the aforesaid context 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. 66. It is evident that the instant case, is supported by a wealth of independent and corroborative evidence, including Physical Evidence as the 17 original tampered registers and 11 trunks of documents seized from the personal custody of the petitioner and further Forged Sale Deeds created and used by the syndicate of which he was alleged to be a pivotal member. Further Handwritten diarie....
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....d 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 course, the authority of the Authorised Officer under the Act to prosecute any person for the offence of money laundering gets triggered only if there exist proceeds of crime within the meaning of Section 2(1)(u) of the Act and further it is involved in any process or activity. 72. Further, it is settled proposition of law that if a person who is unconnected with the scheduled offence, knowingly assists the concealment of the proceeds of crime or knowingly assists the use of proceeds of crime, in that case, he can be held guilty of committing an offence under Section 3 of the PMLA. Therefore, it is not necessary that a person against whom the offence under Section 3 of the PMLA is alleged must have been shown as the accused in the scheduled offence. 73. Herein the 17 seized original government registers are the primary incriminating evidence in this case, as the invest....
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....roceeds 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. Section 2(1)(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. 79. In the instant case the investigation under PMLA was initiated only after the registration of a predicate offence, ie, FIR No. 272/23, which includes offences of cheating and forgery under Sections 420 and 467 of the IPC. Therefore, it cannot be stated that action was taken on an "assumption" rather the 'proceeds of crime in the instant case have been clearly identified as the high-value properties illegally acquired through forgery and further from record it is evident that the illicit cash payments (bribes) received by the petitioner for his role in "knowingly assisting in the cri....
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....on involving exchange of large quantum of money through different channels which needs to be deciphered and therefore in such a scenario if the appellant is released on bail there is every likelihood that he will influence the key witnesses of the case which might hamper the process of justice. Therefore, mere delay in trial pertaining to grave offences as one involved in the instant case cannot be used as a ground to grant bail. Hence, the aforesaid argument on behalf of the appellant cannot be accepted." 85. Thus, on the basis of the aforesaid settled position of law it is evident that mere delay in trial pertaining to grave offences as one involved in the instant case cannot be used as a ground to grant bail. 86. Admittedly, the petitioner has been in judicial custody since February, 2024 but the said incarceration, under the aforesaid circumstances, does not entitle the petitioner to bail. The Hon'ble Supreme Court in Tarun Kumar v. Directorate of Enforcement,2023 SCC OnLine SC 1486, has authoritatively held that while the period of custody may be a relevant factor, it cannot by itself override the gravity of the offence, the seriousness of allegations or the statutor....
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....oner is also eligible for such liberty. 92. Per contra the learned counsel for ED has stated that the petitioner's plea for bail on the grounds of parity is wholly misplaced and untenable because the role of the petitioner is entirely distinct and far more egregious than that of the other co-accused who have been granted bail. 93. Now coming to the ground of parity as raised by the learned counsel for the petitioner, the law is well settled that the principle of parity is to be applied if the case on fact is exactly similar then only the principle of parity in the matter of passing order is to be passed but if there is difference in between the facts then the principle of parity is not to be applied. 94. It is further settled connotation of law that Court cannot exercise its powers in a capricious manner and has to consider the totality of circumstances before granting bail and by only simple saying that another accused has been granted bail is not sufficient to determine whether a case for grant of bail on the 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. Vishan....
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....d on the ground that Pravin (A-10), Kheta (A-15) and Sidhdhrajsinh (A-13) who were armed with sticks had been granted bail. The High Court has evidently misunderstood the central aspect of what is meant by parity. Parity while granting bail must focus upon the role of the accused. Merely observing that another accused who was granted bail was armed with a similar weapon is not sufficient to determine whether a case for the grant of bail on the basis of parity has been established. In deciding the aspect of parity, the role attached to the accused, their position in relation to the incident and to the victims is of utmost importance. The High Court has proceeded on the basis of parity on a simplistic assessment as noted above, which again cannot pass muster under the law." 95. The Hon'ble Apex Court in Tarun Kumar Vs. Assistant Director Directorate of Enforcement (supra) wherein at paragraph-18, it has been held that parity is not the law and while applying the principle of parity, the Court is required to focus upon the role attached to the accused whose application is under consideration. 96. Now, this Court is adverting to the facts of instant case to decide the issue of pa....
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....illegal access to original land records and personally carried out or facilitated their forgery and manipulation, thereby enabling the fraudulent acquisition of high-value properties. 100. Further, 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." 101. 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 co....