TaxTMI 
TaxTMI 
2025 (10) TMI 1444
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....lligence (DRI), Nagpur and Chennai, on the basis of specific intelligence, initiated investigation under Customs Act, 1962 against syndicate led by applicant for smuggling of red sanders to Dubai. 2. The applicant came to be arrested on 22.05.2025 in Chennai and lodged in judicial custody on obtaining transit order from the Chief Metropolitan Magistrate, Egmore, Chennai. The investigation under the provisions of the PMLA was initiated by the Revenue Intelligence Agency, Nagpur under Section 135 of the Customs Act, 1962 and Section 120-B of the Indian Penal Code which are scheduled offences under Part-A of the PMLA. 3. As per case of the prosecution, offender attempted illicit export of concealed red sanders in the form of normal cargo....
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....cial scrutiny. Further, emphasis was supplied by the learned Advocate for the applicant on the observations made in Writ Petition (Criminal) No.336/2018 (Radhika Agarwal vs Union Of India & Others), decided on 27.02.2025 wherein it was held by the Apex Court that there has to be strong "Reasons to Believe" to be recorded in writing, necessitating arrest has to be satisfied. 6. Mr. Shukul, learned Advocate for the non-applicant, opposed the application. He submitted that the offence under Section 135 of the Customs Act, 1962 and Section 120-B of the I.P.C are scheduled offences under Part-A of the PMLA. The seizure of 42.115 MTS of red sanders valued at Rs.16.84 crores with a total illicit value of Rs.63.64 crores clearly establishes t....
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....nd the applicant cannot claim bail as a matter of right. He has further argued that the applicant failed to satisfy the mandatory twin conditions prescribed under Section 45(1) of the PMLA. Considering the scale of the offence, its organized nature and the applicant's central role in orchestrating the illicit exports through a syndicate network involving foreign entities there exist reasonable grounds to believe that he is guilty of the alleged offence. Moreover, the applicant has not demonstrated that he is unlikely to commit an offence while on bail. Therefore, the stringent conditions under Section 45(1) of the said Act squarely apply. Hence, prayed to reject the application. 9. I have heard both sides at length and perused the record....
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....prima facie case supported by material evidence is sufficient to invoke an offence under Section 3 of the PMLA. 13. The learned Advocate for the non-applicant has placed reliance on the observations in Amar S. Mulchandani V/s. Directorate of Enforcement and others reported in 2024 SCC OnLine Bom 3327 as follows:- "The Enforcement Directorate represented by the Additional Solicitor General Mr Anil Singh urged that investigation of the crime by ED is an independent investigation and once ECIR is registered then the base/predicate/scheduled offence, is no more required for taking it to its logical end under the PMLA and the scheduled offence is necessary only for registration of an offence under PMLA and thereafter whatever may hap....
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....lly laid down in the said decision that the statements recorded by the authorities under Section 50 PMLA are not hit by Article 20(3) or Article 21 of the Constitution, rather such statements recorded by the authority in the course of inquiry are deemed to be the judicial proceedings in terms of Section 50(4), and are admissible in evidence, whereas the statements made by any person to a police officer in the course of an investigation under Ch.XII of the Code could not be used for any purpose, except for the purpose stated in the proviso to Section 162 of the Code. In view of such glaring inconsistencies between Section 50 PMLA and Sections 160/161CrPC, the provisions of Section 50 PMLA would prevail in terms of Section 71 read with Sectio....
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....basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and/or pending enquiry/trial including by way of criminal complaint before the competent forum. If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the court of competent jurisdiction, there can be no offence of money laundering against him or any one claiming such property being the property linked to stated scheduled offence through him. 382.20. As regards the prayer for grant of bail, irrespective of the nature of proceedings, including those under Section 438 of the 1973 Code or even upon invoking the jurisdiction of constitutional cou....