TaxTMI 
TaxTMI 
2026 (8) TMI 18
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....ur certain entities, resulting in generation of proceeds of crime, which were subsequently layered and laundered through various companies and sub-contractors. The prosecution alleges that the petitioner, a former Minister for Civil Supplies, abused his political influence by facilitating the induction of M/s. Sree Sudarsana Constructions as a sub-contractor, participated in the diversion and utilization of proceeds of crime, and derived benefits through his family members and associated entities. 3. Heard Sri G.Ashok Reddy, learned counsel appearing for the petitioner, and Sri D. Narender Naik, learned Standing Counsel appearing for the Directorate of Enforcement. 4. The contention of learned counsel for the petitioner is that the petitioner has been falsely implicated due to his political background and relationship with his son, without there being any direct material connecting him with the alleged offence. He contended that the petitioner had no role in the award of the APSBCL transportation contracts or in the generation of the alleged proceeds of crime, and that no proceeds of crime have been traced to his account. It is further submitted that the allegations are prima....
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....ner was instrumental in facilitating the transactions between M/s. Sigma Supply Chain Solutions Private Limited (SSCSPL) and M/s. Sree Sudarsana Constructions, the latter being a concern belonging to the petitioner's son. It is further contended that although no amount was directly credited to the petitioner's account, he managed the affairs relating to the contract, and therefore, the mere absence of direct financial transfers to his account does not entitle him to anticipatory bail. 7. Having considered the above submissions, it is evident that the alleged amounts were transferred to the accounts of the petitioner's son, daughter-in-law, and wife, and not to the petitioner himself. However, the Vigilance Report specifically states that the petitioner facilitated the entrustment of the sub-contract to SSCSPL and retained only 15% of the project while the remaining amount was released through bills. The remand report also alleges that the petitioner was the person behind in awarding of contract. Therefore, merely because no amount was directly transferred to the petitioner's account, it cannot be concluded, at this stage, that he is entitled to anticipatory bail.....
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....al courts and the High Courts attempt to play safe in matters of grant of bail. The principle that bail is a rule and refusal is an exception is, at times, followed in breach. On account of non-grant of bail even in straightforward open-and-shut cases, this Court is flooded with huge number of bail petitions thereby adding to the huge pendency. It is high time that the trial courts and the High Courts should recognise the principle that "bail is rule and jail is exception." 16. Coming back to the scope of inquiry under Section 45, Vijay Madanlal Choudhary [Vijay Madanlal Choudhary v. Union of India, (2023) 12 SCC 1], while reiterating and agreeing with the holding in Ranjitsing Brahmajeetsing Sharma v. State of Maharashtra [Ranjitsing Brahmajeetsing Sharma v. State of Maharashtra, (2005) 5 SCC 294 : 2005 SCC (Cri) 1057], held that the court while dealing with the application for grant of bail in PMLA need not delve deep into the merits of the case and only a view of the court based on the available material available on record is required. It held that the court is only required to place its view based on probability on the basis of reasonable material collected during inv....
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....ave committed the offence. 45. It is, furthermore, trite that for the purpose of considering an application for grant of bail, although detailed reasons are not necessary to be assigned, the order granting bail must demonstrate application of mind at least in serious cases as to why the applicant has been granted or denied the privilege of bail. 46. The duty of the court at this stage is not to weigh the evidence meticulously but to arrive at a finding on the basis of broad probabilities. However, while dealing with a special statute like MCOCA having regard to the provisions contained in sub-section (4) of Section 21 of the Act, the court may have to probe into the matter deeper so as to enable it to arrive at a finding that the materials collected against the accused during the investigation may not justify a judgment of conviction. The findings recorded by the court while granting or refusing bail undoubtedly would be tentative in nature, which may not have any bearing on the merit of the case and the trial court would, thus, be free to decide the case on the basis of evidence adduced at the trial, without in any manner being prejudiced thereby." 303. ....
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....cement [(2019) 9 SCC 24; (2019) 3 SCC (Cri) 509; 2019 SCC OnLine SC 1143.], it was observed as under [ See page 57 of (2019) 9 SCC.] : "Grant of anticipatory bail in exceptional cases 69. Ordinarily, arrest is a part of procedure of the investigation to secure not only the presence of the accused but several other purposes. Power under section 438 of the Code of Criminal Procedure is an extraordinary power and the same has to be exercised sparingly. The privilege of the pre-arrest bail should be granted only in exceptional cases. The judicial discretion conferred upon the court has to be properly exercised after application of mind as to the nature and gravity of the accusation; possibility of the applicant fleeing justice and other factors to decide whether it is a fit case for grant of anticipatory bail... 71. Article 21 of the Constitution of India states that no person shall be deprived of his life or personal liberty except according to procedure prescribed by law. However, the power conferred by article 21 of the Constitution of India is not unfettered and is qualified by the later part of the article, i.e., '... except according to a procedure pres....
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....ri) 514; 2010 SCC OnLine SC 1375.] and other judgments and observing that anticipatory bail can be granted only in exceptional circumstances, in Jai Prakash Singh v. State of Bihar [(2012) 4 SCC 379; (2012) 2 SCC (Cri) 468; 2012 SCC OnLine SC 259.], the Supreme Court held as under : (SCC page 386, paragraph 19) '19. Parameters for grant of anticipatory bail in a serious offence are required to be satisfied and further while granting such relief, the court must record the reasons therefor. Anticipatory bail can be granted only in exceptional circumstances where the court is prima facie of the view that the applicant has falsely been enroped in the crime and would not misuse his liberty. (See D.K. Ganesh Babu v. P.T. Manokaran [(2007) 4 SCC 434; (2007) 2 SCC (Cri) 345; 2007 SCC OnLine SC 274.], State of Maharashtra v. Mohd. Sajid Husain Mohd. S. Husain [(2008) 1 SCC 213; (2008) 1 SCC (Cri) 176; 2007 SCC OnLine SC 1235.] and Union of India v. Padam Narain Aggarwal [(2008) 13 SCC 305; (2009) 1 SCC (Cri) 1; 2008 SCC OnLine SC 1500.].' Economic offences 78. Power under section 438 of the Code of Criminal Procedure being an extraordinary remedy, has to be exerci....
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....upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even-handed manner without fear of criticism from the quarters which view white-collar crimes with a permissive eye unmindful of the damage done to the national economy and national interest.'" 21. Recently in Srikant Upadhyay v. State of Bihar [2024 SCC OnLine SC 282.], a very pertinent observations have been made with regard to the powers of the court to grant anticipatory bail under section 438 of the Code of Criminal Procedure. It has been observed that: "9. It is thus obvious from the catena of decisions dealing with bail that even while clarifying that arrest should be the last option and it should be restricted to cases where arrest is imperative in the facts and circumstances of a case, the consistent view is that the grant of anticipatory bail shall be restricted to exceptional circumstances. In other w....
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....utious as the grant of interim protection or protection to the accused in serious cases may lead to miscarriage of justice and may hamper the investigation to a great extent as it may sometimes lead to tampering or distraction of the evidence. We shall not be understood to have held that the court shall not pass an interim protection pending consideration of such application as the section is destined to safeguard the freedom of an individual against unwarranted arrest and we say that such orders shall be passed in eminently fit cases. At any rate, when warrant of arrest or proclamation is issued, the applicant is not entitled to invoke the extraordinary power. Certainly, this will not deprive the power of the court to grant pre-arrest bail in extreme, exceptional cases in the interest of justice. But then, person(s) continuously, defying orders and keep absconding is not entitled to such grant." 10. Learned Standing counsel also relied on the judgments of Hon'ble the Supreme Court in P.Chidambaram Vs Directorate of Enforcement Criminal Appeal No.1340 of 2019 (Arising Out of SLP (Crl.) No.7523 of 2019 and Amanatullah Khan V Directorate of Enforcement 2024 SCC Online Del 1658, wh....
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....d, out of which 7 were considered by the Delhi High Court. These statements are admissible in evidence, in view of Section 50 of the Act of 2002. The same makes out a formidable case about the involvement of the appellant in commission of a serious offence of money laundering. It is, therefore, not possible for us to record satisfaction that there are reasonable grounds for believing that the appellant is not guilty of such offence..." (Emphasis supplied) 31. Furthermore, the challenge to Section 50 of PMLA was rejected by the Hon'ble Apex Court in case of Vijay Madanlal Choudhary (supra), wherein it was held that the statements recorded under Section 50 of PMLA cannot be compared to statements under Section 67 of NDPS Act, and that such statements were not in violation of Article 20(3) of the Constitution of India. 74. This Court cannot allow a new jurisprudence or different sets of rules to prevail regarding investigation qua 'classes' & 'masses' by each time permitting an excuse or request that being a public figure, being an MLA, Chairman of the Waqf Board and being busy with some activities of his constituency, he could not appear before the inve....