TaxTMI 
TaxTMI 
2026 (9) TMI 421
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....ined to maintenance and troubleshooting of IT infrastructure, and he had no part in management, financial transactions, accounting, or operational decisions of the entity. He further contended that petitioner was not a signatory to any bank account and had no role in financial dealings or irregularities. Till date, no formal complaint under Section 44 read with Section 45 of the PML Act has been filed against him before the competent Special Court, and mere issuance of summons for investigation does not justify custodial interrogation or arrest. In connection with the same offence, an FIR was registered under Section 420 IPC vide FIR No.902 of 2023 at P.S. Madhapur, where he was arrayed as Accused No.4, arrested, and later released on bail. The CBI also registered a case vide RC2312026S0007 dated 29.01.2026 based on the same cause of action, but the petitioner was not named in that FIR. The petitioner contends that mandatory provisions of the PML Act have not been strictly complied with, and procedural safeguards have been ignored, thereby vitiating any coercive action contemplated against him. Learned counsel further contended that there is no likelihood of absconding, and all rel....
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....her it is a fit case for grant of anticipatory bail. Grant of anticipatory bail to some extent interferes in the sphere of investigation of an offence and hence, the court must be circumspect while exercising such power for grant of anticipatory bail. Anticipatory bail is not to be granted as a matter of rule and it has to be granted only when the court is convinced that exceptional circumstances exist to resort to that extraordinary remedy. 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 prescribed by law". In State of M.P. v. Ram KishnaBalothia [State of M.P. v. Ram Kishna Balothia, (1995) 3 SCC 221 : 1995 SCC (Cri) 439], the Supreme Court held that the right of anticipatory bail is not a part of Article 21 of the Constitution of India and held as under: (SCC p. 226, para 7) "7. ... We find it difficult to accept the contention that Section 438 of the Code of Criminal P....
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....he time he is interrogated. Very often interrogation in such a condition would reduce to a mere ritual. The argument that the custodial interrogation is fraught with the danger of the person being subjected to third-degree methods need not be countenanced, for, such an argument can be advanced by all accused in all criminal cases. The Court has to presume that responsible police officers would conduct themselves in a responsible manner and that those entrusted with the task of disinterring offences would not conduct themselves as offenders." 78. Power under Section 438 CrPC being an extraordinary remedy, has to be exercised sparingly; more so, in cases of economic offences. Economic offences stand as a different class as they affect the economic fabric of the society. In Directorate of Enforcement v. Ashok Kumar Jain [Directorate of Enforcement v. Ashok Kumar Jain, (1998) 2 SCC 105 : 1998 SCC (Cri) 510], it was held that in economic offences, the accused is not entitled to anticipatory bail. 79. The learned Solicitor General submitted that the "scheduled offence" and "offence of money laundering" are independent of each other and PMLA being a special enactment app....
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....nsel and a thorough examination of the record, this Court observes that the primary contention of learned counsel for the petitioner is that petitioner's prior arrest by the investigating authority in connection with the predicate offence, coupled with the seizure of all relevant documents, renders unnecessary the petitioner's arrest under the PML Act. Further, it is submitted that all documents pertaining to the predicate offence are already in the possession of the Police. Further, it is contended that the Court must strike a delicate balance between protecting the fundamental rights of individuals and pursuing public interest, exercising caution in authorizing arrests to avoid repercussions on the life and liberty of individuals. 7. As observed by the Hon'ble Supreme Court in the case of Arvind Kejriwal V ED [2024 SCC online SC 1703] reaffirmed the principle established in Vijay Madanlal Choudhary, wherein it was held that when an individual applies for bail or anticipatory bail under the PML Act, the conditions stipulated in Sections 437, 438, and 439 of the Code of Criminal Procedure (CrPC) would equally apply, in addition to Section 45 of the PML Act. The Court....
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....e accused. Furthermore, the power of the investigating agency to arrest is not unfettered, and must be exercised in accordance with the provisions of the Code of Criminal Procedure. However, in cases involving economic offences, the Court must be cautious in granting anticipatory bail, as it may frustrate the efforts of the investigating agency to gather evidence and bring the accused to justice. Ultimately, the grant of anticipatory bail is a matter of judicial discretion, which must be exercised in a judicious and cautious manner, taking into account the peculiar circumstances of each case. 9. This Court observes that a Division Bench of the High Court of Judicature at Bombay, Nagpur Bench, in its judgment dated 28.01.2022, in Ajay Kumar vs. DOE [2022 SCC Online Bom 196] held that the twin conditions under Section 45 of the PML Act stand revived after the 2018 amendment. Section 45 of the PML Act prescribes two conditions for granting bail: firstly, the Public Prosecutor must be given an opportunity to oppose release of the accused; and secondly, the Court must be satisfied, based on reasonable grounds, that the accused is not guilty of the alleged offence and is unlikely to c....