TaxTMI 
TaxTMI 
2026 (9) TMI 1761
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....as meant for NSCN(IM), and formed part of funds raised for the organisation through extortion and illegal taxation. The investigation was thereafter taken over by the National Investigation Agency ["NIA"] and RC No. 26/2019/NIA/DLI was registered. The Applicant, though not named in the original FIR, was subsequently arrayed as an accused. The NIA charge-sheet proposes his prosecution under Sections 120-B, 201, 384, 465 and 467 of the Indian Penal Code, 1860 ["IPC"] and Sections 17, 18, 20 and 21 of the Unlawful Activities (Prevention) Act, 1967. 3. Some of the offences invoked in the NIA case are scheduled offences under the PMLA. Based on these predicate offences, ED registered the present ECIR. The Applicant was arrested in this case on 18th October, 2022 while he was already in custody in the NIA proceedings. Alemla Jamir was arrayed as Accused No. 1, the Applicant as Accused No. 2 and M/s A.J. Agency as Accused No. 3 in the original prosecution complaint. A supplementary complaint subsequently brought in another accused, Tanton Muivah. 4. ED's case is that funds collected through extortion and illegal taxation were routed through numerous bank accounts in the names of Ale....
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....erial would bear. The accounts in question were substantially operated at the instance of Alemla Jamir and the transactions now relied upon by ED do not, by themselves, establish that the Applicant knew the source of the funds or consciously participated in their laundering. He emphasises that the Applicant is a serving government employee; the investigation is complete; the complaint as well as the supplementary complaint have already been filed; and the banking and other documentary material is in the possession of the investigating agencies. Mr. Srivastava also places considerable reliance on the Applicant's incarceration since 18th October, 2022, which has crossed one-half of the maximum sentence prescribed for the offence, particularly when the trial is progressing slowly and Alemla Jamir has since been enlarged on bail in both the predicate and PMLA proceedings. 9. Mr. Vivek Gurnani, counsel for ED, on the other hand, submits that the Applicant's role cannot be reduced to that of an account holder who merely permitted Alemla Jamir to use his accounts. Reliance is placed on the transactions undertaken by the Applicant himself, particularly after her arrest, including substa....
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....'s involvement, directly or indirectly, in a process or activity connected with proceeds of crime. In the present case, ED relies upon more than the mere existence of the accounts. It refers to withdrawals and deposits made by the Applicant himself, transactions undertaken after Alemla Jamir's arrest, and the statement of P. Impty to contend that the Applicant was knowingly involved in handling and moving the funds. 13. There is, therefore, material which prima facie supports the prosecution case. At the same time, the explanation offered by the Applicant cannot, at this stage, be dismissed as a bare denial. His consistent case is that Alemla Jamir substantially controlled the accounts and that several transactions were undertaken at her instance. Even the withdrawal of INR 54.71 lakh, on which ED places reliance, is stated in the complaint itself to have been made on her instructions. Likewise, the Applicant disputes the inference which ED seeks to draw from the other withdrawals, deposits and transfers. Whether these circumstances establish that he knew the criminal source of the funds and consciously participated in their laundering is not self-evident merely from the movemen....
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....Cr.P.C. The nominal roll records that by 23rd July, 2026 he had already undergone three years, nine months and six days in custody. He is now approaching four years of incarceration. 18. Section 436A Cr.P.C. was also considered by the Special Judge. The Judge was correct in observing that the provision does not confer an absolute right comparable to default bail. Vijay Madanlal Choudhary itself says so. At the same time, the Supreme Court emphasised that Section 436A is a beneficial provision founded upon the constitutional right to a speedy trial under Article 21. Where an accused has undergone one-half of the maximum period of imprisonment and the trial remains pending, the provision assumes particular significance in considering whether further detention is justified. 19. That principle was applied in Ajay Ajit Peter Kerkar v. Directorate of Enforcement 2024 SCC OnLine SC 4055., where the Supreme Court dealt specifically with an accused under the PMLA who had undergone one-half of the maximum period of imprisonment and directed his release on bail under Section 436A Cr.P.C. The statutory protection against excessive undertrial detention therefore operates in PMLA proceedin....
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....here is, of course, an additional feature here. The predicate prosecution is under the UAPA and the allegations are serious. That circumstance has been kept in view. However, seriousness cannot be the complete answer to the length of custody in the PMLA case. The two prosecutions are distinct, and the maximum punishment with which this Court is presently concerned remains seven years. Arvind Dham reiterates that Article 21 is not eclipsed by the nature of the accusation. 25. Mr. Gurgani has also pointed to the pendency of the predicate case. Section 479(2) of the BNSS requires the pendency of multiple offences or proceedings to be taken into account while considering release on bail. It does not, however, preclude the Court from granting bail once the prescribed period of custody has been undergone. This Court has recently taken that view in Leena Paulose v. Directorate of Enforcement 2026:DHC:3809., holding that Section 479 has to be read as a whole and in its constitutional setting. Multiple proceedings remain a relevant factor; they do not by themselves extinguish the protection against prolonged undertrial detention. 26. The fact that Alemla Jamir has obtained bail both i....