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2021 (1) TMI 1115 - HC - Money LaunderingGrant of bail - attachment of London based property - foreign proceeds of crime - siphoning off of funds - criminal conspiracy with Kapil Wadhwan, Promoter Director of M/s.DHFL and others for extending financial assistance to M/s. Dewan Housing Finance Corporation Ltd (DHFL) in lieu of substantial undue benefit to applicant and his family members through companies held by them - HELD THAT:- The proceeds of crime according to complainant involved in this case is ₹ 5050 Crores. It is also revealed that the applicant had siphoned off huge amount out of India through his family/group owned controlled companies. It is found that out of the proceeds of crime of ₹ 600 Crores, ₹ 378 Crores were invested overseas. The investigation in relation to exact foreign proceeds of crime is still under investigation. The applicant and his family members have incorporated or beneficially interest in various companies. The applicant is desperately trying to dispose of his property. He has given online advertisement for sale of his London based property - The said property is attached by ED vide provisional attachment order dated 25th September 2020 being proceeds of crime in terms of Section 2 (1) (u) of PMLA Act. According to complainant if the applicant is released on bail, he will try to sell that property. Further investigation is still in progress. The offence is of serious nature. There is voluminous evidence showing involvement of the applicant in the crime. In the light of nature of evidence, no case for grant of bail is made out. It is settled law that while granting bail the Court has to keeping in mind the nature of accusations, evidence in support thereof. Huge loss of public fund is required to be viewed seriously. The Special Court under PMLA has analysed the material on record - there are no reason to deviate from the said observation. The applicant being MD/CEO of YES Bank has allegedly misused his position to gain undue financial gain to him and his family members. The applicant and his family earned beneficial. The statement of witnesses shows the modus operandi of the accused. Investigation revealed that YES Bank extended loans to entities despite incurring losses. These entities extended loan to company owned by family members of applicant. There was no active or operating business in DUVPL. The loan proposal was approved by DHFL on the basis of standard properties furnished as security by DUVPL, a company owned by daughters of applicant. DUVPL has no business activity and not generating revenue. Investigation revealed that money was laundered to buy properties at several places in India and abroad - There are specific allegations against applicant that he has gained financial benefits. The submissions urged by applicant is in the nature of defense. It cannot be disputed that money lying with YES Bank is public Money. It is settled law that, the Court has to take into consideration nature of accusations, evidence in support, severity of punishment which conviction will entail, reasonable apprehension of witnesses being tampered with larger interest of public/state. It is also settled law that economic loss of public offences involving huge funds to be viewed seriously. On the basis of evidence on record no case for grant of bail is made out - bail application ejected.
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