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Rohit Tandon Versus The Enforcement Directorate

2017 (11) TMI 779 - SUPREME COURT

Bail application - offence u/Sections 3 & 4 of the Prevention of Money Laundering Act, 2002 - mmunity to the appellant from prosecution for an offence of money laundering - nature of offence - Held that:- The fact that no limit for deposit was specified, would not extricate the appellant from explaining the source from where such huge amount has been acquired, possessed or used by him. The volume of demonetized currency recovered from the office and residential premises of the appellant, includi .....

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does not extricate the appellant from disclosing the source of its receipt. No provision in the taxation laws has been brought to our notice which grants immunity to the appellant from prosecution for an offence of moneylaundering. The argument of the appellant that there is no allegation in the chargesheet filed in the scheduled offence case or in the prosecution complaint that the unaccounted cash deposited by the appellant is the result of criminal activity, will not come to the aid of the ap .....

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idered opinion of the Sessions Court and the High Court rejecting the prayer for grant of regular bail to the appellant. However, considering the fact that the appellant is in custody since 28th December, 2016 and the offence is punishable with imprisonment for a term extending to seven years only, but not less than three years, the Trial Court will be well advised to proceed with the trial on day today basis expeditiously. We clarify that the Trial Court must examine the evidence/material broug .....

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Application No.119 of 2017 and Criminal M.B. No.121 of 2017 has been assailed. The appellant was arrested on 28th December, 2016 in connection with ECIR/18/DZII/ 2016/AD(RV) registered under Sections 3 & 4 of the Prevention of MoneyLaundering Act, 2002 (hereinafter referred to as the Act of 2002 ). The said ECIR was registered on 26th December, 2016 as a sequel to FIR No.205/2016 dated 25th December, 2016 in relation to the offences punishable under Sections 420, 406, 409, 468, 471, 188 and .....

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Criminal Procedure, 1973 read with Section 45 of the Act of 2002. The said bail application came to be rejected vide judgment dated 7th January, 2017 by the said Court. The appellant thereafter approached the High Court of Delhi at New Delhi by way of Bail Application No.119 of 2017 and an interlocutory application filed therein, being Criminal M.B. No.121 of 2017. The High Court independently considered the merits of the arguments but eventually rejected the prayer for bail vide impugned judgme .....

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noted in the ECIR read thus: A. It is reported that during the course of investigation of Case FIR No.242/16 u/s 420, 467,468,471, 120B IPC, PS C.R. Park, Delhi, it is revealed that Accused Raj Kumar Goel along with associates are engaged into earning profits by routing money into various accounts by using forged documents and thereby receiving commission from the prospective clients who either need money by cheque or in cash. In order to obtain large profits, accused Raj Kumar Goel and few of h .....

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n huge profit by converting black money in the form of old currency notes into new currency notes. In this conspiracy, the said CA acted as a mediator and arranged prospective clients who intended to convert their black money into legitimate money. For the same, alleged CA offered 2% commission to the other accused persons on all such transactions. C. The accused were having bank accounts in the Naya Bazar branch of Kotak Mahindra Bank but the CA and Bank Manager Ashish asked accused Raj Kumar t .....

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aj Kumar Goel, Bank Manager Ashish, CA along with their associates are involved in a deep roted conspiracy and were indulged in converting old currency which were entrusted to bank/Govt officials and were supposed to be delivered to general public/guidelines issued by the Reserve Bank of India/Ministry of Finance and hand thus cheated the public at large. The accused persons have also caused monetary loss to the Govt. of India and thereby Committed offences u/s 420, 406, 409, 467, 468, 471, 188, .....

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e under Section 3 punishable under Section 4 of the Act of 2002 was made out and accordingly the case is being registered and taken up for investigation under the Act of 2002 and rules framed thereunder. 4. The learned Sessions Judge while considering the bail application adverted to the relevant materials including the CDR analysis of Mobile number of Ashish Kumar, Branch Manager, Kotak Mahindra Bank, K.G. Marg Branch, Kamal Jain, CA of Rohit Tandon (hereinafter referred to as appellant ), Dine .....

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zed currency on commission basis. Further, the investigation also revealed that the entire cash was collected on the instructions of the appellant herein, by Ashish Kumar, Raj Kumar Goel and others through Dinesh Bhola, an employee of the appellant. According to the prosecution, all the associates of the appellant acted on instructions of the appellant for getting issued the demand drafts against cash deposit with the help of Ashish Kumar, Branch Manager of Kotak Mahindra Bank and others, to the .....

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e said amount, the demand drafts of other banks, apart from Kotak Mahindra Bank Limited, were also recovered. The prosecution suspected that there could be other dubious transactions made by the appellant in other banks and that Ashish Kumar, Bank Manager and others were acting on the instructions of the appellant for executing the crime. 5. The Sessions Court rejected the argument of the appellant that the investigation of the offence registered against the appellant and others under Section 3/ .....

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ch of Delhi Police, bearing FIR No.205/2016, had not commenced will also be of no avail to the appellant. The Sessions Court also found that as per Section 19 of the Act of 2002, the only condition to be satisfied for arrest of a person is the reasonable belief of the authority gathered on the basis of material in its possession. Further, in the present case, the accused was arrested by the competent authority on the basis of material in his possession giving rise to a reasonable belief about th .....

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and ECIR No.18/16 was opened for investigation. Transaction statements of accounts in Kotak Mahindra Bank in FIR No.205/16 in respect of companies i.e. Delhi Training Company, Kwality Tading Company, Mahalaxmi Industries, R.K. International, Sapna Trading Company, Shree Ganesh Enterprises, Swastik Trading Company arid Virgo International were sought and scrutinized, Huge cash deposits in the said accounts were identified during November, 2016, post demonetization announcement it was found that d .....

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The commission of Ashish Kumar was decided @ 35%, who in turn contacted one Yogesh Mittal and Rajesh Kumar Goel, accused in FIR No.205/16 to carry out the criminal design of getting the demonetized cash converted into monetized 7 valuable form. Demonetized currency was deposited in different accounts of companies pertaining to Raj Kumar Goel besides others through Raj Kumar Goel with the help of Ashish Kumar in different bank accounts of Kotak Mahindra Bank and DDs were issued in fictitious nam .....

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hat the old demonetized currency pertains to accused Rohit Tandon and the conspiracy was executed on his instructions. 23. Lastly, it was submitted by learned senior counsel for accused that accused fully cooperated with the investigating agency and there was no need to arrest him in this case. He further submitted that the actions of Accused persons as mentioned in the FIR attract implications and as such the correct authority to investigate into the same is the Income Tax Department and not th .....

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concerned. 24. As per section 45 of PMLA, while considering grant of bail to accused, the court has to satisfy that:i. There are reasonable grounds for believing that accused is not guilty of such offence and that ii. He is not likely to commit any offence, while on bail. 25. In the present case, accused has failed to satisfy this court that he is not guilty of alleged offence punishable under section 3 of PMLA. He has not been able to discharge the burden as contemplated under section 24 of the .....

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eds to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. (emphasis supplied) 6. Having formed that opinion and noticing that the investigation was at the initial and crucial stage and that the source of funds of proceeds of crime was yet to be ascertained till then and that the recovery of balance proceeds of crime was in the process, the question of enlarging the appellan .....

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d by the appellant and after adverting to the relevant materials, rejected the application for grant of bail preferred by the appellant. The High Court found that the Act of 2002 does not prescribe that the Enforcement Directorate is debarred from conducting investigation in relation to the offences under Sections 3 & 4 of the Act of 2002 unless the Crime Branch concludes its investigation in relation to FIR No.205/2016 or was to file chargesheet for commission of scheduled offence. Further, .....

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/2016 and the case is committed to the concerned Court. The High Court held that Section 44 of the Act of 2002 does not envisage a joint investigation but is a provision stipulating that the trial of offence under Section 3/4 of the Act of 2002 and any scheduled offence connected to the offence under that section may be tried only by the Special Court constituted for the area in which the offence has been committed. While considering the merits of the allegations against the appellant, in partic .....

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ed bank accounts in the name of Group of Companies in Kotak Mahindra Bank. In ECIR No.18, transactions statements of accounts were collected pertaining to these Group of Companies from Kotak Mahindra Bank and it emerged that from 15.11.2016 to 19.11.2016, there was huge cash deposit to the tune of 31.75 crores by Raj Kumar Goel and his associates. It was also found that the Demand Drafts amounting to 38 crores were issued in fictitious names during that period. It cannot be said at this stage th .....

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ction 4 of PMLA. Raj Kumar Goel and Ashish Kumar continue to be in custody in the said proceedings. 16. On perusal of the complaint lodged under Section 45 PMLA, it reveals that serious and grave allegations have been leveled against the petitioner and others. The allegations are categorical and specific; definite role has been assigned to each accused. It is alleged that during the period from 15.11.2016 to 19.11.2016, huge cash to the tune of 31.75 crores was deposited in eight bank accounts i .....

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l for the petitioner was asked as to, to whom the money deposited in the various accounts belonged. Learned Senior Counsel for the petitioner was fair enough to admit that the whole money belonged to the petitioner. When enquired as to from which source , huge cash was procured, there was no clear response to it. Again, learned Senior Counsel for the petitioner was asked as to how the cash belonging to the petitioner happened to be deposited in various accounts of the Group of Companies which we .....

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urrency to the tune of 31.75 crores in eight accounts of the different Group of Companies in Kotak Mahindra Bank during the short period from 15.11.2016 to 19.11.2016. There was no explanation as to why the Demand Drafts for the said amount were got issued in the name of sham people whose identity was not known. The purpose of all this exercise seemingly was to deposit the cash (old currency) first, get the Demand Drafts issued in fictitious names and obtain monetized currency by cancelling them .....

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r attempt / strategy by the petitioner and others to convert the old currency into new one to frustrate the Demonetization Policy primarily meant to unearth black money. 18. Allegations against the petitioner are not without substance. The prosecution has recorded statements of the petitioner on various dates and that of Dinesh Bhola, Ashish Kumar (Branch Manager, Kotak Mahindra Bank), Raj Kumar Goel, Kamal Jain (petitioner s Chartered Accountant), Vimal Negi, Jivan Singh and Varun Tandon under .....

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he appellant of being involved in other similar crime registered as FIR No.197/2016, for offence under Section 420, 409, 188, 120B of IPC dated 14th December, 2016 by Crime Branch and ECIR No.14/DZ/II/2016 registered on 16th December, 2016 by Enforcement Directorate for offences under Sections 3/4 of the Act of 2002. Further, during a raid conducted jointly by the Crime Branch and Income Tax Department on 10th December, 2016 at around 10.00 P.M. at the office premises of the appellant, currency .....

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me cannot be ruled out. Hence, it noted that the question of granting bail did not arise, taking into consideration the serious allegations against the appellant and other facts including severity of the punishment prescribed by law. Accordingly, the bail application of the appellant came to be rejected. As a consequence, the pending application which was considered along with the bail application was also disposed of by the impugned judgment and order dated 5th May, 2017 passed by the High Cour .....

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s filed supplementary complaint CC No.700/2017 in relation to ECIR 18/2016, which refers to further material gathered during the investigation, indicating the complicity of the concerned accused in the crime for offence punishable under Section 3 of the Act of 2002. A comprehensive supplementary complaint has been filed before the District and Sessions Judge, Saket, New Delhi (Designated Court under the Prevention of MoneyLaundering Act, 2002) on 2nd August, 2017. 11. Before this supplementary c .....

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injuries suffered by her on 20th June, 2017. The said interim release application was allowed on 10th August, 2017. Notably, the appellant was advised to withdraw the regular (second) Bail Application No.1361/2017. The learned Single Judge of the High Court by order dated 10th August, 2017 acceded to the prayer so made by the appellant. The order passed by the learned Single Judge of the High Court reads thus: BAIL APPLN. 1361/2017 The petitioner has prayed for bail in connection with ECIR/18/D .....

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ail application. Accordingly the regular bail application is dismissed as withdrawn. Crl.M.A.No.1293/2017 (application for interim bail) It has been submitted on behalf of the petitioner that he is the only son of his mother who has suffered a fall and has got a fracture in her neck. The sister of the petitioner is stationed abroad. The petitioner has a son who is of young age. The petitioner has also drawn the attention of this Court to the medical report which indicates that a plaster has been .....

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he jail even for a short period. No definite reasons, however, have been assigned by Mr.Mahajan, for such a presumption that the petitioner would tamper with the evidence specially when charge sheet in the main case has already been submitted. Mr.Rohtagi, learned senior counsel has drawn the attention of this Court to the fact that whenever the petitioner was summoned to answer to the Queries, he had visited the office of the ED and in the past, had never tried to evade the process of investigat .....

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the satisfaction of special court. However it is made clear that the petitioner shall not tamper with the evidence or commit any act which would be prejudicial to the prosecution side. Should anything of that kind be reported, this Court would consider the desirability of withdrawing/cancelling the interim bail. The petitioner shall not, unnecessary, seek extension of the interim bail granted to him. It is also specified that the petitioner shall not leave the country under any circumstances wha .....

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r advised to file the present appeals to assail the judgment and order dated 5th May, 2017 passed by the High Court of Delhi at New Delhi in Bail Application No.119 of 2017 and Criminal M.B. No.121 of 2017. The special leave petitions were filed on 18th August, 2017. During the pendency of these special leave petitions, the appellant was advised to also file a writ petition under Article 32 of the Constitution of India to challenge the validity of the provisions of the Act of 2002. The same was .....

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undering Act, 2002 (Act 15 of 2003) as unreasonable, arbitrary and unconstitutional being violative of the fundamental rights of the Petitioner guaranteed and protected under Articles 14 and 21 of the Constitution of India; (ii) In the alternative to prayer (i) above, issue a writ of mandamus or any other appropriate writ, order or direction reading down the scope and ambit of Section 45(1) of the Prevention of Money Laundering Act, 2002 (Act 15 of 2003), so that the rigors in grant of bail are .....

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ssue a writ of mandamus or any other appropriate writ, order or direction declaring the continued incarceration of the Petitioner since 28.12.2016 in ECIR/18/DZII/ 2016/AD dated 26.12.2016 under Section 3/4 of the Prevention of Money Laundering Act, 2002 is illegal, unconstitutional and in violation of the fundamental right of the Petitioner guaranteed and protected under Article 21 of the Constitution of India; (iv) Issue a writ of mandamus or any other appropriate writ, order or direction in t .....

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judgment dated 27.4.2016 (reported in 2016 SCC Online Delhi 2493) and by the Hon ble Gujarat High Court in Rakesh Manekchand Kothari vs. Union of India [Special Criminal Application (Habeas Corpus) No. 4247/2015] decided on 03.08.2015 holding that the offences under Section 3 of the Prevention of Money Laudnering Act, 2002 punishable under Section 4 thereof is a noncognizable offence is good law and the contrary view taken by the Hon ble Bombay High Court in its judgment dated 14.12.2016 in Chha .....

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aforementioned writ petition was listed together with the appeals on 30th October, 2017. During oral arguments, however, the counsel appearing for the appellant, in all fairness, stated that the grounds urged in the said writ petition need not be considered at this stage and that the appeals preferred against the impugned judgment and order dated 5th May, 2017 be examined on the basis of the prevailing statutory provisions, including the rigors of Section 45 of the Act of 2002. In other words, t .....

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wing circumstances: i) Petitioner never tried to evade the investigation; ii) The period of incarceration (7 ½ months); iii) Submission of chargesheet in the main case on 24/6/17; iv) Illness of the mother of the Petitioner; v) No definite reasons assigned by the Counsel for the Respondent to substantiate allegation that Petitioner would tamper with evidence especially when chargesheet in the main case has been submitted. 16. The argument though attractive at the first blush deserves to b .....

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ndubitably, the appellant having withdrawn the regular (second) bail application, the consideration of prayer for grant of interim release could not have been taken forward. Besides, in the backdrop of the opinion recorded by the Coordinate Bench of the High Court (in its decision dated 5th May, 2017) whilst considering the application for grant of regular bail, which was after filing of the initial complaint CC No.700/2017 (on 23rd February, 2017), was binding until reversed or a different view .....

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finite reason has been assigned by the respondents for substantiating the allegation that the appellant would tamper with the evidence, may become relevant only if the threshold stipulation envisaged under Section 45 of the Act of 2002 was to be fulfilled. The said provision reads thus: 45. Offences to be cognizable and nonbailable.-( 1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence punishable for a term of imprisonment of .....

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or is a woman or is sick or infirm, may be released on bail, if the Special Court so directs: Provided further that the Special Court shall not take cognizance of any offence punishable under section 4 except upon a complaint in writing made by- (i) the Director; or (ii) any officer of the Central Government or a State Government authorised in writing in this behalf by the Central Government by a general or a special order made in this behalf by that Government. (1A) Notwithstanding anything con .....

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force on granting of bail. (emphasis supplied) The sweep of Section 45 of the Act of 2002 is no more res intergra. In a recent decision of this Court in the case of Gautam Kundu Vs. Directorate of Enforcement (Prevention of MoneyLaundering Act), Government of India, (2015) 16 SCC 1 this Court has had an occasion to examine it in paragraphs 2830. It will be useful to advert to paragraphs 28 to 30 of this decision which read thus: 28. Before dealing with the application for bail on merit, it is t .....

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dure, 1973 clearly lays down that the provisions of the Code of Criminal Procedure will not affect any special statute or any local law. In other words, the provisions of any special statute will prevail over the general provisions of the Code of Criminal Procedure in case of any conflict. 29 . Section 45 of the PMLA starts with a non obstante clause which indicates that the provisions laid down in Section 45 of the PMLA will have overriding effect on the general provisions of the Code of Crimin .....

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at he is not likely to commit any offence while on bail. 30 . The conditions specified under Section 45 of the PMLA are mandatory and needs to be complied with which is further strengthened by the provisions of Section 65 and also Section 71 of the PMLA. Section 65 requires that the provisions of Cr.P.C. shall apply in sofaras they are not inconsistent with the provisions of this Act and Section 71 provides that the provisions of the PMLA shall have overriding effect notwithstanding anything inc .....

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shall presume that proceeds of crime are involved in money laundering and the burden to prove that the proceeds of crime are not involved, lies on the appellant. (emphasis supplied) 17. In paragraph 34, this Court reiterated as follows: 34. xxx xxx xxx We have noted that Section 45 of the PMLA will have overriding effect on the general provisions of the Code of Criminal Procedure in case of conflict between them. As mentioned earlier, Section 45 of the PMLA imposes two conditions for grant of ba .....

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f Criminal Procedure for grant of bail to any person accused of committing offence punishable under Section 4 of the PMLA, even when the application for bail is considered under Section 439 of the Code of Criminal Procedure. The decisions of this Court in the case of Subrata Chattoraj Vs. Union of India, (2014) 8 SCC 768 Y.S. Jagan Mohan Reddy Vs. CBI (2013) 7 SCC 439, and Union of India Vs. Hassan Ali Khan (2011) 10 SCC 235 have been noticed in the aforesaid decision. 18. The consistent view ta .....

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es were not the proceeds of crime and were not, therefore, tainted shifts on the accused persons under Section 24 of the Act of 2002. 19. It is not necessary to multiply the authorities on the sweep of Section 45 of the Act of 2002 which, as aforementioned, is no more res integra. The decision in the case of Ranjitsing Brahmajeetsing Sharma Vs. State of Maharashtra and Anr., (2005) 5 SCC 294 and State of Maharashtra Vs. Vishwanath Maranna Shetty, (2012) 10 SCC 561 dealt with an analogous provisi .....

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g bail much before commencement of trial. 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. Further, the Court is required to record a finding as to the possibility of the accused committing a crime which is an offence under the Act after grant of bail. In Ranjitsing Brahmajeetsing Sharma (supra), in paragraphs 44 to 46 of the said decision, this Court observed thus: 44. The wording of Section 21(4), in o .....

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erefore, must be construed reasonably. It must be so construed that the Court is able to maintain a delicate balance between a judgment of acquittal and conviction and an order granting bail much before commencement of trial. Similarly, the Court will be required to record a finding as to the possibility of his committing a crime after grant of bail. However, such an offence in futuro must be an offence under the Act and not any other offence. Since it is difficult to predict the future conduct .....

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en 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 Subsection (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 .....

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is on the facts of that case. Even in the said decision, the Court has noted that the grant or denial of bail is regulated to a large extent by the facts and circumstances of each case. In the case of Sanjay Chandra Vs. Central Bureau of Investigation, (2012) 1 SCC 40 the Court was not called upon to consider the efficacy of Section 45 of the Act of 2002 which is a special enactment. 21. Keeping in mind the dictum in the aforesaid decisions, we find no difficulty in upholding the opinion recorde .....

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ew. 22. Realizing this position, the learned counsel appearing for the appellant would contend that even if the allegations against the appellant are taken at its face value, the incriminating material recovered from the appellant or referred to in the complaint, by no stretch of imagination, would take the colour of proceeds of crime. In fact, there is no allegation in the chargesheet filed in the scheduled offence case or in the prosecution complaint that the unaccounted cash deposited by the .....

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s concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money laundering. 4. Punishment for money laundering. Whoever commits the offence of moneylaundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine. Provided that where the proceeds of crime involved in moneylaundering relates to any offence specified .....

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by any person as a result of criminal activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country, then the property equivalent in value held within the country; It will be useful to advert to the meaning of expression property as predicated in Section 2(1)(v). The same reads thus: 2(1)(v) property means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intang .....

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the Schedule; Indisputably, the predicate offence is included in Part A in paragraph 1 of the Schedule in the Act of 2002, in particular Sections 420, 467, 471 and 120B of IPC. Indeed, the expression criminal activity has not been defined. By its very nature the alleged activities of the accused referred to in the predicate offence are criminal activities. The possession of demonetized currency in one sense, ostensibly, may appear to be only a facet of unaccounted money in reference to the prov .....

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punishable under Section 4 of the Act, being a case of moneylaundering. The expression moneylaundering is defined thus: 2(1)(p) moneylaundering has the meaning assigned to it in section 3; 24. The appellant then relies upon the decision in the case of Gorav Kathuria Vs. Union of India, (2016 SCC Online P & H 3428 of the Punjab and Haryana High Court which has taken the view that Section 45(1) of the Act of 2002 requires to be read down to apply only to those scheduled offences which were inc .....

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has been deferred on the request of the appellant. In other words, the appellant should be in a position to persuade the Court that the allegations in the complaint and the materials on record taken at its face value do not constitute the offence under Section 3 read with the schedule of the Act of 2002 as in force. 25. It has been brought to our notice that the decision in Gorav Kathuria (supra) was challenged before this Court by way of Criminal Appeal No.737 of 2016, which has already been d .....

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some time and are of the opinion that the impugned judgment of the High Court is correct. This appeal is, accordingly, dismissed. At the same time the respondents have drawn our attention to a chart contained in their written submissions pointing out that other High Courts have disagreed with the principle expounded in Gorav Kathuria s case. The said chart reads thus: (i) Crl. Misc. Application (for Regular Bail) No.7970/17 Jignesh Kishorebhai Bajiawala vs. State of Gujarat & Ors. Manu/GJ/10 .....

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6 Chhagan Chandrakant Bhujbal vs Union of India & Ors. 2016 SCC Online Bom 9983 High Court of Bombay 26. For the time being, it is not necessary for us to examine the issues arising from the decision of the Punjab and Haryana High Court or the rejection of criminal appeal by this Court against that decision. The constitutional validity of Section 45 of the Act of 2002 will have to be examined by this Court in the writ petition on its own merits. The summary dismissal of criminal appeal will .....

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d upon by the prosecution and also noted the inexplicable silence or reluctance of the appellant in disclosing the source from where such huge value of demonetized currency and also new currency has been acquired by him. The prosecution is relying on statements of 26 witnesses/accused already recorded, 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 involv .....

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. Since the threshold stipulation predicated in Section 45 has not been overcome, the question of considering the efficacy of other points urged by the appellant to persuade the Court to favour the appellant with the relief of regular bail will be of no avail. In other words, the fact that the investigation in the predicate offence instituted in terms of FIR No.205/2016 or that the investigation qua the appellant in the complaint CC No.700/2017 is completed; and that the proceeds of crime is alr .....

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netization Notification dated 8th November, 2016 imposes no limit in KYC compliant accounts on the quantum of deposit and no restrictions on noncash transactions. The relevant portion of the said notification reads thus: (iii) there shall not be any limit on the quantity or value of specified bank notes to be credited to the account maintained with the bank by a person, where the specified bank notes are tendered; however, where compliance with extant Know Your Customer (KYC) norms is not comple .....

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ing the source from where such huge amount has been acquired, possessed or used by him. The volume of demonetized currency recovered from the office and residential premises of the appellant, including the bank drafts in favour of fictitious persons and also the new currency notes for huge amount, leave no manner of doubt that it was the outcome of some process or activity connected with the proceeds of crime projecting the property as untainted property. No explanation has been offered by the a .....

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