TMI Blog2021 (10) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... anticipatory bail, to the petitioners would disable the respondent/ prosecution from further proceeding to trace the proceeds of crime and attaching it provisionally under Section 5(1) of PML Act, which is the basic objective of the said Act. In view of the serious allegations, thorough investigation and interrogation is warranted. It is also pertinent to state that in the event of grant of bail under Section 438 Cr.P.C, it may not be possible for the respondent/prosecution to trace the proceeds of the crime and take necessary action in terms of Section 5(1) of the PML Act. While granting bail, the Court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/State and other similar considerations - In the instant cases, grant of anticipatory bail at the stage of investigation may frustrate the investigating agency in interrogating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the basis for the said declaration. The action of declaring the account of the Company as fraud , is sub judice before this Court in W.P.No.18649 of 2020, wherein, this Court was pleased to restrain all the lenders of the Company from taking any coercive action against the petitioners. Registering the subject crime against the petitioners is nothing but abuse of process of law. In fact, the petitioners, who are the promoters of the Company, made many sacrifices to the Company, including not drawing remuneration since a long time, much before the Company s account was declared as NPA. Further, the petitioner in Criminal Petition No.5977 of 2021 is a senior citizen aged about 79 years and suffering from various ailments. He is bedridden and cannot walk since the last one and half year. Further, he underwent various surgeries. In Badresh Bipinbhai Seth Vs. State of Gujarat (2016) 1 SCC 152, the Hon ble Apex Court held that Section 438 of Cr.P.C. and Article 21 of Constitution of India goes hand-in-hand, and that by enacting the provision for grant of anticipatory bail, the legislature has upheld the fundamental right of the citizens. The petitioners are permanent residents of H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory bail and ultimately prayed to dismiss both the Criminal Petitions. 5. In view of the submissions made by both sides, the point that arises for determination in both these Criminal Petitions is: Whether the petitioners in both these Criminal Petitions are entitled for benefit of bail under Section 438 Cr.P.C? POINT : 6. The case of the prosecution, in brief, is that based on the complaint filed by Punjab National Bank, the Central Bureau of Investigation, Banking Securities and Fraud Cell, Bangalore, registered FIR No.15 of 2018 for the offences punishable under Sections 120B r/w 406, 420, 468 and 471 of IPC against M/s. VMC Systems Limited, Hyderabad, Smt.Vuppalapati Hima Bindu, Managing Director, Sri Vuppalapati Venkata Rama Rao, Director (petitioner in Crl.P.No.5977 of 2020), Bhagavatula Venkata Ramana, Promoter Executive Director of the Company (petitioner in Crl.P.No.5978 of 2020) and another, for bank loan fraud. As per the mandate given under the PML Act, the Directorate of Enforcement initiated money laundering investigation in the said bank loan fraud on 06.12.2018 under PML Act and registered subject crime. As per the complainant bank and the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment, got additional loan sanctioned from various banks. Further, he actively engaged in transfer of proceeds of crimes to overseas related entities and transferred 280 crores to M/s.Cemetric Inc., USA, and M/s.Prithvi INC.LLC, USA, related to his daughter/Vuppalapati Madhavi, under the guise of fake import of software/consultancy services. Thus, he, along with the Managing Director of the Company, are instrumental in inflating the books of accounts by reflecting the aforestated dues from BSNL. The petitioner in Criminal Petition No.5977 of 2021, in active connivance with Vuppalapati Satish Kumar and Mrs.Hima Bindu Vuppalapati, incorporated various entities in the name of Smt. Banda Shilpa, W/o.V.Satish Kumar, to park the proceeds of crime. The petitioner in Criminal Petition No.5978 of 2021, who is also a Director of the Company, engaged in incorporation of shell companies in the name of their employees and transferred ₹ 280 crores to M/s.Cemetric Inc., USA, and M/s.Prithvi Inc. LLC, USA, under the guise of import of software/consultancy services. In the course of investigation conducted by the prosecution, the following alleged fraud has come to light: M/s.VMCSL w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Chandrasekhar s case (supra) relied upon by the learned Special Public Prosecutor, the High Court of Delhi held that it, prima facie appears to us that under the Scheme of PMLA, the relief of statutory anticipatory bail is excluded. Further, in view of huge magnitude of conspiracy angle and possible involvement of the petitioners herein and pending their interrogation, granting any sort of relief, including anticipatory bail, to the petitioners would disable the respondent/ prosecution from further proceeding to trace the proceeds of crime and attaching it provisionally under Section 5(1) of PML Act, which is the basic objective of the said Act. In view of the serious allegations as indicated above, thorough investigation and interrogation is warranted. It is also pertinent to state that in the event of grant of bail under Section 438 Cr.P.C, it may not be possible for the respondent/prosecution to trace the proceeds of the crime and take necessary action in terms of Section 5(1) of the PML Act. Further, there are serious allegations of petitioners not cooperating with the Investigating Officer and responding to the notices issued by the Enforcement Directorate. Investigation i ..... 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