TMI Blog2021 (6) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... ey Laundering Act. The reason can be seen in the present day situation. At one end the economy of the country is growing and at another end, Offences against the economy, more particularly, Banking frauds are on the rise running to several Crores. The economic offences are more capable of destablishing the very sustenance of penniless Indian majority than affecting the society at large. When we approach this provision from this angle, we see more reason than one expressed in the words used. But, this is also greatly commented as draconian in nature. But as long as it remains in the Statute Book, it has to be applied with its full vigour and force - unless the petitioners satisfy the above important condition under Section 45 (1) of the Prevention of Money Laundering Act, they cannot be granted bail even though they are in custody for more than 70 days. Entire case depends upon the documentary evidence - HELD THAT:- The question of tampering the evidence will not arise. So, according to the learned Senior counsel, continuation of detention will not serve any purpose. They are also ready to surrender their Passports; ready to abide any condition that may be imposed by this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the group in 3 of their branches. It has also noticed cash deposits of ₹ 17.10 Crores during the December 2016 (demonetization period). iii) Based upon the complaint, a case in Crime No.17 of 2018 for the punishable offences under Sections 120-B r/w 406, 420, 468 and 471 of IPC was registered. Based upon the First Information Report investigation was undertaken. Simultaneously, proceedings was also initiated and summons were issued to the petitioners. Enquiry was conducted from 16.08.2019 to 04.03.2021. So, out of these offences, the offences under Sections 120-B r/w 406, 420 and 471 of IPC are scheduled offences in terms of Section 2 (1) (y) of Prevention of Money Laundering Act, 2002. After forwarding the details of the First Information Report, the proceedings are undertaken mainly with reference to the letter No. DPBSB2018/RC.17/E/2018-CBI/BS FC/BLR/6073, dated 20.11.2018, which was registered against the petitioners and 35 others. The CBI has not filed a Charge Sheet so far. 3. During the course of enquiry, a specific overt acts have been found and in the complaint the following allegations are made. 4. The petitioner in Crl.OP (MD) No. 6883 of 2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over, totally, ₹ 43.50 Crores were also paid, which was received by the Corporation Bank. It is long term loan commenced from 2017. The value of the mortgaged properties is more than the loan availed to them. They are doing business in various fields such as, agriculture, sugar, timbers and other investments. So, fund transfer cannot be defined under Money Laundering Act. Because of the huge loss in the business, they were not in a position to repay the amount in time. Because of the demonetization process, default occurred. Without any proper basis, arrest has been made. The petitioners are ready to fully co-operate for the investigation. The petitioners have to repay ₹ 360 Crores. Whereas, the property, which was secured is worth about ₹ 800 Crores and confiscation proceedings have been initiated. Moreover, all the documentary evidence has been recovered. The properties which belong to the petitioner and the other Companies are situated in Megamalai, Theni District, to an extent of 2200 acres along with the number of trees worth about more than ₹ 250 Crores. Because of the order of stay passed by the Hon'ble Division Bench of this Court, the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) 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 more than three years under Part A of the Schedule shall be released on bail or on his own bond unless-] (ii) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (iii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail: Provided that a person who is under the age of sixteen years or is a woman or is sick or infirm, may be released on bail, if the special court so directs: 12. This section was challenged before the Hon'ble Supreme Court in the judgment reported in Nikesh Tarachand Shah Vs. Union of India AIR 2017 SC 5500 and the same was declared as unconstitution on various grounds. Later, the Central Government has amended this provision and after amendment, the Section reads as under:- Offences to be cognizable and non-bailable. i) 'Notwithstanding a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in the Statute Book, it has to be applied with its full vigour and force. 18. So, I am of the considered view that unless the petitioners satisfy the above important condition under Section 45 (1) of the Prevention of Money Laundering Act, they cannot be granted bail even though they are in custody for more than 70 days. 19. In the light of the above discussion, we will discuss the points raised. Argument advanced by the learned Senior Counsel for the petitioners mainly revolves around the value of the secured assets of their property. According to them, value is more than what is due to the Bank; the Bank is at liberty to assess the value of the entire property and realise the amount. So, according to them, the loans obtained from the Bank have been fully secured and so, the Bank is not at loss. Further submitted that the petitioners being respectable persons from reputable family, are suffering humiliation because of their arrest and detention. 20. Next ground urged is that the entire case depends upon the documentary evidence, So, the question of tampering the evidence will not arise. So, according to the learned Senior counsel, continuation of detention wil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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