Bail Plea of Applicant for Money Laundering Rejected as Trial Progresses Quickly

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  • Last Updated on 17 April, 2023

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Bail plea; Money Laundering

Case Details: Abdul Razak Peediyakkal v. Union of India - [2023] 149 taxmann.com 57 (HC-Allahabad)

Judiciary and Counsel Details

  • Rajesh Singh Chauhan, J.
  • Pranav Agarwal for the Applicant.
  • Kuldeep Srivastava & Shiv P. Shukla for the Respondent.

Facts of the Case

In the instant case, during the investigation under the Prevention of Money Laundering Act, 20002 (PMLA), the Investigating Agency discovered that foreign funds had been illegally remitted to India through hawala/underground channels and remitted to accounts of members/activists/office bearers of Popular Front of India (PFI) and other related organizations.

Pursuant to the investigation, the role of the applicant, who was a PFI member had emerged for doing aforesaid illegal activities. Subsequently, the applicant was issued summons to cooperate in the investigations.

As the applicant was based in Abu Dhabi it was observed that he had not properly cooperated in the investigation and was taken into judicial custody. The applicant then filed a bail application.

It was noted that the bail application of the applicant did not qualify for twin conditions of section 45. At the current stage, it could not be observed that the applicant had not committed an offence for which a complaint had been filed against him.

Sec 45 of the PMLA, 2002 lays down two conditions that must be met for a person accused of an offence under the Act to be released on bail or on their own bond. The conditions are as follows:

(a) The Public Prosecutor must be given an opportunity to oppose the application for such release; and

(b) Where the Public Prosecutor opposes the application, the court must be satisfied that there are reasonable grounds for believing that the accused is not guilty of the offence and that he is not likely to commit any offence while on bail.

High Court Held

The High Court held that the trial in the instant case was progressing at a good pace and the same was likely to be concluded very soon. Further, the proceeds of the crime were also in crores. Therefore, the applicant’s bail application was to be rejected.

List of Cases Referred to

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