Kerala HC denies pre-arrest bail to cashew businessman in money laundering case

Kochi, Nov 26 The Kerala High Court has denied anticipatory bail to a cashew businessman accused in a money laundering case, saying that the amount involved was huge and his custodial interrogation "appears to be necessary".

Justice Kauser Edappagath said that the businessman was accused of cheating multiple people in the guise of supplying cashews as well as by offering job opportunities and receiving a total sum of Rs 25.52 crore.

The court said that according to the Enforcement Directorate (ED), these funds were "proceeds of crime" and were utilised by the businessman - Aneesh Babu - for money laundering.

"It is revealed from the investigation that Rs 2.03 crores were credited to the applicant’s (Babu) bank account by the complainants, which were not transferred overseas for import as claimed by the applicant.

"Therefore, a prima facie case of money laundering has been made out," the court said.

It further said that on a careful analysis of the materials placed on record and submissions on record, it was not possible to say at this stage that there are reasonable grounds for believing that the applicant was not guilty of the offences alleged.

"The investigation is going on and the same is at a crucial stage. Undoubtedly, the investigating agency may require further time to collect all the materials, particularly the alleged nexus of the applicant with the crimes.

"The amount involved is huge. The custodial interrogation of the applicant appears to be necessary," the court said.

It also accepted the ED's argument that if pre-arrest bail was granted to Babu, there was every possibility of him influencing the witnesses and interfering with the investigation.

"Therefore, I see no reason to exercise the jurisdiction vested with this court under section 482 (anticipatory bail) of the Bharatiya Nagarik Suraksha Sanhita (BNSS). Accordingly, the bail application is dismissed," Justice Edappagath said.

In his plea for anticipatory bail, Babu had claimed that he had been falsely implicated in the case as a counterblast to a crime registered against an ED officer by the Vigilance and Anti-Corruption Bureau (VACB), Ernakulam, on his complaint.

The VACB had in May booked an Assistant Director rank officer of the ED working at its Kochi office following Babu's complaint alleging that some private persons approached him and “demanded” Rs 2 crore for “settling” a March 2021 money laundering case being investigated by the ED against him.

Aneesh Babu v. Assistant Director Directorate Of Enforcement, (Kerala)