Kerala High Court Denies Pre-Arrest Bail in High-Profile Money Laundering Case

Accused Cashew Dealer's Bail Application Dismissed Due to Non-Cooperation and Gravity of Offences Under PMLA

In a significant ruling, the Kerala High Court, presided by Dr. Kauser Edappagath, J., dismissed the pre-arrest bail application of Aneesh Babu, a cashew dealer accused in a high-profile money laundering case under the Prevention of Money Laundering Act, 2002 (PMLA). The judgment underscores the stringent application of the twin conditions specified under Section 45(1) of the PMLA, emphasizing the necessity for custodial interrogation due to the magnitude of the alleged offences and the applicant's non-cooperation with the investigation.

The petitioner, Aneesh Babu, is alleged to have committed offences involving proceeds of crime amounting to over Rs. 25.52 crores. The allegations span multiple cases registered at Kottarakkara and Kollam East Police Stations, where the accused purportedly induced complainants to invest in cashew imports from Tanzania, which never materialized, and forged documents to deceive them. Furthermore, charges involve non-payment for imported cashews and fraudulent job promises in Tanzania, with all five predicate offences constituting scheduled offences under the PMLA.

In defense, Aneesh Babu's counsel argued his innocence, asserting that the charges were a counterblast to a complaint filed against an Enforcement Directorate officer. However, the court found substantial material evidence indicating the applicant's involvement in money laundering, reinforcing the mandatory compliance with Section 45(1) of the PMLA. The court highlighted the need for custodial interrogation, noting the applicant's failure to cooperate and the potential for witness tampering if bail were granted.

This judgment aligns with precedent set by the Supreme Court in Vijay Madanlal Choudhary v. Union of India and Directorate of Enforcement v. M. Gopal Reddy, reiterating the application of twin conditions to pre-arrest bail under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023.

The court's decision emphasizes the overriding effect of PMLA provisions, reinforcing the severe constraints on granting bail for money-laundering offences, reflecting on the heavy stakes involved in economic crimes and the necessity of thorough investigation to ensure justice.

Bottom Line:

Pre-arrest bail in offences under Prevention of Money Laundering Act, 2002 - Applicability of twin conditions specified under Section 45(1) of PMLA - Court held custodial interrogation of the applicant necessary due to non-cooperation with investigation and magnitude of the offence involving proceeds of crime.

Statutory provision(s): Prevention of Money Laundering Act, 2002 Sections 3, 4, 45(1), Bharatiya Nagarik Suraksha Sanhita, 2023 Section 482

Aneesh Babu v. Assistant Director Directorate Of Enforcement, (Kerala) : Law Finder Doc Id # 2812887