Bail Granted Due to Lack of Scheduled Offence, Prolonged Detention, and No Immediate Trial Conclusion
In a significant ruling, the Allahabad High Court has granted bail to Sanjay Kumar @ Sanjay Dhiman in a high-profile money laundering case. The case, involving allegations of illegal mining and money laundering under the Prevention of Money Laundering Act, 2002 (PMLA), was being heard by Justice Vikram D. Chauhan. The decision came in the wake of the absence of a scheduled offence, prolonged incarceration of the accused, and the unlikelihood of the trial concluding in the near future.
The bail application, registered as Criminal Misc. Bail Application No. 38900 of 2025, was filed by Sanjay Kumar, who is accused of being involved in illegal mining operations and subsequent money laundering activities. The Directorate of Enforcement, the respondent in this case, initiated proceedings based on several FIRs registered in Himachal Pradesh, which were foundational to the PMLA proceedings.
The court noted that all six FIRs in Himachal Pradesh, which alleged illegal mining activities, had resulted in closure reports accepted by the concerned courts. Thus, no scheduled offence could be established, a crucial element in prosecuting under the PMLA. Furthermore, Sanjay Kumar had been in judicial custody for 18 months, with co-accused already granted bail, and no evidence suggesting tampering or flight risk.
The judgment emphasized that bail is the rule and jail the exception, particularly when prolonged detention without trial infringes upon Article 21 of the Indian Constitution, which guarantees the right to life and personal liberty. The court also highlighted the lack of material evidence against Sanjay Kumar in respect of scheduled offences in Uttar Pradesh.
In granting bail, the court imposed several conditions to ensure the integrity of the trial process, including prohibitions on tampering with evidence, intimidating witnesses, and leaving the country without permission.
The decision underscores the judiciary's commitment to uphold constitutional rights while balancing the need for justice in complex economic offences. The case will continue to be monitored as the trial progresses, with the court making it clear that the observations in the bail order should not influence the trial's outcome.
Bottom line:-
Bail application under Prevention of Money Laundering Act, 2002 (PMLA) - Applicant accused of involvement in illegal mining and money laundering - Bail granted considering the absence of a scheduled offence, prolonged incarceration, and no likelihood of trial conclusion in the near future.
Statutory provision(s): Sections 3, 4, 2(u), 2(v), and 2(y) of the Prevention of Money Laundering Act, 2002; Article 21 of the Constitution of India.
