Bail granted due to lack of foundational scheduled offence, prolonged incarceration, and parity with co-accused.
In a significant ruling, the Delhi High Court has granted bail to Anshad Badruddin and Abdul Khader Puttur, accused under the Prevention of Money Laundering Act, 2002 (PMLA), citing the absence of a foundational scheduled offence and prolonged incarceration. Justice Purushaindra Kumar Kaurav, presiding over the case, emphasized the principle of "bail as the rule and jail as the exception," particularly given the improbability of an early trial conclusion.
The case against the applicants, who were accused of money laundering activities, hinges on allegations of their involvement with an unlawful association purportedly raising funds for terrorist activities. However, the court noted that neither applicant was mentioned in the initial prosecution complaint and were implicated only in the supplementary complaint filed in 2024.
The judgment highlighted that the prosecution failed to establish the existence of proceeds of crime as defined under Section 2(1)(u) of the PMLA, which necessitates that such proceeds are derived from a scheduled offence. The court observed that the payments received by the applicants were for services rendered as physical education trainers, and the bulk of these transactions occurred before the association was declared unlawful.
Moreover, the court acknowledged that the applicants had been in judicial custody for over two years, with no likelihood of the trial concluding in the near future, thereby violating their fundamental rights under Article 21 of the Constitution. The principle of parity was also applied, as several co-accused with similar allegations had already been granted bail.
The court imposed conditions for bail, including the furnishing of a personal bond, surrendering of passports, and prohibitions on contacting prosecution witnesses. The decision underscores the judiciary's role in safeguarding individual liberties amidst stringent statutory provisions.
Bottom line:-
Bail granted under the Prevention of Money Laundering Act (PMLA), 2002, on grounds of parity, absence of foundational scheduled offence, prolonged incarceration, and improbability of early trial conclusion.
Statutory provision(s): Prevention of Money Laundering Act, 2002 - Sections 3, 4, 45; Constitution of India - Article 21; Indian Evidence Act, 1872 - Section 25; Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 483.
Anshad Badruddin v. Directorate of Enforcement, (Delhi) : Law Finder Doc id # 2936460
