Court emphasizes the importance of Article 21 and speedy trial over statutory bail conditions under PMLA
In a significant ruling, the Punjab and Haryana High Court has granted regular bail to Varun Puri, a director of Universal Buildwell Private Limited (UBPL), accused in a money laundering case under the Prevention of Money Laundering Act, 2002 (PMLA). Justice Sumeet Goel, presiding over the case, underscored the constitutional mandate for a speedy trial under Article 21 of the Indian Constitution, which takes precedence over the stringent conditions imposed by Section 45 of the PMLA.
The court's decision comes after Varun Puri had been in judicial custody for over a year. The Enforcement Directorate (ED) alleged that Puri, along with his family members, diverted substantial amounts collected from homebuyers and financial institutions for personal use, rather than for the intended real estate projects. The funds were reportedly channeled through a network of companies controlled by Puri and his family, constituting proceeds of crime under the PMLA.
During the proceedings, the court noted the prolonged pre-trial detention of Puri without significant progress in the trial, which remains at the cognizance stage with 49 prosecution witnesses and over 10,000 pages of documents yet to be examined. Highlighting the right to a speedy trial as an integral part of personal liberty, the court found that the delay in trial proceedings violated Article 21.
The court referred to precedents set by the Supreme Court, which emphasize that prolonged incarceration without trial infringes upon the fundamental rights of the accused. The judgment pointed out that under Article 21, the responsibility lies with the state to ensure expeditious trials, and failure to do so warrants the relaxation of statutory bail conditions.
Justice Goel directed Puri's release on bail, subject to several conditions, including the surrender of his passport, regular court appearances, and a financial surety. The court clarified that this decision should not be seen as an expression of opinion on the merits of the case but rather as a measure to uphold constitutional rights.
Bottom Line :
Regular bail under PMLA can be granted when prolonged incarceration violates Article 21 of the Constitution, despite stringent statutory provisions.
Statutory provision(s):
- Prevention of Money Laundering Act, 2002, Section 45
- Constitution of India, Article 21
- Criminal Procedure Code, 1973, Section 436A
- Bharatiya Nagarik Suraksha Sanhita, 2023, Section 479
Varun Puri v. Directorate of Enforcement, (Punjab And Haryana) : Law Finder Doc id # 2961815
