Bail can be granted under the Prevention of Money Laundering Act if foundational facts are not established, emphasizing the need for strong evidence before presumption of guilt arises.

JUDGMENT :

S. VISHWAJITH SHETTY, J.

1. Accused in ECIR/BGO/05/2021 registered for the offence punishable under Section 4 of the Prevention of Money Laundering Act, 2002 (for short 'the Act') pending before the Court of Prl. City Civil & Sessions Judge, Bengaluru, is before this Court in this petition filed under Section 4 39 of Cr.PC seeking regular bail.

2. Heard the learned Counsel for the parties.

3. Petitioner was the elected President of Shivamogga District Co-operative Central Bank, Shivamogga (for short 'SDCC Bank') during the years 1997-1998, 1999-2010, 2011-2014 and 2015-2020. FIR in Crime No.325/2014 was registered by Doddapete Police Station, Shivamogga, against B.Shobha - Branch Manager of SDCC Bank and others for the offences punishable under Sections 406 , 408, 409, 420, 34 of IPC, and in the said case, petitioner was arrayed as accused no.15 in the FIR. Subsequently, the case was transferred to CID for further investigation. After completing investigation in the said case, charge sheet was filed for the offences punishable under Sections 409 , 420, 465, 471, 120B, 201 read with 37 of IPC. However, petitioner was dropped in the said charge sheet. Subsequently, FIR in Crime No.16/2021 was registered by Jayanagar Police Station, Shivamogga, against the petitioner for the offences punishable under Sections 120B, 168, 200, 403, 405, 409, 418, 419, 420, 424, 425, 427, 467, 468, 474 read with 34 of IPC and Section 109 of the Karnataka Co- operative Societies Act, 1959. After registration of FIR in Crime No.16/2021, additional charge sheet was filed in Crime No.325/2014 against the petitioner on 30.07.2021 for the offences punishable under Sections 409 , 202 read with 36 of IPC.

4. FIR in Crime No.4/2014 was registered against the petitioner for the offences punishable under Sections 13 (1)(e) & 13(2) of the Prevention of Corruption Act, 1988 (for short, 'P.C. Act') and after completing investigation in the said case, charge sheet has been already filed against the petitioner for the aforesaid offences. It is in this background, ECIR/BGO/05/2021 was registered against the petitioner by the respondent alleging that proceeds of crime in the aforesaid criminal cases was utilized directly or indirectly by the petitioner for the purpose of deriving/obtaining property. In the said proceedings, petitioner was arrested on 09.04.2025 and subsequently remanded to judicial custody. His bail application filed before the Special Court in ECIR/BGO/05/2021, was rejected on 20.05.2025. Therefore, petitioner is before this Court.

5. Learned Senior Counsel appearing for the petitioner submits that in Crime No.325/2014 which was registered for the schedule offences, after investigation, no charge sheet was filed initially against the petitioner. On the very same allegations, FIR in Crime No.16/2021 was registered by Jayanagar Police Station, Shivamogga, and the said FIR was quashed by this Court in W.P.No.8294/2021 on the ground that the allegations made in Crime No.325/2014 and Crime No.16/2021 and the period during which the alleged offences were committed were one and the same. Though additional charge sheet has been filed in Crime No.325/2014 against the petitioner, in the