The existence of proceeds of crime is a prerequisite for prosecution under the PMLA, and the strict conditions for bail must be satisfied in cases involving money laundering.

JUDGMENT :

1. This is an application for bail by the applicant who is accused No.1 in ECIR/MBZO-I/57/2022 (hereafter ‘ECIR’ for short) for which Special Case No. 634 of 2023 is filed before the Special Court designated under the Prevention of Money-Laundering Act, 2002 (hereafter ‘PMLA’ for short) against the applicant and other accused for offence under Section 3 punishable under Section 4 of the PMLA.

The facts relevant to a decision of this application are thus:

2. On 20/06/2011, one Shri Vibhas Rajan Sathe purchased Gat No. 446 at Dapoli, Ratnagiri. Mr. Sathe made an application to the Sub-Divisional Officer on 21/07/2017 for conversion of the said land to non-agricultural (‘NA’ for short) use and for building permission. The NA permission and building permission was granted on 12/09/2017. Shri Sathe sold the said land to Shri Anil Parab on 19/06/2019 under a duly registered sale deed for the consideration paid by cheque/bank transfer. It is alleged that to conceal the identity of Shri Anil Parab, the sale deed was executed in 2019 though the transaction took place in 2017. All permissions were at the behest of Shri Anil Parab. Since 2017, Shri Sathe was only a front. It is alleged that the applicant was organising all this. Shri Anil Parab sold the said land to the applicant under a duly registered sale deed for consideration paid by cheque/bank transfer on 29/12/2020. This was done to avoid public attention as per the allegation. A notice under the Maharashtra Regional and Town Planning Act (MRTP Act) was issued on 22/06/2021 to the construction made on the land which was in the nature of twin bungalows converted into a resort. Suit No. 57 of 2021 was filed before the Civil Judge, Khed where an injunction was granted.

3. The Ministry of Environment and Forests (hereafter ‘MoEF’ for short) filed a private complaint RCC/12/2022 before the JMFC, Dapoli under Sections 5, 7 read with 15 of the Environment (Protection) Act, 1986 (hereafter ‘EP Act’ for short) and Sections 420 read with 34 of the Indian Penal Code, 1860 (hereafter ‘IPC’ for short). Treating the above private complaint as a predicate offence, respondent registered the ECIR. The statement of the applicant was recorded by the Directorate of Enforcement (hereafter ‘ED’ for short) on 26/05/2022 and 27/05/2022. The JMFC, Dapoli directed the investigation by Dapoli Police Station under Section 202 of the Code of Criminal Procedure (hereafter ‘Cr.P.C.’ for short) on 14/09/2022. A report was filed and the matter was proceeded on 09/11/2022 before the JMFC, Dapoli for orders on the private complaint of MoEF.

4. On 08/11/2022 at 00.02 hrs, Mrs. Rupa Dighe, block development officer, attended Dapoli Police Station and at her instance, First Information Report (hereafter ‘FIR’ for short) No. 177 of 2022 came to be lodged against Shri Anil Parab under Section 420 of the IPC. The FIR was registered on the basis that Shri Anil Parab applied for assessment of the structure to property tax despite the structure not being complete and also applied for electricity connection despite the construction not being complete and in this manner, he committed the offence of cheating.

5. On 09/11/2022, JMFC Dapoli issued process on the private complaint of MoEF under the provisions of the EP Act. On 07/12/2022 and 08/12/2022, statements of the applicant were again recorded by the ED. On 16/02/2023, the applicant retracted all the statements made to the ED. The applicant was arrested on 10/03/2023.

6. The Sessions Court allowed the Revision Application filed against the order issuing process on the private complaint of MoEF. The order issuing process on the MoEF complaint is set aside on merits. The revisional Court observed that the resort was never operational and no effluents were released into the sea.

7. The scope of the FIR No. 177 of 2022 was expanded by Dapoli Police Station by arresting