The court clarified the 'sick and infirm' criteria under Section 45(1) of the PMLA, emphasizing that serious health conditions can warrant bail, overriding traditional restrictions related to the nature of the offense.

JUDGMENT

Jasmeet Singh, J. This is an application filed seeking grant of regular bail to the applicant in the Complaint Case No. 20/2021 pending before learned Special Judge (PC Act), CBI-12, Rouse Avenue, District Courts, New Delhi titled `Devki Nandan Garg vs. Directorate of Enforcement' arising out of ECIR No. DLZO-1/12/2021.

2. It is stated that on 11.06.2020, a complaint was received from State Bank of India (SBI) and the Central Bureau of Investigation (CBI) registered case vide FIR RCO742020E0014 dated 31.12.2020 against M/s Shakti Bhog Foods Ltd. (hereinafter "SBFL") and others.

3. The offences mentioned in the FIR are under Section 120B read with Section 420 of the IPC, section 467, 468 and 471 IPC and section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act.

4. Since the offences in the FIR were scheduled offences under the provisions of the Prevention of Money Laundering Act ("PMLA"), as such ECIR No. DLZO-1/12/2021 was recorded on 31.01.2021 by the Directorate of Enforcement (DoE), Delhi Zonal Office-I, New Delhi.

5. The allegations are that the DoE conducted search at different premises of SBFL and various documents and electronic devices were seized and analyzed and the same show commission of scheduled offences, generation, acquisition, layering and siphoning off the proceeds of crime.

6. It is stated that SBFL had availed of various loan facilities from a consortium of banks led by SBI from 2006 onwards, and in order to acquire more loan funds from Banks, the company resorted to round tripping and money laundering using its various group companies as platforms.

7. SBFL had rotated its funds to group companies in the form of share investment, share application money, share premium, inter corporate deposits, compulsory convertible debentures, loans and advances and inter group purchases with the sole intent to launder and change colour of these loan funds from liabilities to assets.

8. SBFL classified many of transfers of borrowed fund as purchase and sale though there was no actual or little sale/purchase between M/s SBFL and its group entities. M/s Shakti Bhog Snacks Ltd. and Dash Exports Ltd. are alleged to be the main sister companies with which SBFL had entered into such purchase and sale transactions. These acts immensely inflated the net worth of the directors and their relatives.

9. Investigations conducted under the PMLA have revealed that SBFL borrowed, layered and siphoned off the loan funds using the platform of about 24 known group companies and firms controlled by the main Director and key management persons, namely, Mr. Kewal Krishan Kumar in association with his wife, sons and other managerial persons. The shareholding pattern of SBFL shows that SBFL was nothing, but family-owned concern of Mr. Kewal Krishan Kumar.

10. It is stated that SBFL in association with Mr. Kewal Krishan Kumar, Mr. Raman Bhuraria (Chartered Account) and the applicant were involved in paper sale/purchase transactions without conducting any actual business transactions which resulted in false inflation of the financials.

11. It is stated by Mr. Luthra, learned senior counsel appearing for the applicant, that the applicant is neither the Promoter nor the Chartered Account of SBFL. He is not mentioned either in the FIR or in the ECIR.

12. The role of the applicant in commission of the offence of money laundering in terms of Section 3 of the PMLA is mentioned as under:

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