The main legal point established in the judgment is that the rigors of Section 45 of the PML Act do not apply if the accused is not facing charges for scheduled offences under the PML Act.

A.J. Desai, J.

1. By way of the present application under Section 439 of the Code of Criminal Procedure, 1973 (hereinafter referred to as 'the Code') read with Section 45 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as 'PML Act'), the applicant has prayed to release him on regular bail in connection with Complaint No. - ECIR/1/STSZO/2014 registered at the instance of the respondent No. 2 - the authority appointed under the PML Act for the offences punishable under Section 3 read with Section 4 of the PML Act.

2. The brief facts arose from the record are as under:--

"2.1 An information was received from the Joint Commissioner of Customs, Surat vide letters dated 27.2.2014 and 6.3.2014 which revealed that Surat based diamond companies M/s. Harmony Diamonds Pvt. Ltd., M/s. Agni Gems Pvt. Ltd. and M/s. R.A. Distributors Pvt. Ltd. have filed fake bills of entry before the ICICI Bank for making foreign remittance through bank accounts with ICICI Bank, Surat. From the information so received it has come to the notice that within a span of two months i.e. January and February, 2014, remittances worth more than Rs. 1000 Crore against fake import documents viz. Bills of entry and invoices were made from the said accounts to Hongkong and Dubai. The Customs Department, Surat have confirmed that the bills of entry, in question, did not originate from their offices. Thus, the said bills of entry etc. against which the said remittances were affected were apparently fake. Enquiries made with the banks and the documents obtained from them revealed that the amount as mentioned below were remitted from the following companies having accounts with ICICI Bank. Thus, amount to the tune of Rs. 5395.75 Crores (Rupees Five Thousand Three Hundred Ninty Five Crores and Seventy Five Lacs) were remitted to companies in Hong Kong and UAE on the strength of fake bills of entry.

2.2 The investigation revealed that the above mentioned Indian entities had received the above said amounts through RTGS credits in their respective bank accounts with ICICI Bank primarily from certain other Indian firms viz. M/s. Vandana & Co., M/s. Natural Trading Co., M/s. Maruti Trading, M/s. Millenium & Co., M/s. Aarzoo Enterprises, M/s. GT Traders, M/s. M.D. Enterprises, M/s. Jash Traders etc. which had transferred the above said amounts from their accounts with Axis Bank held at Mumbai and Surat. These firms in turn had received RTGS Credits into their bank accounts from various other firms based in New Delhi, Mumbai and Surat.

2.3 It is submitted that initially investigation was carried out under the FEMA, 1999. Enquiries revealed that Afroz Mohamed Hasanfatta is the brain behind the entire racket of sending remittances outside India on the basis of forged bills of entry. He was assisted in this racket by Madanlal Jain and Bilal Haroon Gilani. Searches were conducted at the premises of Afroz Fatta in Surat and Madanlal Jain in Mumbai on 21.3.2014 and 28.3.2014 respectively which resulted in the recovery and seizure of documents, mobile phones, CPU etc.

2.4 In the meanwhile, a complaint was received by the Crime Branch, Surat from ICICI Bank against M/s. R.A. Distributors Pvt. Ltd. and its Directors alleging that the Company had prepared 17 fake bills of entry and presented the same before ICICI Bank for outward remittances based on which FIR No. I/16/2014 dated 11.4.2014 was registered by the Detection of Crime Branch, Surat Police under Sections 420, 465, 467, 468, 471, 477 A of Indian Penal Code. Another FIR No. I/17/2014 dated 13.4.2014 has also been registered by the Detection of Crime Branch, Surat Police against M/s. Harmony Diamonds Pvt. Ltd., M/s. Agni Gems Pvt. Ltd., and their Directors for similar offences.

2.5 Investigations under PML Act, 2002 have been initiated as the offences under Sections 120(B), 420, 467, 471 of Indian Penal Code are 'scheduled offences' in terms of Section 2(1)(y) of the PML Act which have been registered against