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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
SAMIT GOPAL, J.
Padam Singhee – Applicant
Versus
Directorate Of Enforcement - Opposite Party
Criminal MISC. Bail Application No. 32236 Of 2024
Decided On : 14-11-2024
Prevention of Money Laundering Act, 2002 - Sections 3 and 4 - Bail application - The applicant, Padam Singhee, sought bail under Section 439 of CrPC in connection with an ECIR under PMLA - The applicant has been in custody since 07.02.2024, with no charge sheet filed in the predicate offence - The court emphasized the principle that 'bail is the rule and jail is the exception' and noted the prolonged incarceration without trial violates Article 21 of the Constitution - The court granted bail subject to conditions to ensure attendance at trial and prevent tampering with evidence. (Paras 1-11, 25-29)
Facts of the case:
The applicant is accused of money laundering involving significant financial losses to Punjab National Bank, with allegations of siphoning off loans through shell companies.
Findings of Court:
The court found no likelihood of the trial concluding in a reasonable time and emphasized the need to uphold the applicant's right to liberty.
Issues: The main issues included the applicant's prolonged detention without trial and the applicability of bail conditions under PMLA.
Ratio Decidendi: The court reiterated that prolonged incarceration without trial infringes on the fundamental right to liberty and that bail should be granted unless there are compelling reasons to deny it.
Result: Bail granted to the applicant with specific conditions.
JUDGMENT :
(Samit Gopal, J.)
1. Heard Sri Kapil Sibal, learned Senior Advocate through Video Conferencing assisted by Sri Tanveer Ahmad Mir, Sri Ram M. Kaushik, learned counsels for the applicant, who are present in Court and Sri Gyan Prakash, learned Senior Advocate/Additional Solicitor General, Government of India assisted by Sri J.P. Mishra and Sri Kuldeep Srivastava, learned counsels for the Enforcement of Directorate/opposite party.
2. This Criminal Misc. Bail Application under Section 439 Code of Criminal Procedure,1973 has been filed by the applicant- Padam Singhee with the following prayers:-
It is further prayed that this Hon’ble Court may graciously be pleased to release the Applicant on Interim Bail in relation to Enforcement Case Information Report bearing No. ECIR/DLZO-I/35/2021 under Section ¾ of Prevention of Money Laundering Act, 2002 lodged by the Directorate of Enforcement on 26.03.2021; during the pendency of the present case before this Hon’ble Court, otherwise the personal liberty of the Applicant shall be at stake which cannot be compensated in any manner and/or to pass such other and further order this Hon’ble Court may deem fit and proper under the facts and circumstance of the case.”
3. The facts of the case are that a complaint dated 05.04.2024 was filed by the Assistant Director (PMLA), Directorate of Enforcement, Delhi Zonal Office-I, New Delhi against (i) M/s SVOGL Oil Gas & Energy Limited (through the then Chairman and Managing Director, Sh. Prem Singhee and the then Joint Managing Director) Tower-1, Fifth Floor, NBCC Plaza, Sector V, Push Vihar, New Delhi-110017, (ii) Mr. Padam Singhee S/o Late Sh. Chimanlal Singhee, Director of M/s. SVOGL and; (iii) Mr. Prem Singhee S/o Late Sh. Chimanlal Singhee, Director of M/s. SVOGL, (iv) M/s Practical Properties Private Limited (through Authorized Representative), 432-E, F/F Devli Village New Delhi South Delhi-110052, (v) M/s Bee Tee Credit Marketing Private Limited (through Authorized Representative), 90/N, New Alipore, 3rd Floor Flat No. 4, Block E, Kolkata West Bengal 700053, (vi) M/s Resimpex Real Estate Private Limited (through Authorized Representative), 605, Suncity Business Tower, Golf Course Road, Sector-54, Gurugram, Haryana 122001 and (vii) M/s Realtech Property Solution Private Limited (through Authorized Representative), 133-A, Flat No. 7, F/F, R/S, B/P, kh No. 301/350 Saidulajab Westend Marg, New Delhi South West Delhi 110030 with the following prayers:-
a. This Hon’ble Court may be pleased to take cognizance of the offence of money laundering as defined u/s 3, punishable u/s 4 of Prevention of Money Laundering Act, 2002, and proceed in accordance with law, issue summons against accused persons, try and punish according to law.
b. To pass appropriate order for confiscation of properties, to the extent of proceeds of crime of this case, frozen during search action dated 15.12.2024 and 06.01.2024 being proceeds of crime in terms of section 8 (5) of Prevention of Money Laundering Act, 2002.
c. Confiscate the properties attached vide Provisional Attachment Order No. 04/2024 dated 25.01.2024 in terms of section 8(5) of PMLA, 2002.
d. Confiscate the properties attached vide Provisional Attachment Order No.06/2024 dated 22.03.2024 in terms of section 8(5) of PMLA, 2002.
e. The Complaint craves leave of the Hon’ble Court to file Supplementary prosecution Complaint, if required.
f. To grant any other relief, which this Hon’ble Court deem fit and proper, in the facts and circumstances of the case.”
The court took cogni
Prolonged incarceration without trial infringes the right to liberty; bail is the rule, jail is the exception.
The right to a speedy trial is fundamental under Article 21, and prolonged incarceration without trial infringes on this right, warranting bail despite serious allegations.
The right to a speedy trial under Article 21 of the Constitution prevails, allowing bail under Section 436A of the CrPC despite statutory restrictions in the PMLA.
PMLA Section 45 twin conditions relaxable by constitutional courts for bail if prolonged custody (over 2 years) and unlikely timely trial violate Article 21, absent accused delay, with voluminous doc....
Bail – Delay and long detention in custody cannot be a ground for grant of bail in cases of money laundering.
Economic offences like money laundering under the PMLA warrant severe scrutiny for bail, emphasizing the right to a speedy trial while recognizing the gravity of the allegations and prolonged detenti....
In PMLA cases, constitutional courts grant bail despite Section 45 twin conditions if prolonged incarceration (over two years), trial delay not attributable to accused, and no reasonable trial conclu....
PMLA Section 45 twin conditions yield to Article 21 where prolonged pre-trial detention exceeds reasonable time without trial progress, converting detention to punishment; bail granted as rule when e....
Bail – Offence of money laundering – If incarceration of an undertrial accused is continued for an unreasonably long time, provisions may be exposed to vice of being violative of Article 21 of Consti....
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