Point of Law : For making an application in terms of section 439 of code, a person has to be in custody and section 438 of the code deals with direction for grant of bail to person apprehending arrest.

ORDER :

1. The lis involved in all the three criminal petitions is the same, therefore, the same were heard together and are disposed of by the following:

2. The Crl.P.No.9825 of 2021 is filed by the Directorate of Enforcement (DOE) under Section 482 of the Code of Criminal Procedure, 1973 (for short, ‘the Cr.P.C.’) to quash the proceedings in SR.No.8729 of 2021, dated 18.12.2021 on the file of the learned Metropolitan Sessions Judge at Nampally, Hyderabad.

3. The Crl.P.No.9846 of 2021 is filed by the DOE under Section 482 of the Cr.P.C. to quash the proceedings in SR.No.8731 of 2021, dated 18.12.2021 on the file of the learned Metropolitan Sessions Judge at Nampally, Hyderabad.

4. The Crl.P.No.10021 of 2021 is filed under Section 438 of the Cr.P.C. to enlarge the petitioner herein/Accused No.7 and respondent in Crl.P.No.9846 of 2021 on bail in the event of his arrest in Enforcement Cases Information Report (ECIR) i.e., ECIR/HYZO/22/2019 dated 23.12.2019 lodged by the DOE.

5. Vide note dated 31.12.2021, the Hon’ble Chief Justice directed the registry to list Crl.P.No.10021 of 2021 along with the Crl.P.No.9846 of 2021 before the Court having roster to deal with Criminal Petitions (quash) from 2018 onwards. Therefore, the Crl.P.No.10021 of 2021 was heard along with the Crl.P.No.9846 of 2021 and disposed of by this order.

6. Heard Sri T. Suryakaran Reddy, learned Additional Solicitor General of India representing Sri Gadi Praveen Kumar, learned Standing Counsel for the petitioner in Crl.P.Nos.9825 of 2021 and 9846 of 2021 and learned counsel appearing for the respondent in Crl.P.No.10021 of 2021 and Sri B. Adinarayana Rao, learned Senior Counsel representing Sri G.Prem Kumar Reddy, learned counsel appearing for the respondent in Crl.P.No.9846 of 2021 and learned counsel appearing for the petitioner in Crl.P.No.10021 of 2021 and Sri T.Niranjan Reddy, learned senior counsel representing Sri Sujith Jaiswal, learned counsel for the respondent in Crl.P.No.9825 of 2021.

7. Facts of the case in Crl.P.No.9825 OF 2021

(i). Pursuant to the order dated 25.07.2018 of Jharkhand High Court in PIL No.3503 of 2014 and 2470 of 2015, the CBI and ACB, Ranchi, had registered a case in FIR No.RC.2(A)/2018-R against M/s Ranchi Expressway Limited (M/s. REL), its Director and others to investigate the execution of a project of 4-laning of NH-33 from Ranchi to Jamshedpur and advances that were given by the lending banks in execution of the project which involved Rs.1655 Crores.

(ii) The above said crime was registered for the offences under Sections 120-B, 420, 468, 471 and 477-A of the IPC and Section 13(2) r/w Section 13(1)(a) of Prevention of Corruption Act, 1988 (for short, ‘the PC Act’) against the respondent and others. Since the above said offences are scheduled offences under the Prevention of Money Laundering Act, 2002 (for short, ‘the PMLA’), the DOE has initiated investigation under PMLA against the respondent and other accused by registering ECIR/HYZO/18/ 2020.

(iii). The respondent/accused is the Managing Director and authorized signatory of M/s. REL. He is also a key managerial person in Madhucon Group of Companies and M/s. REL. Allegedly, the respondent/accused has fraudulently induced the banks to release loans using false documents and has generated proceeds of crime in the present case.

(iv) The petitioner alleges that despite issuance of summons to appear and record his statement under Section 50 of the PMLA, the respondent had not appeared and is not cooperating with the investigation. Therefore on 17.12.2021, the DOE exercising its power under Section 19 of the PMLA, after recording the reasons to believe and informing the grounds, arrested the respondent. He was produced before the learned Metropolitan Sessions Judge and his judicial custody was sought by filing an application vide SR.No.8729 of 2021 under Section 167 of Cr.P.C. On 18.12.2021.

(v) The said application was returned by the learned Sessions Judge on the ground that no notice under