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2024 Supreme(Online)(Bom) 2220
HIGH COURT OF BOMBAY
M. S. KARNIK, J
JAYRAM VINAYAK DESHPANDE – Appellant
Versus
DIRECTORATE OF ENFORCEMENT THROUGH THE ASSISTANT DIRECTOR AND ANR. – Respondent
BA/3553/2023
Mr. A.P. Mundargi, Senior Advocate a/w Mr. Subir Sarkar, Mr.Hrishikesh Mundargi, Ms.Paavani Chadha i/b Ms.Pravada Raut, for the Applicant. Mr.Ashish Chavan, for Respondent No.1. Mr. B.B. Kulkarni, APP for the State-Respondent No.2.
The court held that the applicant's role in money laundering was lesser than that of the co-accused, justifying bail under the Prevention of Money Laundering Act.
Headnote:(A) Prevention of Money Laundering Act, 2002 - Sections 3, 4, and 45 - Bail application under Section 439 of the Code of Criminal Procedure - Applicant accused of misusing authority to grant illegal land conversion permission in violation of Coastal Regulation Zone - Role attributed to applicant is assisting in money laundering, not generating proceeds of crime - Supreme Court's order regarding co-accused's bail considered - Bail granted with conditions. (Paras 6, 12, 13, 15)
(B) Bail - Conditions for granting bail under PMLA - No person accused of an offence under PMLA shall be released on bail unless twin conditions under Section 45 are satisfied - Role of applicant compared to co-accused is lesser, justifying bail. (Paras 12, 13)
Facts of the case:
The applicant, a Sub-Divisional Officer, was accused of granting illegal permission for land conversion within a No Development Zone, leading to money laundering activities. He was arrested on 13/03/2023. (Paras 3, 4)
Findings of Court:
The Special Court observed that the applicant's role was not of generating proceeds of crime but assisting in money laundering, allowing bail based on the Supreme Court's order for co-accused. (Paras 7, 12)
Issues: Whether the applicant's role in the alleged money laundering justifies bail, considering the Supreme Court's decision regarding the co-accused. (Paras 12, 13)
Ratio Decidendi: The court ruled that the applicant's role was significantly lesser than that of the prime accused, and thus, he is entitled to bail under the provisions of PMLA. (Paras 12, 13)
Result: Bail application allowed.
JUDGMENT :
1. Heard Shri Mundargi, learned senior advocate appearing for the applicant and Shri Ashish Chavan, learned counsel for the respondent no.1.
2. This is an application for bail under section 439 of the Code of Criminal Procedure read with section 45 of the Prevention of Money Laundering Act, 2002 (“PMLA”, for short) in connection with ECIR No. ECIR/MBZO-I/57/2022 registered with the Enforcement Directorate, Mumbai Zonal OfÏce-1 (“ED”, for short) for the offences punishable under sections 3 read with 4 of the PMLA.
3. The applicant is the accused no.2 in the aforesaid ECIR registered by ED. The said ECIR arises out of a private complaint bearing no. 12 of 2022 dated 10/03/2022 lodged by the Ministry of Environment, Forest and Climate before the Judicial Magistrate First Class, Dapoli for violation of section 19 and section 15 read with section 7 of the Environment (Protection) Act, 1986 . Section 15 read with section 7 being a scheduled offence under the PMLA, the said ECIR came to be registered. The applicant was arrested on 13/03/2023.
4. There are in all 6 accused in respect of the said ECIR. At the relevant time, the applicant was working as a Sub- Divisional OfÏcer at Dapoli, posted since 19/11/2015. On 27/07/2017, an application was made on behalf of accused no.1- Sadanand Kadam for conversion of land into NA in respect of Gat No. 446 at Murud for approximately one acre accompanied by a proposal for construction of twin bungalows. The applicant in his capacity as Sub-Divisional OfÏcer allowed the application on 12/09/2017 and granted NA permission. The accusation is that the applicant has misused his authority as despite the land falling within CRZ- III in respect of which no permission could have been granted, the applicant knowlingly proceeded to grant such permission. So far as the role played by the accused no.1 and the present applicant is concerned, the same is part of PMLA complaint, the relevant portion of which reads thus :
“12.ROLE PLAYED BY THE ACCUSED & CHARGES UNDER PMLA:
12.1 Accused Sadanand Kadam acted on behalf of Anil Parab to negotiate the purchase of agricultural land admeasuring 42 Gunta located at Gut No.446, Murud Dapoli, Ratnagiri knowing very well that the said land falls within Coastal Regulation Zon-III which is No Development Zone and any new construction is strictly prohibited therein as per Coastal Regulation Zone Notification of 2011.
Further, Sadanand Kadam in connivance with Vinod Depolkar and on the instance of Shri Anil Perab filed an application for conversion of the said land into non agriculture for the purpose of construction of Twin Bungalow, under the forged signature of erstwhile owner Vibhas Sathe. Thereafter, Sadanand Kadam influenced and pressurized Revenue Department Authorities viz. Jayraz Deshpande, the then SDO, Dapoli & Sudhir Shantaram Pardule, the then Circle ofÏcer, Dapoli, for acquiring illegal permission for conversion as well as construction over the said Agricultural Land and only after that Revenue Department authorities granted illegal permission for conversion of the said land into non agricultural and construction therein.
Sadanand Kadam on behalf Shri Anil Parab also looked after the construction of unauthorized structure end changed the construction plan to resort viz. Sai Resort NX even though the construction plan approved by Revenue Department was of Twin Bungalow. Further, Sadanand Kadam on behalf of Anil Parab had again used influence of Anil Parab, the then MLC and pressurized Suresh Shankar Tupe, Sarpanch & Anant Koli, Gram Sevak of Murud Gram Panchayat to assess & levy the tax immediately on the said unauthorized and illegal resort and to make entries in Gram Panchayat Form No.8, therefore, tax was levied on the incomplete structure due to pressure and influence of Shri Anil Parab used by Sadanand Kadam.
Accused Sadanand Kadam has also manipulated the balance sheets and invoices in order to show expenses made for the construction of Sai Resort NX on
