Anticipatory bail granted for money laundering accusations despite minimal recent actions against applicants, underscoring the importance of cooperation with investigators and judicial discretion under PMLA.

Order on Board

16.01.2025

1. The applicants have preferred this first anticipatory bail application under Section 4 82 of the Bhartiya Nagarik Suraksha Sanhita, 2023 , apprehending their arrest in connection with Special Criminal Case No.04/2023 pending before the Special Judge, (Prevention of Money-Laundering Act/IVth Additional Sessions Judge, Raipur, in relation to Crime No.ECIR/01/NGR/2011 dated 10.01.2011 renumbered as ECIR/RPSZO/05/2013 and its subsequent addendum dated 10.02.2020, registered by Enforcement Directorate, Sub-Zonal Office-Nagpur for the commission of an offence punishable under Sections 3 & 4 of the Prevention of Money Laundering Act, 2002 (for short ‘the PMLA Act’).

2. The brief facts of the case are that the Income Tax sleuths conducted a search at the premises of Babulal Agrawal on 04.02.2010, which resulted in the seizure of cash amount of Rs. 68.10 lakhs and jewellery worth Rs. 70.20 lakhs and other assets worth Rs. 12.50 crores. A search was also conducted at the premises of co-accused Sunil Kumar Agrawal, C.A. of Babulal Agrawal where 230 bank passbooks were recovered. It is further alleged that Sunil Kumar Agrawal opened a bank account in the name of the villagers by using documents given by the villagers and forging their signatures. The money deposited in such bank accounts was channelized as share capital in M/s. Prime Ispat Limited through shell companies.

3. The allegation against the present applicant No.1 is that he was working with the main accused Babulal Agrawal as a Chartered Accountant (CA) from the year 2004-2005 to 2009-2010 and under the instructions of accused Pawan Agrawal and Alok Agrawal, he opened benami bank accounts of persons who were residents of Kharora, Motimpurakala, Chingariya and Madhepur and nearby villages. As far as applicants No.2 & 3 are concerned, they are relatives of applicant No.1. They assisted applicant No.1 in obtaining identity cards of the villagers for opening of about 446 bank accounts, etc. and also extended help to the co-accused persons for transferring the money in M/s. Prime Ispat Ltd. Co. and other shell companies. Further, they were one of the Directors of the shell companies who acted as mediators; thus, they are roped in this case.

4. Learned counsel for the applicants submitted that the present applicants have falsely been implicated in this matter. He further submitted that during the investigation, the applicants have never been arrested; and, the charge sheet has already been filed. He contended that the adjudicating authority has exonerated the main accused saying that there are no proceeds of crime generated in this matter. He further contended that on a similar subject matter, another ECIR has been registered, in which, anticipatory bail was granted by the Hon’ble Supreme Court. Thereafter, co-accused Sangeeta Agrawal and Mamta Agrawal were granted anticipatory bail by this Court in MCRCA Nos. 1162 of 2023 and 1309 of 2023 on 04.10.2023 and 10.04.2024, respectively. He also argued that in the matter of Satender Kumar Antil vs. Central Bureau of Investigation and Another reported in 2022 (10) SCC 51, the Hon’ble Supreme Court in paragraph 43 held that in a case where the prosecution does not require custody of the accused, there is no need for arrest when a case is sent to the magistrate under Section 170 of the Code. It is also observed that there is no need for filing a bail application as the case is merely forwarded to the court for