The Supreme Court has granted anticipatory bail to Odisha Administrative Service ( OAS ) Officer Bijay Ketan Sahoo, who is embroiled in a money laundering case filed by the Directorate of Enforcement ( ED ) concerning disproportionate assets.
“The case is covered by the decision of this court in Tarsem Lal v. Directorate of Enforcement. Hence, the interim order dated 24 June 2024 is made absolute,” the court declared in its order.
Sahoo’s request for anticipatory bail is linked to allegations of possessing disproportionate assets amounting to Rs. 5 Crores. The origins of the case trace back to an FIR filed against Sahoo, his wife Nalini Prusty, a State Financial Official, and several other family members for owning assets that far exceeded their declared income.
The ED initiated an investigation under the Prevention of Money Laundering Act ( PMLA ), resulting in summons being issued to Sahoo by the Special Court in Bhubaneswar. Allegations include that Sahoo and his wife acquired multiple properties, including six plots and a triple-storied structure in Bhubaneswar, registered under a relative’s name who could not substantiate an independent source of income.
The Supreme Court decision to grant interim protection was influenced by Sahoo’s counsel, who highlighted that Sahoo had been cooperating with the investigation for three years without arrest.
The two-judge Supreme Court bench comprising Justice Abhay Oka and Justice Augustine George Masih confirmed an order from June 24, 2024, which provided Sahoo with interim protection from arrest. The court referred to the precedent set in the case of Tarsem Lal v. Directorate of Enforcement, where it was established that the ED cannot arrest an accused under Section 19 (power to arrest) of the Prevention of Money Laundering Act after the Special Court has taken cognizance of the complaint.
The anticipatory bail petition was filed following a summons notice issued by the PMLA Court. This background and Sahoo’s cooperation with the investigation played a significant role in the court’s decision to grant anticipatory bail, reinforcing the judicial precedent that curtails the arrest powers of the Directorate of Enforcement post-cognizance by the Special Court.
The anticipatory bail ensures that Sahoo remains free while the investigation continues.
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