Failed to Satisfy Twin Condition u/s 45 of PMLA: Allahabad HC Refuses to Grant Bail [Read Order]

The Allahabad High Court ( HC ) refused to grant bail since the assessee failed to satisfy the twin condition under section 45 of the Prevention of Money Laundering Act, 2002 ( PMLA ).

Abdul Razak Peediyakkal, the applicant is in jail since 10.03.2022 under Sections 3, 4 & 70 of the Prevention of Money Laundering Act, 2002.

The applicant has submitted that he has been falsely implicated in the case by the Enforcement Directorate ("E.D.") since no case is made out against the accused-applicant under Section 3 of the Prevention of Money Laundering Act, 2002 ("the PMLA"), which is punishable under Section 4 of the PMLA.

It was submitted that the offence of money laundering as defined under Section 3 of the PMLA specifically posits that whosoever directly or indirectly attempts to indulge or knowingly assists or is a party or is involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of the offence of money laundering.

The definition of 'proceeds of crime’ is provided under Section 2 (u) of the Act which means “any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the nature of any such property”. Under the provisions of Sections 44 and 45 of PMLA, the E.D. has filed a complaint and supplementary complaint under Sections 3, 4 & 70 of the PMLA dated 06.02.2021 and 06.05.2022 respectively.

Justice Rajesh Singh Chauhan observed that a person may not be involved in original criminal activity that had resulted in the generation of proceed of crime but he can join the main accused either as an abettor or conspirator for committing the offence of money laundering by helping him in laundering the proceed of crime. Therefore, just because the applicant was not named or not prosecuted for the predicate offence, his prosecution for money laundering cannot be said to be illegal.

The Court observed that the bail application of the present application does not qualify the twin conditions of Section 45 of the PMLA since at this stage it cannot be observed that the present applicant has not committed the offence for which the complaint has been filed against him. The proceed of crime are also in crores. The applicant is based in Abu Dhabi. The factum of guilt can be proved or disproved before the learned trial court. The Court rejected the bail application and directed the trial court to conclude the trial with an expedition, preferably within a period of six months by fixing a short date and no unnecessary adjournment shall be given.

To Read the full text of the Order CLICK HERE

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