The Supreme Court of India, in Criminal Appeal No. 5416 of 2024, ruled in favor of granting bail to Prem Prakash, who was implicated in a case under the Prevention of Money Laundering Act, 2002 (PMLA). This judgment comes after the High Court of Jharkhand at Ranchi had earlier dismissed his bail application on March 22, 2024, in B.A. No. 9863 of 2023. Prem Prakash was seeking regular bail in connection with ECIR Case No. 5 of 2023, which was registered by the Directorate of Enforcement for offences under Sections 3 and 4 of the PMLA. The case is pending before the Court of the Special Judge, PMLA, Ranchi.
Case Details and Legal Issues:
The predicate offence leading to the registration of ECIR No. 5 of 2023 originated from FIR No. 399 of 2022, filed at Sadar Police Station on September 8, 2022, for multiple offences under the Indian Penal Code (IPC), including Sections 406 (criminal breach of trust), 420 (cheating), 467 (forgery of valuable security), 468 (forgery for the purpose of cheating), 447 (criminal trespass), and other related offences. Although Prem Prakash was not initially named as an accused in this FIR, subsequent investigations by the Enforcement Directorate implicated him, particularly in connection with fraudulent land transactions.
The core of the allegations revolves around a plot of land in Ranchi, where it was alleged that certain individuals, including Rajesh Rai and Imtiaz Ahmad, created fraudulent documents to acquire and sell the property. Specifically, Rajesh Rai, through a fabricated power of attorney, allegedly transferred the land to Punit Bhargava, a close associate of Prem Prakash, for a sum of approximately Rs. 1.78 crore. It was further alleged that the property was sold again within a short period to another accused, Bishnu Kumar Agarwal, for a similar amount. The Enforcement Directorate claimed that proceeds from these transactions were funneled into Jamini Enterprises, a firm purportedly controlled by Prem Prakash.
Supreme Court’s Analysis and Decision:
The Supreme Court bench, consisting of Justice B.R. Gavai and Justice K.V. Viswanathan, scrutinized the case against Prem Prakash, particularly under the stringent bail conditions prescribed by Section 45 of the PMLA. This section stipulates twin conditions for bail: the prosecution must be given an opportunity to oppose bail, and the court must be satisfied that the accused is not guilty and unlikely to commit an offence if released.
The court extensively discussed the application of these conditions, emphasizing the principles laid down in the landmark case Vijay Madanlal Choudhary vs. Union of India. Justice K.V. Viswanathan noted that while the PMLA’s provisions are rigorous, they do not amount to an absolute bar on granting bail. The Court quoted the principle that “bail is the rule and jail is the exception,” underscoring the constitutional right to personal liberty under Article 21 of the Indian Constitution.
Justice Viswanathan observed:
“Liberty of the individual is always a Rule and deprivation is the exception. Deprivation can only be by the procedure established by law, which has to be a valid and reasonable procedure. Section 45 of PMLA by imposing twin conditions does not re-write this principle to mean that deprivation is the norm and liberty is the exception.”
Supreme Court’s Observations:
The Supreme Court highlighted that despite the nature of the alleged offences, the evidence presented did not conclusively establish Prem Prakash’s direct involvement in the predicate offence or the subsequent laundering of money. The Court found merit in the arguments that the accusations were based on statements of co-accused, which do not constitute substantive evidence without independent corroboration.
Further, the Court noted that the appellant had already spent over a year in custody, and the trial had not yet commenced. Highlighting the constitutional mandate of the right to a speedy trial, the Court expressed concerns about prolonged pre-trial detention effectively amounting to a punishment without a verdict.
Bail Conditions:
The Supreme Court directed that Prem Prakash be released on bail upon furnishing a personal bond of Rs. 5 lakh with two sureties of the same amount. Additional conditions included surrendering his passport and reporting to the investigating officer twice a week. The Court also warned that Prem Prakash must not attempt to influence witnesses or tamper with evidence.
Legal Representation:
Prem Prakash was represented by Senior Advocate Mr. Ranjit Kumar, along with Mr. Indrajit Sinha and Mr. Siddharth Naidu. The Directorate of Enforcement was represented by Additional Solicitor General Mr. S.V. Raju, assisted by Mr. Zoheb Hussain and Mr. Kanu Agarwal.
