What is the case about?
The appellant is one of the accused among six others for alleged offences under Section 406,407,415 to 420, 120B read with Section 34 of IPC.
The accused gave services to a company called Farmax India Limited in raising Global Depository Receipts. The FIR was filed by the managing director of the company who found out, by an enquiry with the bank, accused misappropriated the balance amount by forging the signatures.
FIR was lodged in 2013 but no final report has been filed so far. However, the matter of raising GDR became a matter of check and enquiry by SEBI.
The appellant was arrested on 26.09.2022 by the ED and was on the order of the Metropolitan Session judge, remanded to judicial custody.
Contentions of the Parties
The main argument by the counsel appearing on behalf of the appellant was that the appellant has been in jail since his arrest without any charge sheet. The predicate offence has been hanging since more than nine years. It was contended that nothing in the prosecution report of the ED shows that appellant is in possession of the ‘proceeds of the crime’
The learned counsel of the respondent drew attention of the court to section 45 of PMLA,2002. It was contended that in the light of two conditions given in the said section, the appeal for bail cannot be entertained.
Observations by the Court
The apex court allowed the appeal and directed appellant to be enlarged on bail.
Court held that continuous incarceration of the appellant wasn’t justified.
However, court held that the appellant satisfied second condition of Sec 45(1) under PMLA,2002.
Court directed the Metropolitan Session Court-cum- Special Court under PMLA to impose further terms and conditions.
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