Bail can be granted to accused if trial is unlikely to be completed in near future: Punjab and Haryana High Court

The Punjab and Haryana High Court has said that bail may be granted to the accused under the Prevention of Money Laundering Act, 2002 (PMLA) if the trial is not likely to be completed quickly if circumstances warrant.

These observations were made during the award bail to Aam Admi Party (AAP) MLA Jaswant Singh in a money laundering case.

Justice Mahabir Singh Sindhu noted that Singh has been in custody since 6.11.2023. The complaint was filed on 04.01.2024. As per the ED’s own stand, investigation into other co-accused is still ongoing. “There would therefore be no possibility even remotely that the trial is likely to be concluded in the near future,” the Court added.

It further noted that it has also been recorded that out of the total dues of Rs.41 crore, an amount of over Rs.35.50 crore has already been recovered and seized by the ED

While perusing the medical records, Justice Sindhu opined that Singh “is not in good health and he can be safely termed as a “sick person” within the ambit of Section 45 of PMLA.”

Singh was booked under PMLA for allegedly being a director and guarantor of a company M/s TCL, which had obtained loan and credit facilities of over Rs.41 crores. The amount is said to have been transferred to other companies, in violation of the conditions for extending the credit facilities.

An FIR was lodged under Sections 406, 409, 420, 421 and 120-B of the Indian Penal Code, 1860 (IPC) and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988. Thereafter, ED found that offenses fall under the definition of “Scheduled Offense” under Section 2 (y) of PMLA.

After examining the documents submitted, the Court considered the following The case of Manish Sisiodia wherein the Apex Court held that “Detention or imprisonment before being found guilty of a criminal offense should not become a punishment without trial. If the trial continues despite the prosecution’s assurances, and it is clear that the case will not be decided in the foreseeable future, the prayer for bail may be meritorious. Although the prosecution may relate to an economic crime, it is not appropriate to equate these cases with cases punishable by death, life imprisonment or ten years or more, such as offenses under the Narcotic Drugs and Psychotropic Substances Act from 1985. murder, cases of rape, dacoity, kidnapping for ransom, mass violence, etc.”

The Court rejected the ED’s contention that the petitioner could hamper the ongoing investigation if released on bail.

The judge said that ED’s objection is only based on assumptions and there is no material to substantiate the same, “therefore, the objection to that effect is hereby dismissed.”

Stating that “the court is fully satisfied that further detention of the petitioner would serve no purpose”, the Court approved the bail plea and imposed certain conditions.

Mr. Vikram Chaudhri, Senior Advocate, assisted by Ms. Hargun Sandhu, Advocate for the petitioner.

Mr. Satya Pal Jain, Addl. Solicitor General of India, assisted by Ms. Meghna Malik, Central Government. Defendant’s attorney.

Title: Jaswant Singh v. Enforcement Directorate

Click here to read/download the order