Gautam Kundu Vs. Manoj Kumar Assistant Director
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Head Note
The Code of Criminal Procedure, 1973 - Section 439 , Prevention of Money Laundering Act, 2002 - Section 3
Securities and Exchange Board of India Act, 1992, Section 12A, 24 - Bail - Money Laundering - Appellant floated as many as 27 companies to allure the investors to invest in their different companies on a promise of high returns and funds were collected from the public at large which were subsequently laundered in associated companies of Rose Valley Group and were used for purchasing moveable and immoveable properties - Complaint was filed against the appellant on the allegation of committing offence punishable under Section 4 of the PMLA - Contention made on behalf of the appellant that no offence under Section 24 of the SEBI Act is made out against the appellant, which is a scheduled offence under the PMLA, needs to be considered from the material collected during the investigation and further to be considered by the competent court of law - High Court has called for all the relevant papers and duly taken note of that and thereafter after satisfying its conscience, refused the bail - No reason to interfere with the impugned order so passed by the High Court and the bail, as prayed, challenging the said order refused.
The Code of Criminal Procedure, 1973 - Section 439 , Prevention of Money Laundering Act, 2002 - Section 3
Securities and Exchange Board of India Act, 1992, Section 12A, 24 - Bail - Money Laundering - Section 45 of the PMLA will have overriding effect on the general provisions of the Code of Criminal Procedure in case of conflict between the - Section 45 of the PMLA imposes two conditions for grant of bail, specified under the said Act - Proviso to Section 45 of the said Act which indicates that the legislature has carved out an exception for grant of bail by a Special Court when any person is under the age of 16 years or is a woman or is a sick or infirm - Condition laid own under Section 45A of the PMLA, would bind the High Court as the provisions of special law having overriding effect on the provisions of Section 439 of the Code of Criminal Procedure for grant of bail to any person accused of committing offence punishable under Section 4 of the PMLA, even when the application for bail is considered under Section 439 of the Code of Criminal Procedure.
Topic(s)-Money Laundering - Bail not granted