Bank Fraud | Punjab & Haryana High Court Grants Bail To Man Booked Under PMLA On Grounds Of Long Incarceration

The Punjab & Haryana High Court has granted bail to the former director of SEL Textiles Limited Neeraj Saluja in a money laundering case, accused of diverting loan amount for purposes other than what it was sanctioned for.Justice NS Shekhawat noted that "the petitioner was arrested in the present case on 18.01.2024 and continues to be in custody for the last more than 01 year. Even though, it has been stated that the complaint has been filed under the provisions of the PML Act, however, the further proceedings have been stayed and there is no likelihood of trial being completed within a reasonable time period."The Court added that the Supreme Court has held in a number of judgments that the right to speedy trial and the right to liberty are sacrosanct rights and this Court being a constitutional Court has to give due weightage to this factor.While noting that Saluja has been in custody for more than a year and trial had not commenced before the trial Court, the Court opined that, "the petitioner has apparently been denied of his right to speedy trial."Saluja was booked under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, registered by the Enforcement Directorate, Jalandhar.Senior counsel appearing for ED argued that the bail plea is not maintainable as the petitioner was not entitled to seek discretionary relief of bail without fulfilling the twin conditions as laid down under Section 45 of the PML Act."Money laundering offence is a serious threat to the national interest and the offence was committed with proper conspiracy and is a deliberate attempt to loot the money of the banks," he added.It was also alleged that during the investigation, it was found that the consortium of banks led by the Central Bank of India had disbursed the loan amount to the Company for the purpose of setting up manufacturing plants and working capital. However, the petitioner in connivance with other accused had illegally diverted part of loan amount to the tune of Rs. 81.03 crores to two companies, i.e., M/s Silverline Corporation Limited and M/s Rhythm Textiles and Apparels Park Limited, which were not owned by him.Apart from that, an amount of Rs. 191 crores approximately was diverted by the petitioner and other accused in the guise of export, causing a wrongful loss to the banks, the plea stated.After hearing the submissions, the Court noted that a Division Bench of the High Court had stayed further proceedings initiated against the petitioner in the FIR on the basis of which ECIR was lodged by the ED and later, the proceedings under ECIR was also stayed."Thus, when further proceedings in pursuance of FIR as well as ECIR have been stayed by a Division Bench of this Court; the matter is still sub-judice before this Court; no purpose will be served by keeping the petitioner behind the bars," opined Justice Shekhawat.While granting the relief of bail, the Court imposed certain conditions to prevent the escape of the petitioner from the country and to make him available before the trial Court during the trial.Mr. R.S. Rai, Senior Advocate and Mr. Anand Chiber, Senior Advocate Ms. Rubina Virmani, AdvocateMr. Shikhar Sarin, Advocate, Mr. Arjun S. Rai, Advocate Ms. Prachi Gupta, Advocate for the petitioner.Mr. Satya Pal Jain, Additional Solicitor General of India (through VC) with Ms. Meghna Malik, Advocate for the respondent.Title: Neeraj Saluja v. Directorate of EnforcementCitation: 2025 LiveLaw (PH) 31Click here to read/download the order

Bank Fraud | Punjab & Haryana High Court Grants Bail To Man Booked Under PMLA On Grounds Of Long Incarceration

Aiman J. Chishti

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Bank Fraud | Punjab & Haryana High Court Grants Bail To Man Booked Under PMLA On Grounds Of Long Incarceration

Aiman J. Chishti

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