Economic Offenders Have Huge Proceeds Of Crime, May Use It To Affect Probe, Win Over Witnesses: Allahabad HC Denies Anticipatory Bail To Accused

The Allahabad High Court has recently rejected an anticipatory bail application filed by the erstwhile sleeping Director of M/s Surgicoin Medequip Pvt. Ltd who was accused in the National Rural Health Mission Scheme Scam.The Bench of Justice Chandra Dhari Singh, while rejecting the application filed under Section 438 CrPC noted that a criminal of economic offences has a larger amount of proceed of crime, which he may use and affect the investigation and win over witnesses."In socio-economic offences proceed of crimes are larger and further, offenders are economically sound, therefore, in releasing them on bail/anticipatory bail probability of abscondance not within country but beyond country is more probable. Usually socio-economic offenders abscond to some other country and after that it becomes difficult to bring them back and complete the criminal proceeding against them. Further, their monetary sound condition particularly proceed of crime obtained not by honest working but by deceiving others causes more prone situation for influencing witnesses and other evidences. Furthermore, status and position of offender provides opportunity to influence investigation and prosecution.""More the accused is economically sound and more the amount involved in a criminal case; it causes more the chance of affecting the requirements of criminal justice, more the accused is unfit for bail, thereby, more the chance of refusal to grant bail", the Court added.The Court further observed that crimes nowadays were committed by influential persons belonging to upper class in an organized manner after well planning by use of modern gadgets in course of performance of their official, professional, business activities in which they have expertise. "Criminal acts committed by professionals, businessmen and public servants, it is very difficult to identify whether sober and civilised activity was committed or criminal act was committed. Such criminals have no criminal self image, further by societal members there is no labelling which affect seriously pursuits to cope with crime and criminality. Economic offenders are only concerned with their personal gain even at the cost of irreparable and serious loss to society which provided socialization and made him a human being, provided status and position, provided respect and reputation, provided stature and means."These observations were made by the High Court while hearing an application filed under Section 438 CrPC seeking anticipatory bail apprehending arrest in a case registered under Section 3/4 of Prevention of Money Laundering Act, 2002 by the Enforcement Agency E.D., Lucknow. Background:The High Court vide order dated November 15, 2011 had directed the Central Bureau of Investigation to conduct a Preliminary Enquiry in the matter of execution and implementation of National Rural Health Mission (for short 'NRHM') and utilization of funds at various levels during such implementation in the entire State of Uttar Pradesh and to register regular cases in respect of the persons against whom prima facie cognizable offence were made out in accordance with law. Pursuant to this order, five separate preliminary enquiries were registered in different branches of CBI. On January 2, 2012, a first information report was registered by CBI under Sections 120-B r/w Sections 420, 409 of IPC and Section 13(2) r/w Section 13(1)(d) of the Prevention of Corruption Act against several persons. Furthermore, Directorate of Enforcement lodged Enforcement Case Information Report dated April 14, 2012 against all the persons named in FIR. Thereafter, the Directorate of Enforcement passed an order of Provisional Attachment dated April 5, 2017 and provisionally attached two of the properties.The Directorate of Enforcement preferred an Original Complaint on May 11, 2017 under Section 5(5) PMLA before Adjudicating Authority, PMLA, New Delhi seeking confirmation of the Provisional Attachment Order which was confirmed on September 13, 2017. Then the Directorate of Enforcement filed a Complaint under Section 45 of PMLA against M/S Surgicoin Mediquip Pvt. Ltd., Naresh Grover, the present applicant and Abhay Kumar Bajpai.Submissions Before Court:Advocate Priyam Kumar Singh submitted that accusations against the applicant were made with ulterior motives and offence under Section 3 of PMLA could not be made out against the applicant as none of the essentials under the provision were fulfilled.He added that the properties in question were acquired by the applicant in the year 2002 and 2001 and the alleged year of commission of the crime was 2010-11. The properties in question were never owned by the applicant nor the sale consideration of the properties was paid by the applicant. Hence, no question of proceeds of crime arose, he further stated.Assistant Solicitor General S.B. Pandey, on the other hand, argued that in terms of the twin conditions prescribed in Section 45 of PMLA, the Court could...

Economic Offenders Have Huge Proceeds Of Crime, May Use It To Affect Probe, Win Over Witnesses: Allahabad HC Denies Anticipatory Bail To Accused

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Allahabad High Court Denies Anticipatory Bail To NRHM Scam Accused

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