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No indefinite pretrial detention when existence of proceeds of crime is doubted

Case Law Details

TaxGuru Citation
2026 taxguru.in 1827
Case Name
Amit Aggarwal Vs Directorate of Enforcement (Delhi High Court)
Date of Judgement/Order
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Amit Aggarwal Vs Directorate of Enforcement (Delhi High Court)

Delhi High Court held that there cannot be indefinite pretrial detention when the existence of proceeds of crime itself is seriously in doubt. Accordingly, continued detention is not warranted hence bail application allowed and regular bail granted.

Facts- This is an application for grant of regular bail filed on behalf of applicant in case FIR No. 45/2022 under Sections 3 and 4 of the Prevention of Money Laundering Act, registered at Police Station EOW. The applicant, Amit Aggarwal (Accused No. 21), along with Rahul Kumar (Accused No. 6), was identified as the kingpin and principal mastermind behind the operation. He controlled and operated the Indian shell entities and coordinated fraudulent outward remittances to 16 overseas entities in Singapore and Hong Kong. To conceal his identity, he operated under the alias name “Ravi Mehra” while dealing with banks, professionals, and associates, and played a key role in procuring and misusing Form 15CB certificates, which were later forged to justify illegal remittances.

Conclusion- Held that at the stage of bail, these explanations cannot be summarily rejected as illusory proceeds of crime without a clear and demonstrable nexus with the scheduled offence. In the absence of such foundational facts, the rigor of Section 45 stands diluted, as held by the Supreme Court in Vijay Madanlal Choudhary, when the existence of proceeds of crime itself is seriously in doubt.

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