Maheshdan Prabhudan Langa Vs State of Gujarat & Anr. (Supreme Court of India)
The Supreme Court of India, while considering the challenge to the denial of bail under the Prevention of Money Laundering Act, 2002 (PMLA), granted interim bail to the petitioner, subject to stringent conditions, even as the Gujarat High Court had earlier refused regular bail on merits.
Before the Gujarat High Court, the petitioner had sought regular bail in connection with an ECIR registered by the Directorate of Enforcement for offences under Sections 3 and 4 of the PMLA. The ED’s case was founded on two FIRs alleging cheating and extortion. In the first FIR, it was alleged that the petitioner induced payment of ₹23 lakh through a third-party company on the promise of repayment and also caused payment of ₹5.68 lakh towards his wife’s birthday celebration, which was allegedly not repaid. In the second FIR, it was alleged that the petitioner demanded and received ₹40 lakh in cash in two tranches by promising favourable media coverage and later threatening adverse publicity. Both FIRs were cited as predicate offences for money laundering.
The prosecution case further alleged that the amounts obtained through these offences were laundered by purchasing office premises in the name of the petitioner’s wife. Statements recorded under Section 50 of the PMLA revealed contradictions between the petitioner and his wife regarding the purchase consideration of the property, with the wife stating a higher value and the petitioner stating a substantially lower amount, leading the ED to allege a cash component funded by proceeds of crime. During a search, ₹20 lakh cash was recovered from the petitioner’s residence, and conflicting explanations were given by the petitioner, his wife, and his sister-in-law regarding its source. Another transaction of ₹30 lakh in cash relating to a failed land deal was also relied upon by the ED as unexplained and suspected proceeds of crime.
