Union of India Vs Kanhaiya Prasad (Supreme Court of India)
Section 45 PMLA Bail Order Set Aside for Non-Compliance with Twin Conditions: Supreme Court
The Supreme Court allowed the appeal filed by the Union of India through the Enforcement Directorate (ED) against the Patna High Court’s order granting bail to the respondent in a prosecution under the Prevention of Money Laundering Act, 2002 (PMLA). The prosecution arose from multiple FIRs registered in Bihar alleging illegal mining and sale of sand without departmental e-challans, causing an alleged revenue loss of ₹161,15,61,164 to the Government Exchequer. Since the FIRs involved scheduled offences under the PMLA, the ED registered ECIR No. PTZO/14/2023 and initiated investigation into alleged money laundering. During investigation, searches were conducted under Section 17 of the PMLA, statements were recorded under Section 50, and the respondent was arrested on 18.09.2023. The ED alleged that the respondent was involved in concealing and handling proceeds of crime amounting to ₹17,26,85,809, including routing funds through hawala channels for acquisition and renovation of a resort, construction of a school owned by a family trust, and laundering proceeds of crime generated through illegal sand mining. A prosecution complaint under Sections 3 and 4 of the PMLA was filed on 10.11.2023, and cognizance was taken on the same day.
