The Bombay High Court, Suryaji Pandurang Jadhav was granted bail after more than 4 years of incarceration for his alleged involvement in a money-laundering case under the Prevention of Money Laundering Act, 2002 (PMLA). The court noted that Jadhav had already served more than half of the maximum sentence and suffered from stage 4 colon cancer. The case involved significant financial discrepancies in the Shivajirao Bhosale Cooperative Bank, with accusations of siphoning over ₹71 crores. Despite the seriousness of the charges, including sections from the Indian Penal Code (IPC) and PMLA, the court emphasized Applicant's right to liberty under Article 21 of the Constitution and Section 436A of CrPC. The bail was granted under strict conditions.

1. Introduction of Bail Application

• Section: The bail application was filed under Section 439 of CrPC and Section 45 of PMLA.
• Fact: Jadhav was arrested on March 5, 2021, in connection with the PMLA case, and had been incarcerated for more than 4 years in total, including prior charges under IPC.

2. Case Background and Charges

• Fact: An FIR was lodged by the Shivajinagar Police against Jadhav and others in 2020 based on financial discrepancies discovered by the RBI and statutory auditors of the Shivajirao Bhosale Bank.
• Allegation: Jadhav and co-accused conspired to siphon off ₹71.78 crore for personal gain, involving offenses under IPC Sections 406, 409, 420, 468, and 471.

3. Enforcement Directorate’s Case

• PMLA Case: Following the IPC charges, an ECIR was registered by the ED in 2020. Jadhav was accused of laundering proceeds of crime, leading to charges under Section 3 of PMLA.
• Prosecution's Opposition: ED strongly opposed the bail, citing the serious nature of the crime and evidence showing Jadhav’s involvement in financial fraud.

4. Arguments by Applicant’s Counsel

• Grounds for Bail: Jadhav’s counsel argued that Jadhav had served half the maximum sentence of 7 years and that he was suffering from colon cancer, emphasizing his constitutional right to a speedy trial under Article 21.
• Precedents Cited: Multiple Supreme Court judgments were cited, including Vijay Madanlal Choudhary vs Union of India and Manish Sisodia vs ED, highlighting long incarceration and health grounds as reasons for bail.

5. Court’s Reasoning and Application of Law

• Section 436A of CrPC: The court relied on Section 436A, which allows bail after half of the maximum sentence is served by the accused.
• Constitutional Rights: The right to liberty and speedy trial under Article 21 was emphasized over the restrictions of Section 45 of PMLA.
• Health Condition: The court noted Jadhav’s advanced age (72 years) and his diagnosis of stage 4 colon cancer as humanitarian grounds for bail.

6. Opposition by Enforcement Directorate

• Seriousness of Crime: ED argued that the gravity of the financial fraud, involving large sums of cash handed over to individuals as per Jadhav's instructions, merited continued custody under Section 45 of PMLA.
• Evidence: ED presented statements and register entries showing the movement of large sums of money linked to Jadhav’s role in the bank fraud.

7. Final Judgment and Bail Conditions

• Bail Granted: The court granted bail with a PR Bond of ₹5,00,000, on the condition that Jadhav does not reside in District Pune and reports regularly to the Sanjay Nagar Police Station, Sangli.
• Restrictions: Jadhav must avoid contact with prosecution witnesses and surrender his passport. The court also noted that the trial could take a long time to conclude due to the voluminous evidence and the involvement of 256 witnesses.

Acts and Sections Discussed:

1. Criminal Procedure Code, 1973 (CrPC):

   • Section 439: Power of High Court or Sessions Court to grant bail.
   • Section 436A: Limits on detention of undertrial prisoners.

2. Prevention of Money Laundering Act, 2002 (PMLA):

   • Section 3: Offense of money laundering.
   • Section 45: Conditions for bail in money laundering offenses.

3. Indian Penal Code, 1860 (IPC):

   • Section 420: Cheating and dishonestly inducing delivery of property.
   • Sections 406, 409: Criminal breach of trust.
   • Sections 468, 471: Forgery for cheating and using forged documents.

Ratio Decidendi:

The court granted bail by balancing the stringent conditions of Section 45 of PMLA with the rights of the accused under Article 21, recognizing that prolonged detention, coupled with Jadhav’s health, outweighed the statutory limitations for bail.

Subject:

Bail in Money Laundering Case under PMLA based on prolonged incarceration and health issues.

Right to Liberty, Article 21, Indian Penal Code, Financial Fraud.