Calcutta High Court Grants Bail in PMLA Case: Extended Incarceration Overrides Section 45 Rigours — Chandan Mondal Vs Enforcement Directorate

Overview of the Case

The Calcutta High Court recently adjudicated a bail application arising from a money laundering matter registered under Section 3 and Section 4 of the Prevention of Money Laundering Act, 2002 (PMLA). The petitioner, Chandan Mondal, had been taken into custody on 26 November 2024 and had remained incarcerated for approximately one year and six months in connection with the PMLA proceedings. The underlying criminal activity that gave rise to the Enforcement Directorate's (ED) investigation stemmed from two CBI cases involving alleged large-scale illegal recruitment of Group C and Group D employees across schools in West Bengal.

The case presents a critical judicial examination of the interplay between the stringent twin conditions prescribed under Section 45 of the PMLA and the constitutional safeguard enshrined in Article 21 of the Constitution of India, particularly in situations where an accused faces protracted detention without the prospect of an imminent trial.

Background: The Predicate Offences and PMLA Registration

The Enforcement Directorate registered ECIR No. KLZO-II/17/2022 on 31.05.2022 to investigate proceeds of crime emanating from two CBI FIRs:

• RC0102022A0002 dated 05.04.2022 — pertaining to illegal recruitment of Group C staff, registered under Sections 120B/420/468/471 of the Indian Penal Code read with Section 7 of the Prevention of Corruption Act.
• RC0102022A0005 dated 20.05.2022 — pertaining to illegal recruitment of Group D staff, registered under Sections 120B/417/465/468/34 of the Indian Penal Code read with Section 7 of the Prevention of Corruption Act.

Both FIRs were registered pursuant to directions issued by the Calcutta High Court.

The scope of the alleged scam was staggering — involving manipulation in 3,481 instances for Group C and 2,823 instances for Group D candidates relating to OMR sheet marks, with total proceeds of crime purportedly running into hundreds of crores of rupees.

Multiple chargesheets were filed in both predicate cases. Crucially, the petitioner's name did not appear in the original FIRs or initial chargesheets. He was first mentioned only in the 1st Supplementary Chargesheet dated 15.03.2023 pertaining to RC0102022A0005.

Profile of the Petitioner and His Alleged Role

Chandan Mondal is a 62-year-old senior citizen, a graduate holding a B.A. Honours in English, who worked as a Para-Teacher from 2007 to May 2024, offered private tuition to approximately 100–150 students, and operated a small agricultural trading business under the name M/s Mondal Enterprises with an annual turnover of approximately Rs. 5 to 6 lakhs. His primary income sources included a monthly salary of approximately Rs. 10,000, tuition income, and modest business profits.

The Enforcement Directorate, however, painted an entirely different picture of the petitioner's activities, contending that: