Delhi High Court Ruling: Bhaskar Yadav Vs Directorate of Enforcement
The High Court of Delhi has delivered a significant judgment concerning the principles of anticipatory bail under the Prevention of Money Laundering Act, 2002 (PMLA). In the matter of Bhaskar Yadav Vs Directorate of Enforcement, the Court addressed a crucial question: Does the investigating agency's decision not to arrest an accused during the initial stages of an inquiry create an entitlement to anticipatory bail?
The Bench held that the mere fact that the Directorate of Enforcement (DoE) chose not to arrest the accused initially does not preclude the agency from seeking custodial interrogation at a later stage, particularly when circumstances have changed. The Court dismissed the anticipatory bail application, emphasizing the gravity of economic offences and the stringent twin conditions mandated under Section 45 of the PMLA.
Factual Matrix of the Case
The genesis of the case lies in two First Information Reports (FIRs) registered by the Central Bureau of Investigation (CBI). These cases were filed for offences under Section 120B read with Section 420 of the Indian Penal Code (IPC), and Section 66C and Section 66D of the Information Technology Act.
The Modus Operandi
The prosecution alleged a large-scale conspiracy involving the siphoning of public funds. The modus operandi involved duping citizens under the guise of lucrative investments and part-time job opportunities. The funds collected in primary bank accounts were allegedly layered through a complex web of accounts across India.
The investigation revealed that the proceeds of crime were:
- Layered through multiple "mule" bank accounts.
- Encashed via overseas ATMs, primarily located in Dubai.
- Uploaded onto overseas fintech platforms, specifically PYYPL, using Visa and Master Cards issued by Indian banks.
PYYPL is a payment platform regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority. The prosecution contended that the accused utilized this platform to launder money efficiently across borders.
The Role of the Accused
The DoE initiated an investigation under the PMLA as the offences under the IPC were Scheduled Offences. The investigation identified a specific group operating in the Bijwasan area of New Delhi. The applicants, some of whom are Chartered Accountants, allegedly played a pivotal role in arranging these mule accounts and converting the proceeds of crime into cryptocurrency.