After rejection of his pleas twice, PMLA case accused cites newly-enacted law to get bail

Mumbai: An accused in a money laundering case, who had failed to secure bail twice under the erstwhile CrPC, has got relief from a special PMLA court after he cited the newly-enacted Bharatiya Nagarik Suraksha Sanhita.

The special court hearing cases under the Prevention of Money Laundering Act (PMLA) allowed the petition of Vinod Chaturvedi, who contended that BNSS permits first-time offenders to seek bail after serving one-third of their maximum sentence.

Chaturvedi, MD of Usher Agro Limited and other group companies, was arrested in September 2020 in a money laundering probe linked to an alleged Rs 915.65-crore bank fraud.

His previous attempts to seek bail under the erstwhile Criminal Procedure Code (CrPC) had been rejected by the special PMLA court and the Bombay High Court.

Chaturvedi filed a fresh plea before the PMLA court saying there was a “material change of circumstances” after BNSS came into force.

It was allowed by special PMLA Judge A C Daga on Wednesday.

The provisions of the BNSS, “meant to be a forward-thinking legislation of a transformative character”, are a marked departure from CrPC, especially regarding the grant of bail and custody of under-trial prisoners, the plea said.

Chaturvedi further pleaded that the maximum imprisonment under PMLA is seven years. He said section 479(1) of the BNSS permits first-time offenders to seek bail after serving one-third of their maximum sentence.

“The accused being a first-time offender is entitled to seek bail under the first provision to Section 479(1) of the BNSS. This provision was neither raised nor argued before all the courts in the earlier bail application under section 439 of CrPC, therefore, the present application,” the plea said, explaining the rationale behind the third petition despite two rejections.

After the introduction of the BNSS, the accused claimed, there has been a change in law with effect from July 1, 2024.

Since it was not available to the applicant in earlier bail applications and “such change is material change of which accused is entitled to seek benefit”, Chaturvedi said.

After hearing his submissions, the judge gave relief to Chaturvedi.

“Considering the fact that there is delay in commencement of the trial, secondly the accused has already undergone incarceration for the period of three years two months which is much more than one-third of the maximum prescribed punishment under PML Act, 2002,” the special court said.

It also noted that Chaturvedi has nearly completed half of the term of the maximum prescribed punishment under PMLA. Therefore, this is a fit case for granting bail under section 479(1) of BNSS, the judge said.

The PMLA case against Chaturvedi, registered by the Enforcement Directorate (ED), is based on a Central Bureau of Investigation (CBI) FIR wherein it was alleged that “the group has taken loan from a consortium of banks and siphoned off the same”.

“Proceeds of crime have been identified and quantified to the tune of Rs 915.65 crore in this case. The promoters formed 15 shell companies and carried out bogus transactions,” the ED has alleged.

It has also been alleged that the group companies linked to Chaturvedi also carried out “bogus” transactions with the Dewan Housing Finance Corporation group companies.