Mumbai: Money laundering case accused cites newly-enacted law to get bail

Representation pic

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 R915.65-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. After hearing his submissions, the judge gave relief to Chaturvedi.

The PMLA case

The PMLA case against Chaturvedi, registered by the ED, is based on a 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 R915.65 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.