Delhi HC says early bail hampers PMLA probe, denies relief to businessman

The transactions were made under the guise of import goods, without any actual corresponding business activity, the ED alleged

The Delhi High Court has denied anticipatory bail to a Hong Kong-based Indian businessman in a PMLA case and said giving the reprieve prematurely impedes investigation and undermines the objective of anti-money laundering law.

Justice Ravinder Dudeja denied the relief to Amrit Pal Singh in a Prevention of Money Laundering Act (PMLA) case.

Singh was the director of Broway Group Ltd, which was the alleged beneficiary of "fraudulent" foreign outward remittances amounting to USD 2,880,210 (approximately Rs 20.75 crore), originating from Indian shell entities.

These transactions were made under the guise of import goods, without any actual corresponding business activity, the ED alleged.

"Custodial interrogation may be warranted to ascertain the applicant's role in facilitating or benefiting from the alleged money laundering operation. Premature grant of bail would impede investigation and compromise the statutory objectives of the PMLA," the order read.

The court on July 1 further noted that Singh's conduct, marked by sustained non-cooperation despite issuance of repeated notices, weighed heavily against the grant of pre-arrest protection.

"His non-appearance in response to summons and evasion of investigation reflect a lack of bona fides and do not inspire confidence in his willingness to cooperate with the authorities... Notably, there is no denial on the applicant's part regarding the receipt of summons, yet he consistently failed to appear and evaded the process of law on untenable pretexts," the judge added.

Criminal proceedings against the accused's company, the court said, were still at an initial stage.