Kappan Bail In PMLA Case| "No Other Transaction Alleged Except For ₹5K Received In Bank Account Of Co-Accused": Allahabad HC

The Allahabad High Court today granted bail to Kerala journalist Siddique Kappan in connection with a Prevention of Money Laundering Act (PMLA) case initiated against him by the Enforcement Directorate (ED).

Significantly, the Bench of Justice Dinesh Kumar Singh noted in its order that except for the allegations that ₹5K was transferred in the bank account of the co-accused (Atikur Rahman), there is no other transaction, either in the bank account of Kappan or in the Co-accused bank account.

"Even if it is believed that part of the proceeds of the crime was transferred to the bank account of the co-accused, Atikur Rahman that itself may not be sufficient to prove that the accused-applicant has dealt with the proceeds of crime amounting to Rs. 1,36,14,291/-which had been allegedly received by K.A. Rauf Sherif," the bench added (emphasis supplied).

This observation of the High Court assumes significance as due to the pendency of this very case against him, Kappan had to remain in jail for 3 more months despite being granted bail in all other cases by the Supreme Court in September 2022.

Essentially, the ED's case against Kappan was that Kappan and his co-accused are members of the 'Popular Front of India' (PFI) and in furtherance of a larger conspiracy hatched by the Secretary of PFI (K.A. Rauf Sherif), they visited Hathras with an intention to disturb communal harmony, instigating riots and spreading terror and to fund anti-CAA protest and for other unlawful activities of PFI.

It has been further alleged that to give effect to the said criminal conspiracy, Rs. 1,36,14,291/- was collected from abroad through bogus and manufactured transactions, and the same were transferred in the account of co-accused.

Importantly, the ED has alleged that the proceeds of crime generated through the offence of criminal conspiracy under Section 120-B IPC, which is scheduled offence under PMLA, was used by K.A. Rauf Sherif and his associates, namely, Atikur Rahman, Masud Ahmed, Sidhique Kappan (present accused-applicant) and Mohd. Alam to commit offences under Sections 17 and 18 of the Unlawful Activities (Prevention) Act, 1967.

However, the complaint disclosed that only Rs.5,000/- was transferred to the bank account of Kappan's co-accused Atikur Rahman, who was accompanying the accused-applicant.In other words, except for Rs.5,000/-, no other transaction was shown to have been received by the accused-applicant or Atikur Rahman.

In view of this, noting that except for allegations that Rs. 5,000/- was transferred in the bank account of co-accused, Atikur Rahman, there is no other transaction, either in the bank account of the accused-applicant or in the bank account of the co-accused, the Court granted him bail by observing thus:

"Considering the aforesaid facts, coupled with the contention on behalf of the accused-applicant that in the present case the twin conditions, as mentioned under Section 45 of the PMLA, are not attracted inasmuch as the proceeds of crime is less than Rs.1 Crore and there is no likelihood of the accused-applicant to commit the same offence in future, and the fact the accused-applicant has already been in prison in predicate offences from 05.10.2020 till he was enlarged on bail by the Supreme Court, and thereafter he is in custody of the ED, I am of the view that the accused-applicant is entitled to be released on bail."

Case title - Sidhique Kappan vs. Directorate Of Enforcement Thru. Assistant Director Lucknow [CRIMINAL MISC. BAIL APPLICATION No. - 13642 of 2022]

Case Citation: 2022 LiveLaw (AB) 537

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