Srijan Scam: Patna High Court Rejects Bail Plea Of Accused In Money Laundering Case

The Patna High Court has rejected the bail application of Pranav Kumar Ghosh, an accused in a money laundering case related to the "Srijan Scam".

Ghosh, a former Secretary of Srijan Mahila Vikas Sahyog Samiti Limited (SMVSSL), was arrested in 2021. The predicate offences relate to alleged fraudulent transfers and misappropriation of huge sums of government money under a conspiracy between government officials, bank employees and office bearers and members of SMVSSL.

Justice Madhuresh Prasad said the court does not find reasonable grounds for believing that he is not guilty of the offence or that he is not likely to commit any such offence while on bail.

While rejecting the senior counsel’s submission regarding the petitioner being alleged beneficiary of an amount less than one crore rupees, the court observed, “The instant case, which is evident from the records, involves allegations pertaining to money laundering of several crores of rupees by the accused persons. The petitioner, therefore, cannot derive any benefit from the proviso to Section 45 of the PMLA,” the court held.

According to the prosecution, Ghosh had received a significant amount of money from the SMVSSL's account through cheque payments, purportedly as a home loan of Rs. 25,00,000/-. However, there was no documentary proof supporting this claim, and the loan amount was not directly credited to the builder, as per the prosecution.

Enforcement Directorate (ED) allegedly uncovered substantial amounts of government funds diverted to SMVSSL's bank account, with the involvement of government officials. The investigation also allegedly uncovered Ghosh's involvement in auditing the accounts of SMVSSL from 2003-2004 and providing tax consultancy services to the organisation from 2007-2008.

During the bail hearing, YV Giri, senior counsel arguing on behalf of Ghosh, argued that the transactions in question were legitimate and related to his professional services as an auditor and tax consultant for SMVSSL and Manorama Devi.

The senior counsel emphasized that Ghosh's relationship with SMVSSL was purely professional and that he had also provided services to other organisations. Furthermore, it was submitted that the amount involved in the money laundering activities was less than one crore rupees, warranting consideration for bail under the proviso to Section 45(1) of the PMLA.

However, the Additional Solicitor General (ASG) Dr. K.N. Singh argued that evidence gathered during the investigation reveals that Ghosh was closely associated with the late Manorma Devi, who was allegedly at the centre of the scam, and actively involved in layering of the proceeds of crime, in the garb of providing professional consultancy services.

ASG Singh said that Ghosh frequently met with Manorma Devi at her residence and effectively managed the affairs of SMVSSL, rooting the proceeds of crime through other individuals. He argued that Ghosh's bail should be considered by applying the twin test under Section 45 of the PMLA,, which was upheld by the Supreme Court in the case of Vijay Madanlal Choudhary and Others v. Union of India and Others 2022 SCC Online SC 929.

He further submitted that the petitioner knowingly acquired, possessed, used, and concealed the proceeds of crime in an attempt to legitimize them and integrate them into the mainstream economy.

Case Title: PRANAV KUMAR GHOSH vs. THE UNION OF INDIA and Others CRIMINAL MISCELLANEOUS No.49468 of 2022

Appearance:

For the Petitioner/s: Mr. Y.V. Giri, Sr. Advocate, Mr. Sumit Kumar Jha, Advocate, Ms. Riya Giri, Advocate

For the Opposite Party/s: Dr. K.N. Singh, A.S.G., Mr. Manoj Kumar Singh, CGC, Mr. Devansh Shankar Singh, JC to ASG, Mr. Sriram Krishna, Advocate, Mr. Ankit Kumar Singh, Advocate

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