Post-Demonetization Money Laundering Case: SC Rejects Advocate Rohit Tandon's Bail Plea [Read Judgment]

The Supreme Court, on Friday, upheld the Delhi High Court order denying bail to Advocate Rohit Tandon who was arrested in connection with an alleged money laundering case post demonetization.

The Bench comprising Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud ruled, "...we find no difficulty in upholding the opinion recorded by the Sessions Court as well as the High Court in this regard. In our opinion, both the Court have carefully analyzed the allegations and the material on records indicating the complicity of the appellant in the commission of crime punishable under Section 3/4 of the Act of 2002. The Court have maintained the delicate balance between the judgment of acquittal and conviction and order granting bail before commencement of trial. The material on record does not commend us to take a contrary view."

Mr. Tandon had been arrested after old and new currency notes worth Rs. 13.6 crore were seized from the Greater Kailash office of his law firm in a post-demonetization raid. He was then charged with illegally converting old currency notes in connivance with a bank official. He has since been in custody. The bail application filed by him was also rejected by a single Bench of Justice S.P. Garg in May this year.

Mr. Tandon had now contended that the incriminating material recovered from him does not take  the color of proceeds of crime.

The Court, however, noted that Mr. Tandon had maintained an "inexplicable silence" in disclosing the source of such huge value of demonetized and new currency. Noting that the alleged activities did prima facie amount to criminal activities, the Court observed, "The possession of demonetized currency in one sense, ostensibly, may appear to be only a facet of unaccounted money in reference to the provisions of the Income Tax Act or other taxation laws. However, the stated activity allegedly indulged into by the accused named in the commission of predicate offence is replete with mens rea. In that, the concealment, possession, acquisition or use of the property by projecting or claiming it as untainted property and converting the same by bank frauds, would certainly come within the sweep of criminal activity relating to a scheduled offence."

It then opined that Mr. Tandon had failed to dispel the legal presumption of the property being proceeds of crime and observed, "The volume of demonetized currency recovered from the office and residential premises of the appellant, including the bank drafts in favor of fictitious persons and also the new currency notes for huge amount, leave no manner of doubt that it was the outcome of some process or activity connected with the proceeds of crime projecting the property as untainted property. No explanation has been offered by the appellant to dispel the legal presumption "

While rejecting Mr. Tandon's bail plea, the Court noted that he has been in custody since 28 December last year, and that the offence is punishable with a minimum term of 3 years. It then advised the Trial Court to proceed with the trial on a day-­to-­day basis, expeditiously.