PMLA| Supreme Court Grants Bail To Money Laundering Accused Considering Age & Custody Period

The Bench of Justices Sanjiv Khanna and Sanjay Kumar took into consideration that Merchant is 75 years of age and has already suffered actual incarceration for more than four years and nine months. The trial is pending.

"Having regard to the fact that the appellant, Humayun Suleman Merchant, is more than 75 years of age and has already suffered actual incarceration for four years and nine months, we accept the present appeal and direct that the appellant, Humayun Suleman Merchant, will be released on bail.." the bench ordered.

However, at the same time, it was clarified that the appellant (Merchant) shall surrender his passport and will not leave India without permission of the Trial Court. He was further directed to cooperate in the trial and will not seek adjournment. The Court noted that if these conditions are violated, the Trial Court can cancel the bail.

The Division Bench was hearing an appeal filed by Merchant against the Bombay High Court's order that denied him bail this February.

He had sought bail before the High Court on the ground of his long incarceration. However, the Court was of the view that it is its discretion whether to secure the release of a person awaiting his trial on the ground that he has undergone detention for a period extending up to one-half of the maximum period of imprisonment.

The Court said that there was sufficient material indicative of the merchant's active involvement. It was noted that the FIRs registered against Iqbal Mirchi, a noted gangster and an aide of Dawood Ibrahim and others, found him to be involved in smuggling narcotics and running extortion rackets.

During the investigation, it was found that Iqbal Mirchi has accumulated huge wealth and the proceeds so generated were layered and laundered by way of investment in many properties in various locations in State of Maharashtra, by projecting them as untainted.

The Court took into account the observations made by the Trial Court that the prosecution complaint indicated that the appellant was an active participant and a frontman of Iqbal Mirchi. He had knowledge of the process of generating, placing, layering and integrating the proceeds of crime as given under PMLA. It was further noted by the Trial Court that the appellant had a prominent role in Iqbal Mirchi's various illegal activities, and he assisted and participated in them.

In this regard, the High Court also noted that the Appellant's role has surfaced consistently. In view of these facts and circumstances, the High Court refused to grant him bail.

Senior advocate Sidharth Luthra appeared for Merchant, and ASG SV Raju appeared for the ED.

Case details: HUMAYUN SULEMAN MERCHANT Versus THE DIRECTORATE OF ENFORCEMENT AND ANR., SLP(Crl) No. 4321/2024

Citation : 2024 LiveLaw (SC )521