Relief U/s. 205 CrPC Not Meant For Person Who Is A Flight Risk: Jharkhand HC Rejects Plea In Money Laundering Case

Further, it was also held, “The statutory mandate is over and above all the superiority, the accused possesses or claims to have by virtue of his position. Irrespective of his position, he is just an accused before the court of law, who is not entitled to claim any special privilege and is required to face the proceedings just like any other citizen. The provisions of Cr.P.C. does not distinguish between ordinary citizens and persons holding superior positions in their religious, political, social or other institutions.”

The Court additionally clarified that Section 205 of Cr.P.C. cannot be invoked in such serious cases where allegations of money laundering and grave offenses affecting the country's financial health were involved.

A petition sought to quash an order by the District & Sessions-cum-Special Judge, PMLA and C.B.I., which dismissed a Misc. Criminal Application which pertained to alleged Money Laundering under PMLA Act's section 3, punishable under section 4. Application under Cr.P.C. section 205 was rejected.

Advocate Sumeet Gadodia appeared for the petitioner and Advocate Amit Kumar Das appeared for the Respondent.

The counsel representing the petitioner, argued that the petitioner was not initially named in the FIRs and had cooperated in investigations. The Enforcement Directorate registered a complaint against Usha Martin Limited, and the petitioner was later included as an accused. The petitioner's health and foreign residence were cited as reasons for not appearing in court, invoking Section 205 Cr.P.C. The counsel for the Enforcement Directorate, countered that the petitioner left the country during the investigation, was charged with bribery, and the magnitude of the case's proceeds warranted denial of relief.

After considering the arguments presented by both counsels, the Court examined the case details. The petitioner, who is the Managing Director of Usha Martin Limited, has been accused of siphoning Rs. 190 crores in a case of money laundering. It was noted that the petitioner did not cooperate in the investigation and left the country, making him a flight risk. The petitioner was charged with attempting to bribe the then S.P., C.B.I., and was included as an accused in the chargesheet. Previous petitions seeking protection for the company officers were rejected by both this Court and the Supreme Court. The Court reiterated that regardless of the petitioner's position, he is an accused before the law and cannot claim special privileges. The petitioner's health condition and social obligations were deemed insufficient grounds for exemption.

“The petition under section 205 of Cr.P.C. meant for a bonafide person to abide by the law of the country not like this petitioner as he is already a flight risk. Moreover this petitioner is having some heart ailment wherein stunt has been put in his heart. Nowadays that is very common in the entire world and that cannot be ground of exemption under section 205 of Cr.P.C.”

The Court highlighted that the petitioner failed to cooperate in the investigation and chose not to apply for bail.

Considering the gravity of the allegations, the Court affirmed that economic offenses with deep-rooted conspiracies and substantial public fund losses need to be treated seriously. Consequently, the Court found no illegality in the order of the Special Judge and dismissed the petition. Any pending interlocutory applications were also dismissed.

Cause Title: Rajeev Jhawar v. Assistant Director, Enforcement Directorate

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