HC denies bail to Harmalkar in money-laundering case

PANAJI
The High Court of Bombay at Goa on Tuesday rejected the bail application of Rohan Harmalkar, currently lodged at the Central Jail in Colvale, in connection with a money-laundering case being investigated by the Directorate of Enforcement (ED).
In a detailed 28-page order, Justice Neela Gokhale held that the applicant had failed to satisfy the stringent twin conditions for bail under Section 45 of the Prevention of Money Laundering Act (PMLA), while also rejecting the contention that prolonged incarceration warranted his release.
The court observed that the defence had largely argued that the applicant should be exempted from the rigours of Section 45 because the investigation in the predicate or scheduled offence was continuing. However, the court found no merit in this submission.
The order recorded that ED had made it clear that it intended to file a final report indicting the applicant and not a closure report in the predicate offence. On that basis, the court held that the pendency of investigation in the scheduled offence did not by itself dilute the applicability of the PMLA’s bail restrictions.
It further noted that arguments on framing of charges had already been completed and that there was no delay attributable to the prosecution.
“The mere number of witnesses or documentary evidence cannot, by itself, be a ground for the grant of bail. The right to a speedy trial is assessed on the facts and circumstances of each case. Any delay in prosecution is not attributable to the prosecution. On the contrary, the ED has filed the charge sheet within the stipulated period itself,” the Court added.
Referring to the settled legal position, the court noted that economic offences pose a serious threat to the financial health of the country and therefore require a stricter approach. “The economic offences having deep-rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing a serious threat to the financial health of the country,” it said.
Rejecting the bail plea, the Bench held that the material placed on record by the ED prima facie establishes that there are no reasonable grounds to believe that the applicant is not guilty of the offence as alleged.
At the same time, the court clarified that all observations made in the order were prima facie in nature and confined only to the adjudication of the bail plea. It directed that the trial court should decide the case independently on its own merits, without being influenced by any observations in the bail order. Harmalkar is also being probed by Goa Police in the alleged Rs 1,000-crore-plus land scam.