HC denied anticipatory bail to petitioner-directors as investigation was pending
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Case Details: Vuppalapati Venkata Rama Rao v. Enforcement Directorate - [2022] 135 taxmann.com 133 (Telangana)[08-10-2021]
Judiciary and Counsel Details
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- Dr. Shameem Akther, J.
Facts of the Case
The Petitioners-directors of company VMC were alleged to have indulged in money laundering offences. It was alleged that the petitioners resorted to various dubious transactions of the company, involving shell/dummy entities incorporated by them and by other fraudsters. The Directorate of Enforcement initiated a money-laundering investigation by registering subject crime. The Petitioners filed a petition under section 438 of Code of Criminal Procedure, 1973 seeking anticipatory bail on grounds that they were falsely implicated in the subject case. It was found that a huge amount of money had been laundered/siphoned and petitioners were indulged in money laundering offences by resorting to various dubious transactions in between companies, involving shell/dummy entities incorporated to perpetuate fraud and siphoned amounts.
High Court Held
Dismissing the bail plea, the High Court held that since the investigation was still in progress and if petitioners were granted anticipatory bail, the same would adversely affect investigation as petitioners may tamper with the evidence and there are also chances of fleeing away from the Country. Therefore, a grant of anticipatory bail, particularly in economic offences, would definitely hamper the effective investigation and, therefore, it was not a fit case to grant anticipatory bail to petitioners/accused under section 438 of Cr.P.C.
List of Cases Referred to
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- Bhadresh Bipinbhai Sheth v. State of Gujarat [2016] 1 SCC 152 (para 3)
- Vakamulla Chandrasekhar v. Enforcement Directorate [WP (Crl.) No. 852 of 2017, dated 8-5-2017] (para 4).
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