Today(on 12th August), The Supreme Court of India granted bail to Bhagwan Bhagat and Sunil Yadav, two individuals involved in a high-profile money laundering case related to illegal mining in Jharkhand. The decision was made by a bench led by Justices Abhay S Oka and Augustine George Masih.
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NEW DELHI: Today(on 12th Monday), The Supreme Court of India, granted bail to two individuals implicated in a high-profile money laundering case associated with illegal mining activities in Jharkhand. The accused, Bhagwan Bhagat and Sunil Yadav, were released on bail following a ruling by a bench comprising Justices Abhay S Oka and Augustine George Masih.
Background of the Case
The case revolves around allegations of illegal mining and the subsequent laundering of funds obtained from these unlawful activities. The Enforcement Directorate (ED), which has been actively pursuing the matter, arrested Bhagwan Bhagat on July 7, 2023. The arrest was based on accusations that Bhagat was not only involved in illegal mining but also played a role in laundering the proceeds of these illicit activities for another individual.
Arguments Presented
Senior Advocate Pramod Kumar Dubey, along with advocate-on-record Sonam Gupta and advocate Kaushik Moitra, represented Bhagwan Bhagat in the court proceedings. They argued that in the absence of a predicate offense—a prerequisite for prosecution under the Prevention of Money Laundering Act (PMLA)—their client could not be justifiably held in custody.
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Dubey emphasized-
“In rejecting the petitioner’s bail, the High Court failed to consider that the respondent’s prosecution under Section 3 of the PMLA, 2002, lacks any identified scheduled offence related to which the petitioner has received or handled proceeds of crime, which is essential for maintaining a prosecution under the PMLA.”
High Court’s Initial Ruling
Bhagat had earlier challenged a Jharkhand High Court order dated April 12, which denied him bail. The High Court’s decision to reject the bail was largely influenced by the large number of First Information Reports (FIRs) associated with the case. A total of 54 FIRs had been clubbed together by the Enforcement Directorate into a single Enforcement Case Information Report (ECIR).
Issues with the Prosecution’s Case
The defense strongly contested the High Court’s ruling, arguing that the prosecution had failed to establish a direct connection between Bhagat and any predicate offense, which is crucial under the PMLA.
The petition pointed out-
“Bhagat, the petitioner, has not been charged with any predicate offence, and the respondent has not demonstrated any link between the petitioner and the alleged scheduled offence or any criminal activity related to it.”
Furthermore, the petition emphasized that Bhagat had complied with the investigation process over an extended period. He appeared before the authorities on seven occasions in response to summons issued over the course of one-and-a-half years of investigation.
Allegations by the Enforcement Directorate
The Enforcement Directorate’s case against Bhagat and others involved allegations that vehicles transporting mined materials, primarily stone chips, had to pass through the Barharwa toll before reaching the main roads. The agency also revealed that, in addition to mining operations under valid licenses, a significant amount of illegal mining was taking place in Sahibganj District and surrounding areas.
The ED’s investigation suggested that this illegal mining was being conducted on a vast scale, and the proceeds from these activities were being laundered through various channels. However, the defense maintained that there was no substantive evidence linking Bhagat to these activities or any associated predicate offense.
After carefully considering the arguments presented by both the defense and the prosecution, the Supreme Court bench decided to grant bail to Bhagwan Bhagat and Sunil Yadav. This decision is a notable development in the ongoing investigation and legal proceedings concerning illegal mining and money laundering in Jharkhand.
