Jharkhand High Court Denies Exemption from Personal Appearance to Accused in Rs. 190 Crore Money Laundering Case

In a significant ruling, the High Court of Jharkhand at Ranchi has dismissed a petition seeking exemption from personal appearance by the accused in a high-profile money laundering case involving a staggering Rs. 190 crores. The case, W.P.(Cr.) No. 136 of 2023, had been filed by Rajeev Jhawar, the Managing Director of Usha Martin Limited, challenging the dismissal of his application for exemption by the District & Sessions-cum-Special Judge, who was hearing the case under the Prevention of Money Laundering Act, 2002.

The Court, presided over by HON'BLE MR. JUSTICE SANJAY KUMAR DWIVEDI, examined the merits of the petitioner's plea and the submissions made by both the petitioner's counsel, Mr. Sumeet Gadodia, and the counsel for the Enforcement Directorate, Mr. Amit Kumar Das.

The petitioner's counsel argued that the petitioner was not originally named as an accused in the FIR filed by the Central Bureau of Investigation (CBI) against Usha Martin Limited and others. However, the Enforcement Directorate subsequently added the petitioner's name through a supplementary complaint. The counsel contended that the petitioner had cooperated in the investigation and cited health issues and responsibilities abroad as reasons for seeking exemption.

On the other hand, the Enforcement Directorate's counsel asserted that the petitioner had not fully cooperated in the investigation, had left the country during the Covid-19 period, and had even been accused of attempting to bribe a CBI officer in a separate case.

In its ruling, the Court cited the serious nature of the allegations and the necessity of the accused personally appearing before the court. It emphasized that Section 205 of the Code of Criminal Procedure (Cr.P.C) provides a concession at the discretion of the learned Magistrate, and sufficient grounds must be established for exemption from personal appearance. The Court dismissed the petitioner's plea, upholding the lower court's decision to deny exemption.

The ruling sets an important precedent, as the Court observed that granting such exemptions in cases involving large sums of money and grave economic offenses could undermine public confidence in the administration of justice. The Court underscored that irrespective of a person's position, all accused are subject to the same legal processes and should face proceedings without any special privilege.

In this context, the Court referred to previous judgments, including "Rana Kapoor Vs. Directorate of Enforcement & Another," "Govind Prakash Pandey Vs. Directorate of Enforcement Govt. of India," and others, which had dealt with similar issues of exemption in bail applications.

Date of Decision: 06/02.08.2023             

Rajeev Jhawar vs Assistant Director