NAGANI AKRAM MOHAMMAD SHAFI Vs. UNION OF INDIA

JUDGEMENT

(1.) The present bail application involves a substantial question of law, which, though uncommon in the context of bail proceedings, assumes considerable importance for the proper adjudication of the present case. The core issue that arises for consideration is whether the references made in the Prevention of Money Laundering Act, 2002 (hereinafter referred to as 'PMLA'), to the provisions of the Indian Penal Code, 1860 (IPC) and the Code of Criminal Procedure, 1973 (CrPC), stand vitiated or rendered ineffective by virtue of the repeal of those enactments through the coming into force of the Bharatiya Nyaya Sanhita, 2023 (BNS) and the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). A further question that necessarily follows is whether such references in the PMLA are now to be construed as referring to the corresponding provisions under the new legislative regime embodied in the BNS and BNSS.

(2.) By this application filed under Sec. 483 of the BNSS and Sec. 45 of the PMLA, the applicant seeks regular bail in connection with ECIRMBZO-II202024 registered by the Directorate of Enforcement, Mumbai Zonal Office-II. The said ECIR corresponds to Special Case (PMLA) No. 191 of 2025, concerning offences punishable under Ss. 318(4), 338, and 340(2) of the BNS, the new penal code which has replaced the IPC. The applicant has been in custody since 20/11/2024 in relation to this case.

(3.) The prosecution case, in brief, is that during the period in question a huge amount of over 100 crore was deposited in Rs. fourteen newly opened accounts at the Nashik Merchant Cooperative Bank, Malegaon, District Nashik. These transactions were allegedly layered and routed in a manner to conceal their illicit origin, giving rise to suspicion of money laundering. FIR No. 295 of 2024 was registered on 7/11/2024 at the local police station for offences under the BNS. On 11/11/2024, the Enforcement Directorate registered the above ECIR, treating the offences disclosed in the FIR as scheduled offences under the PMLA, and commenced investigation under the PMLA. The applicant was arrested on 20/11/2024 in connection with the money laundering probe.