The Delhi High Court has granted bail to two former members of the banned Popular Front of India (PFI), Anshad Badruddin and Abdul Khader Puttur, in a money laundering case filed by the Enforcement Directorate (ED). The court observed that there was no prima facie evidence to show that the salaries they received from the organisation were “proceeds of crime” under the Prevention of Money Laundering Act (PMLA).
The two men were arrested by the ED in March 2024 based on an Enforcement Case Information Report (ECIR) linked to a National Investigation Agency (NIA) probe. According to the agency, both had worked as physical training instructors for the PFI and received payments from the organisation.
Court Says Salary Alone Cannot Be Treated as ‘Proceeds of Crime’
Justice Purushaindra Kumar Kaurav noted that merely receiving payment for physical training from the PFI before the organisation was banned cannot automatically be considered illegal.
The court said that for any money to be treated as “proceeds of crime” under the PMLA, it must first be established that it originated from a scheduled offence.
The High Court observed that, at this stage, there was no sufficient material to prima facie conclude that the salaries paid to the accused qualified as proceeds of crime under the law.
Trial Will Decide Allegations, Says Court
The ED had also alleged that the accused were involved in activities related to weapons training.
However, the court said that even if such allegations were assumed to be true, their authenticity and legal consequences would have to be examined during the trial.
The court held that these allegations alone could not justify treating the salaries received by the accused as proceeds of crime under the PMLA.
Long Incarceration Weighed in Favour of Bail
The High Court also took note of the prolonged incarceration of both accused. It observed that they had remained in judicial custody for more than two years and three months without charges being framed against them.
The court further noted that there was no immediate possibility of the trial concluding soon. Keeping the accused in custody for such a long period without the commencement of trial was not justified, it said.
Considering these circumstances, the Delhi High Court granted bail to Anshad Badruddin and Abdul Khader Puttur in the ED’s money laundering case.
