The Patna High Court has recently dismissed the bail application of Pranav Kumar Ghosh, who is accused in a money laundering case linked to the “Srijan Scam.”
Ghosh, the former Secretary of Srijan Mahila Vikas Sahyog Samiti Limited (SMVSSL), was arrested in 2021. The charges involve fraudulent transfers and misappropriation of substantial government funds, orchestrated through a conspiracy involving government officials, bank employees, and SMVSSL members.
Justice Madhuresh Prasad ruled that there are no reasonable grounds to believe that Ghosh is innocent or that he will not commit a similar offense while on bail.
Addressing the senior counsel’s argument that the petitioner was allegedly a beneficiary of an amount less than one crore rupees, the court stated, “The case at hand, as evident from the records, involves allegations of money laundering involving several crores of rupees by the accused persons. Hence, the petitioner cannot take advantage of the proviso to Section 45 of the PMLA.”
According to the prosecution, Ghosh received a significant sum of money from SMVSSL’s account, purportedly as a home loan of Rs. 25,00,000/-. However, there is no supporting documentation for this claim, and the loan amount was not directly credited to the builder.
The Enforcement Directorate (ED) uncovered substantial amounts of government funds diverted to SMVSSL’s bank account, implicating government officials. The investigation also revealed Ghosh’s involvement in auditing SMVSSL’s accounts from 2003-2004 and providing tax consultancy services to the organization from 2007-2008.
During the bail hearing, senior counsel YV Giri argued that the transactions in question were legitimate and related to Ghosh’s professional services as an auditor and tax consultant. He stressed that Ghosh’s association with SMVSSL was purely professional and that he had also provided services to other organizations. Additionally, he claimed that the amount involved in the money laundering activities was less than one crore rupees, which should be considered for bail under the proviso to Section 45(1) of the PMLA.
However, Additional Solicitor General (ASG) Dr. K.N. Singh contended that the evidence collected during the investigation indicates Ghosh’s close association with the late Manorama Devi, who was allegedly at the center of the scam. ASG Singh argued that Ghosh actively participated in layering the proceeds of crime through the guise of providing professional consultancy services. He asserted that Ghosh should be evaluated for bail based on the twin test under Section 45 of the PMLA, as upheld by the Supreme Court in the case of Vijay Madanlal Choudhary and Others v. Union of India and Others (2022 SCC Online SC 929).
ASG Singh further alleged that Ghosh knowingly acquired, possessed, used, and concealed the proceeds of crime in an attempt to legitimize and integrate them into the mainstream economy.
