Kerala High Court
Gafoor. K.M vs The Assistant Director on 4 July, 2025
Author: Bechu Kurian Thomas
Bench: Bechu Kurian Thomas
B.A. No.5521/25 1
2025:KER:48904
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS
FRIDAY, THE 4TH DAY OF JULY 2025 / 13TH ASHADHA, 1947
BAIL APPL. NO. 5521 OF 2025
CRIME NO.1/2023 OF ENFORCEMENT DIRECTORATE, KOZHIKODE,
AGAINST THE ORDER DATED 13.03.2025 IN Bail Appl. NO.1032 OF
2025 OF HIGH COURT OF KERALA
PETITIONER/ACCUSED NO.3:
GAFOOR K.M.
AGED 46 YEARS, S/O MOIDEEN,
KANNUR URBAN NIDHINATH PEEDIKAYIL,
VARAVOOR (PO),
THRISSUR DISTRICT, PIN - 680585
BY ADVS.
SMT.M.B.SHYNI
SRI.K.K.DHEERENDRAKRISHNAN
SMT.N.P.ASHA
SHRI.HASSAN M.K
SHRI.ELDHOSE JOY
SHRI.SARAFUDHEEN T.
SHRI.V.R.ANILKUMAR
SHRI.AJITH P.C.
SMT.VISHNUJA BIJU
SHRI.AMARJITH VADUVANKUTY
RESPONDENT/COMPLAINANT:
THE ASSISTANT DIRECTOR
DIRECTORATE OF ENFORCEMENT,
GOVERNMENT OF INDIA, MINISTRY OF FINANCE,
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DEPARTMENT OF REVENUE,
KOZHIKODE SUB ZONAL OFFICE,
KOZHIKODE, PIN - 673001
BY ADV SHRI.JAISANKAR V.NAIR, SC, ENFORCEMENT
DIRECTORATE
THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON
01.07.2025, THE COURT ON 04.07.2025 DELIVERED THE FOLLOWING:
B.A. No.5521/25 3
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BECHU KURIAN THOMAS, J.
--------------------------------
B.A. No. 5521 of 2025
---------------------------------
Dated this the 4th day of July,2025
ORDER
Petitioner seeks regular bail under section 483 of the Bharatiya Nagarik
Suraksha Sanhita, 2023.
2. Petitioner is the 5th accused in ECIR/KZSZO/01/2023 of Enforcement
Directorate, Kozhikode. The said case is registered alleging commission of
offences punishable under sections 3 and 4 of the Prevention of Money
Laundering Act, 2002 (for short 'the PMLA'). Petitioner was arrested on
27.11.2024 and he has been in custody since then.
3.Petitioner is one of the promoters of a company by name 'Kannur
Urban Nidhi Limited'. The said company is alleged to have accepted fixed
deposits from several investors and thereafter diverted those funds for the
establishment and running of another company by name 'Any Time Money
Private Limited' and also to the personal accounts of the petitioner for which
199 crimes have been registered against the petitioner and other accused,
alleging commission of offences punishable under sections 409, 420 read with
section 34 of the Indian Penal Code, 1860 apart from the offence under
sections 3 and 5 read with section 21 of the Banning of Unregulated Deposit
Schemes Act, 2019. Subsequent to the registration of various crimes, treating
those crimes as a predicate offence, proceedings were initiated under the PMLA
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Act and the petitioner was arrested on 27.11.2024. Petitioner along with
Sri. Antony Sunny and Sri. Showkath Ali M.M., are stated to be the main
persons behind the 'Kannur Urban Nidhi Limited' as well as 'Any Time Money
Private Limited' ('ATM' for short).
4. According to the complaint, petitioner and the other accused are
alleged to have cheated their investors of more than Rs.40 Crores and
therefore proceedings under the PMLA Act was initiated and finally Annexure
A1 complaint was filed under section 44(1)(b) and section 45(1) of the PMLA
Act. According to the complaint, the accused connived together and collected
deposits to the tune of approximately Rs.80 Crores and thereafter swindled
around Rs.40 Crores, cheating various investors. Since section 420 of the IPC
is a scheduled offence, the amount of Rs.40 Crores swindled and siphoned off
by the accused are the proceeds of a crime generated out of a criminal activity.
5. Sri. K.K. Dheerendrakrishna, the learned counsel appearing for the
petitioner contended that the entire allegations in the complaint registered
against the petitioner are bereft of any merit and hence the petitioner cannot
be found to be guilty of the offences alleged. It was further submitted that the
petitioner was arrested on 27.11.2024 and hence his further custody is not
necessary. The learned counsel also submitted that for the predicate offence,
petitioner was arrested on 06.01.2023 and he was finally released on bail only
on 10.12.2023 and therefore the continued incarceration of the petitioner even
before the trial has been completed, is violative of Article 21 of the Constitution
of India. The learned counsel submitted that no purpose would be achieved by
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continuing the petitioner in custody. Apart from the above, the learned
counsel submitted that there are only statements obtained under section 50 of
the PMLA Act to prove the case against the petitioner and since those
statements are inadmissible, petitioner's custody ought not to be permitted to
be continued. The learned counsel further submitted that no material has been
adduced by the prosecution to indicate any connection for the petitioner with
the offence alleged and hence petitioner ought to be released on bail.
6. Sri. Jaisankar V. Nair, the learned Standing Counsel pointed out that
petitioner's earlier bail application B.A No.1032 of 2025 was dismissed on
merits by a learned Single Judge of this Court on 13.03.2025 and no change
of circumstances has been pointed out to consider this bail application. It was
also submitted that apart from the statements under section 50, there are
various materials indicating the petitioner's involvement in the crime and those
matters have already been considered by this Court in B.A No.1032 of 2025
and therefore a reconsideration is not warranted. Learned counsel further
pointed out that the rigour under section 45 of the PMLA Act will apply and
hence in the circumstances, the petitioner cannot be found to be not guilty of
the offences alleged.
7. I have considered the rival contentions.
8. Petitioner had earlier approached this Court in B.A No.1032 of 2025
and by judgment dated 13.03.2025, the said bail application was dismissed.
On a reading of the aforesaid order of dismissal, it is noticed that the learned
Single Judge had considered the merits of the matter, as rightly pointed by the
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learned Standing Counsel for the respondent. The following observations are
relevant in the context:
"16. A perusal of the same would show that, in addition to the
statements under Section 50 of Act 2002, there are materials against
the petitioners. I am not in a position to neglect the materials made
available by the prosecution. It cannot be said that there are only
statements under Section 50 of the Act 2002. Based on the above
materials mentioned above, I am not in a position to say that there are
reasonable grounds for believing that the accused are not guilty and
that they are not likely to commit any offences."
9. The above extracted portion of the order in B.A No.1032 of 2025, is
significant to the extent that the materials collected by the prosecution and
produced as part of the complaint was relied upon by the learned Single Judge
while dismissing petitioner's bail application. The only change of circumstance
pointed by the learned counsel for the petitioner was the filing of the
complaint, which, according to him, was not part of the earlier bail application.
However, as evident from the above extracted portion of the order in B.A
No.1032 of 2025, the learned Single Judge had relied upon the materials
collected and made part of the complaint as reasons to dismiss the bail
application.
10. As petitioner's bail application was dismissed only recently, that is,
hardly three weeks from the date of filing of this application, I am of the view
that there are no change of circumstances warranting a re-consideration. Since
a learned Single Judge of this Court has already found that there are sufficient
materials to come to a conclusion that the petitioner cannot be held to be not
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guilty, I am of the view that the petitioner cannot be released on bail.
Accordingly, this bail application is dismissed.
Sd/-
BECHU KURIAN THOMAS
JUDGE
vps
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APPENDIX OF BAIL APPL. 5521/2025
PETITIONER ANNEXURES
Annexure A1 TRUE COPY OF THE COMPLAINT FILED BY THE
ENFORCEMENT DIRECTORATE IN ECIR/KZSZO/01/2023
Annexure A2 A TRUE COPY OF THE ORDER DATED 13/03/2025 IN
Annexure A3 TRUE COPY OF JUDGMENT IN WRIT PETITION
(CRIMINAL) 1208/2023 DATED ON 21/11/2023
