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Synopsis

The Supreme Court has on July 29, 2024 granted bail to Humayun Suleman Merchant, a frontman of Iqbal Memon alias Iqbal Mirchi, a noted gangster and aide of international terrorist Dawood Ibrahim, in a money laundering case as he was more than 75 years of age and remained in judicial custody for four years and nine months.

A bench of Justices Sanjiv Khanna and Sanjay Kumar allowed the appeal by Humayun against the Bombay High Court's order of February 9, 2024 declining him bail.

"Having regard to the fact that the appellant, Humayun Suleman Merchant, is more than 75 years of age and has already suffered actual incarceration for four years and nine months, we accept the present appeal and direct that the appellant, Humayun Suleman Merchant, will be released on bail during the pendency of trial in connection with Supplementary Prosecution Complaint No. 150 of 2021 in ECIR/MBZO-01/08/2019 for the offence(s) punishable under Section 4 of the Prevention of Money Laundering Act, 2002, on terms and conditions to be fixed by the trial court," the bench ordered.

Merchant has been directed to surrender his passport and would not leave the country without permission from the trial court. "In case of non-compliance with the terms and conditions, it will be open to the trial court to cancel the bail," the bench added.

High Court's judgment has been set aside, after the top court's bench was informed of trial not moving ahead. Supreme Court has clarified that the observations made in this order are for the disposal of the present appeal and grant of bail will not be treated as an expression of opinion on the merits of the case.

The appellant was represented by Senior Advocate Sidharth Luthra and Advocate Zoheb Hussain appeared for the Enforcement Directorate.

Merchant has been alleged to play a very crucial role in brokering the illegal dealings of Iqbal Mirchi relation to high end properties in Mumbai and he aided and assisted him with full knowledge by layering and laundering the proceeds of crime, which he had garnered from the offences, which include the offences under the NDPS Act.

The appellant was arrested on October 22, 2019. In the impugned order, the High Court had noted the accusation faced by the appellant, alongwith the main accused Iqbal Mirchi was about layering and laundering of the money acquired by Iqbal Mirchi and its use in purchasing the three properties. 

"Since, the genesis of this money lies in the three offences registered at the instance of Anti Narcotic Cell in the year 1992, 1993 and 1994 respectively, and, hence, in my considered opinion, no case is made out for invocation of Section 436-A, as the punishment imposed in the subject complaint would be the one falling in Part II of Section 4 i.e. maximum punishment may extend up to ten years of rigorous imprisonment," the HC judge had said.

High Court had also held no case was made out by the applicant for exercise of power under Section 436-A on the ground that he has undergone one-half of the maximum punishment, which would be imposed upon him under the Act of 2002, if convicted.