Leena Paulose Gets Bail in PMLA Case, Denied Under MCOCA

The High Court on Tuesday denied bail to Leena Paulose, wife of alleged conman Sukesh Chandrashekhar, in the Rs 200 crore extortion case registered under the Maharashtra Control of Organised Crime Act (MCOCA), while granting her bail in a connected money laundering case investigated by the Enforcement Directorate (ED). Justice Prateek Jalan held that the allegations against Paulose in the organised crime case disclosed her active and significant involvement in the alleged syndicate.

“I have rejected the application in the MCOCA case but allowed it in the ED case,” the Court observed while pronouncing the verdict. The case arose from allegations that Sukesh Chandrashekhar, by impersonating a senior officer in the Ministry of Law, contacted the complainant and promised assistance in securing bail for her husband, who was in judicial custody in matters linked to Religare Enterprises Ltd. The prosecution alleged that Chandrashekhar and his associates extorted nearly Rs. 214 crore from the complainant through multiple transactions.

During the investigation, the authorities alleged that Sukesh Chandrashekhar and Leena Paulose had been operating an organised crime syndicate since 2013 for pecuniary gain through cheating, impersonation, and extortion. The prosecution further claimed that Chandrashekhar was involved in several criminal cases relating to attempted murder, cheating, extortion, and criminal intimidation.

Before the High Court, Paulose sought bail in both the MCOCA case and the money laundering proceedings initiated by the ED. While refusing bail in the organised crime case, the court observed that the material on record prima facie indicated that Paulose played a “pivotal role” in the functioning of the syndicate.

The Court observed that Paulose allegedly controlled the syndicate during Sukesh Chandrashekhar’s judicial custody and was responsible for recharging the mobile phone and facilitating the use of the “Silent Calling App”, which was allegedly central to the commission of the offence.

The High Court further noted that allegations regarding the use of extorted funds for maintaining a lavish lifestyle and investments in proprietary businesses also pointed towards her involvement as an important member of the alleged organised crime syndicate.

However, in the ED case, the Court granted bail to Paulose after taking note of the fact that she had joined the investigation before her arrest. The Court also considered the non-applicability of the stringent twin conditions under Section 45 of the Prevention of Money Laundering Act (PMLA) and granted her the benefit of parity with similarly placed co-accused who had already been enlarged on bail.