Money-laundering bail denied where Section 45 conditions failed and investigation risk justified continued custody

Bail under the Prevention of Money Laundering Act, 2002 was refused because the statutory restrictions in Section 45 were not satisfied and the material disclosed a prima facie case of money-laundering. The Court treated economic offences as requiring a stricter bail approach and applied the test whether there were reasonable grounds to believe the accusation was supported by the record. On the enforcement material, it found a real apprehension that release could hamper the investigation and influence witnesses, so the petitioner was not entitled to bail at that stage.

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Issues: Whether the petitioner was entitled to bail in proceedings under the Prevention of Money Laundering Act, 2002.

Analysis: The application for bail was considered in the light of the statutory scheme of the Prevention of Money Laundering Act, 2002, particularly the definition of money-laundering, the presumption regarding proceeds of crime, the burden of proof, and the restrictive bail conditions under Section 45. The Court also applied the settled principle that economic offences stand on a different footing for bail, and that at the stage of bail it is sufficient to see whether there are reasonable grounds to believe that the accusation is supported by a prima facie case. On the material placed by the enforcement agency, the Court found a serious apprehension that release of the petitioner could hamper investigation and influence witnesses.

Conclusion: The petitioner was not entitled to bail at that stage, and the bail application was dismissed.

Ratio Decidendi: In prosecutions for money-laundering, bail may be refused where the statutory conditions under Section 45 are not satisfied and the material discloses a prima facie case with a real apprehension of interference with investigation or witnesses.

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