Interim bail in money laundering proceedings may be granted with strict safeguards to protect the investigation and prevent tampering.

Interim bail in a money laundering writ proceeding may be granted despite the special restrictions under Section 45 of the PMLA and the reverse burden under Section 24 where the Court is satisfied that appropriate safeguards can secure the petitioners' attendance and protect the investigation. Concern about the seriousness of economic offences and the possibility of creating a fresh paper trail did not prevent release, because the Court imposed detailed conditions to prevent tampering, regulate travel, communication and business dealings, and ensure cooperation with the investigating agency. Interim release was therefore allowed subject to strict terms.

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Issues: Whether interim bail should be granted to the petitioners during the pendency of the writ petitions under the Prevention of Money Laundering Act, 2002, and if so, on what terms.

Analysis: The applications were opposed on the basis of the special bail restrictions under Section 45 of the Prevention of Money Laundering Act, 2002, the seriousness of the alleged economic offences, and the contention that a fresh paper trail could be created if the petitioners were enlarged on bail. The competing submissions also referred to the reverse burden under Section 24 of the Act and the nature of economic offences. After considering these aspects, the Court found it appropriate to enlarge the petitioners on bail during the pendency of the petitions, subject to detailed safeguards to secure their presence, prevent interference with the investigation, and regulate travel, communication, and business dealings.

Conclusion: Interim bail was granted to the petitioners subject to the conditions imposed by the Court.

Final Conclusion: The petitions were allowed for interim release, with strict conditions designed to protect the investigation and ensure cooperation with the investigating agency.

Ratio Decidendi: Interim bail may be granted in a money laundering matter during pendency of proceedings where the Court imposes conditions adequate to secure attendance, prevent tampering, and protect the investigation.

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