Scheduled offence link is essential before applying money-laundering bail restrictions; regular bail granted under ordinary principles

Where the accused was not shown to be charged with a scheduled offence, the stringent bail restrictions under the money-laundering statute were held inapplicable. The alleged cricket betting activity, by itself, was treated as insufficient to attract the restrictive bail regime, and the absence of material linking the allegations to the earlier proceedings meant the case did not fall within Section 45(1). Bail was therefore considered under the ordinary principles of Section 439 of the Code of Criminal Procedure, and regular bail was granted on conditions.

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Issues: Whether the applicant, not being charged with any scheduled offence under the Prevention of Money Laundering Act, 2002, could be denied bail by applying the restrictions in Section 45 of that Act, and whether bail should be granted under Section 439 of the Code of Criminal Procedure, 1973.

Analysis: The complaint alleged offences under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, but the applicant was not shown to be an accused in the predicate scheduled offence. On the materials considered, the alleged involvement was in cricket betting activity, which by itself was treated as not constituting a scheduled offence. In that view, the statutory requirement in Section 45(1) of the Act, which restricts bail for persons accused of an offence punishable under Part A of the Schedule, was held inapplicable. The burden of proof under Section 24 was also considered to relate to proceeds of crime in the context of a scheduled offence, and the Court found the respondent had not produced material showing a sufficient link between the present allegations and the earlier Mumbai proceedings so as to bring the case within the stricter bail regime.

Conclusion: Section 45(1) was held not to apply, and the applicant was entitled to consideration of bail under the ordinary principles under Section 439 of the Code of Criminal Procedure, 1973. Bail was granted.

Final Conclusion: The decision grants regular bail to the applicant on conditions, treating the matter as one outside the restrictive bail bar under the money-laundering statute.

Ratio Decidendi: Where the accused is not shown to be charged with a scheduled offence, the stringent bail conditions under Section 45 of the Prevention of Money Laundering Act, 2002 do not apply, and bail is to be considered under the ordinary principles governing bail.

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