2018 (6) TMI 1640 - HC - Money Laundering

Court grants bail in PMLA case; clarifies amendment impact.

The court granted bail to accused No.2 in PMLA Case No.2/2016 under Section 439 of CrPC. The court clarified that the amendment to Section 45(1) of the ... Money Laundering - Grant of Bail - Section 45(1) of the PMLA Act - HELD THAT:- After effecting amendment to Section 45(1) of the PMLA Act the words “under this Act” are added to Sub Section (1) of Section 45 of the PMLA Act. However, the original Section 45(1)(ii) has not been revived or resurrected by the said Amending Act. The learned counsel appearing for the applicant and the learned Additional Solicitor General of India are not disputing about the said fact situation and in fact have conceded to the same. It is further to be noted here that, even Notification dated 29.3.2018 thereby amending Section 45(1) of the PMLA Act which came into effect from 19.4.2018, is silent about its retrospective applicability. The original Subsection 45(1)(ii) has therefore neither revived nor resurrected by the Amending Act and therefore, as of today there is no rigor of said two further conditions under original Section 45(1)(ii) of PMLA Act for releasing the accused on bail under the said Act - when there is no bar of twin conditions contained in original Section 45(1)(ii) of the PMLA Act, the present application has to be considered and decided under Section 439 of the Code of Criminal Procedure with or without conditions. The applicant is on bail in the two scheduled offences. The maximum punishment for an offence under PMLA Act is seven years. The applicant in the present crime has been arrested on 1.2.2016 and till today he has already under gone more than one third of the total imprisonment as an under trial prisoner - the applicant is entitled to be released on bail subject to conditions imposed. Issues:1. Bail application under Section 439 of the Code of Criminal Procedure for accused in PMLA Case.2. Interpretation of Section 45 of the Prevention of Money Laundering Act, 2002.3. Consideration of bail based on parity with co-accused.4. Application of bail conditions.Issue 1: Bail Application under Section 439 of CrPCThe judgment pertains to a bail application under Section 439 of the Code of Criminal Procedure by accused No.2 in PMLA Case No.2/2016 for offenses under the Prevention of Money Laundering Act, 2002. The accused had been previously released on bail in other related cases by the trial court.Issue 2: Interpretation of Section 45 of PMLA ActThe Additional Solicitor General argued that an amendment to Section 45(1) of the PMLA Act, effective from 19.4.2018, reinstated the conditions for bail that were earlier struck down by the Supreme Court. However, the court noted that the amendment did not revive the original conditions, and as of the present, there were no additional conditions for granting bail under the PMLA Act.Issue 3: Consideration of Bail Based on ParityThe defense counsel argued for the accused's bail based on parity with the principal accused who had been granted bail earlier. The court found that the accused played a similar role to the principal accused and was entitled to bail on the grounds of parity, especially since all other accused persons were already out on bail.Issue 4: Application of Bail ConditionsThe court granted bail to the applicant in Special PMLA Case No.2 of 2016 with specific conditions, including executing a PR bond, providing sureties, surrendering passport, attending court dates, and not tampering with evidence or pressurizing witnesses. The applicant was directed to comply with these conditions to maintain the bail granted.In conclusion, the judgment analyzed the bail application under various legal provisions, including the interpretation of Section 45 of the PMLA Act, consideration of parity with co-accused, and imposition of specific bail conditions to ensure compliance and prevent interference with the legal process.