Ordinary bail principles govern PMLA bail after invalidation of twin conditions and amendment; fresh application was maintainable.

After the invalidation of the twin bail conditions under Section 45(1) of the Prevention of Money Laundering Act, 2002 and the subsequent amendment, a fresh bail application was maintainable. Applying ordinary bail principles, the Court treated liberty, the accused's conduct, and the risk of flight or interference with trial as the governing considerations. Bail was granted because the accused had cooperated in investigation, had not been arrested during investigation, no material showed tampering with evidence or influencing witnesses, custody had already continued for a substantial period, and the alleged laundering amount was below one crore rupees.

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Issues: Whether the third bail application was maintainable after the change in the law relating to bail under the Prevention of Money Laundering Act, 2002, and whether the petitioner was entitled to bail in the facts of the case.

Analysis: The earlier twin conditions in Section 45(1) of the Prevention of Money Laundering Act, 2002 had been declared unconstitutional, and the provision had also been amended to relax the bail conditions. In that changed legal position, the Court held that a fresh bail application was maintainable. On the merits, the Court applied the settled principle that bail is not to be withheld as punishment and that the primary inquiry is whether the accused is likely to appear for trial. The Court noted that the petitioner had cooperated in investigation, had not been arrested during investigation, had no material showing tampering with evidence or influencing witnesses, had already remained in custody for a substantial period, and the alleged laundering amount was below one crore rupees.

Conclusion: The petitioner was entitled to bail and the application was allowed.

Ratio Decidendi: After the invalidation of the twin bail conditions under Section 45(1) of the Prevention of Money Laundering Act, 2002 and the subsequent statutory amendment, bail must be assessed on ordinary bail principles, with due regard to liberty, the accused's conduct, and the risk of flight or interference with the trial.

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