Mandatory PMLA bail restrictions apply despite general bail power, and knowing assistance in laundering can attract liability.

The note explains that in money laundering prosecutions under the Prevention of Money Laundering Act, bail is subject to the mandatory restrictions in Section 45, which operate notwithstanding the general bail power under Section 439 CrPC. It also states that liability under Section 3 is not limited to the person who committed the scheduled offence; a person who knowingly assists, participates in, or is involved in concealment, possession, use, or projection of proceeds of crime may fall within the provision. The text further notes that Sections 65 and 71 give the PMLA overriding effect, and that a prima facie finding of involvement may justify denial of regular bail.

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Issues: Whether the petitioner was entitled to regular bail in a prosecution under the Prevention of Money Laundering Act, 2002, and whether the rigours of Section 45 of that Act applied notwithstanding the general power of bail under Section 439 of the Code of Criminal Procedure, 1973.

Analysis: The allegations related to laundering of proceeds of crime generated from a scheduled offence under the Prevention of Corruption Act, 1988. The Court held that the offence of money laundering under Section 3 of the Prevention of Money Laundering Act, 2002 is not confined to the person who originally committed the scheduled offence, and that a person who knowingly assists, is a party to, or is involved in concealment, possession, use or projection of proceeds of crime may also fall within its sweep. The Court further held that Section 45 imposes mandatory bail restrictions and has overriding effect by virtue of Sections 65 and 71 of the Prevention of Money Laundering Act, 2002. The prima facie finding of involvement recorded by the Special Judge was found to be justified, and the petitioner's reliance on contrary decisions was rejected as inapplicable on the facts.

Conclusion: The petitioner was not entitled to bail, and the application was rejected.

Ratio Decidendi: In a prosecution under the Prevention of Money Laundering Act, 2002, bail must satisfy the mandatory conditions in Section 45, and a person need not himself commit the scheduled offence if the material shows knowing assistance in laundering its proceeds.

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