PMLA bail must be decided on ordinary merits after Section 45 twin conditions are struck down, considering custody and trial delay.

After the twin conditions under Section 45 of the PMLA were struck down, bail in a money-laundering case had to be assessed on ordinary merits. The Court considered that the evidence was largely documentary, statements had been recorded, the petitioners had undergone custody, and the trial was moving slowly; on that basis, regular bail was granted. It also noted that depositing demonetized currency in one's own account was not, by itself, an offence under the notification and that the predicate case had proceeded without arrest.

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Issues: Whether the petitioners were entitled to regular bail in the PMLA proceedings after the twin conditions under Section 45 of the Act had been struck down and in view of the nature of the evidence and stage of trial.

Analysis: The complaint arose out of alleged conversion of demonetized currency into monetized currency through bank accounts, demand drafts and alleged commission arrangements. The Court noted that deposit of demonetized currency in a person's own account was not itself an offence under the notification and that the predicate proceedings had proceeded without arrest in the scheduled offence case. It further noted that the earlier rejection of bail had been materially affected by the twin conditions under Section 45 of the Prevention of Money Laundering Act, 2002, which were subsequently declared unconstitutional, requiring reconsideration of bail on merits. The Court also took into account the period of custody, the documentary nature of the evidence, the recording of statements and the slow progress of the trial.

Conclusion: Bail was granted to the petitioners.

Ratio Decidendi: After the unconstitutional twin conditions under Section 45 of the Prevention of Money Laundering Act, 2002 ceased to apply, bail in a PMLA case had to be assessed on ordinary merits, including the nature of the evidence, custody already undergone and the likely delay in trial.

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