PMLA bail under Section 45 turns on twin conditions, statutory burden, and risk factors in custody assessment

The article examines regular bail in a prosecution under the Prevention of Money Laundering Act, 2002, focusing on the effect of Section 45, its proviso, and the post-amendment bail framework. It discusses the relevance of the earlier striking down of the twin conditions, the statutory burden under Section 24, and the character of the alleged proceeds of crime, including the distinction between amounts linked to government agencies and private transactions. It also notes that documentary material was already collected, further custodial interrogation was said to be unnecessary, and there was no serious material showing flight risk, tampering with evidence, or witness influence.

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Issues: Whether regular bail should be granted in a prosecution under the Prevention of Money Laundering Act, 2002 in the face of the bail restrictions under Section 45, and whether the proviso to that section and the surrounding facts justified release on bail.

Analysis: The Court noted the competing views on the post-amendment position of Section 45 of the Prevention of Money Laundering Act, 2002 and treated the earlier striking down of the twin conditions as materially relevant to the bail enquiry. It further considered the statutory burden under Section 24 and the nature of the alleged proceeds of crime, including the distinction drawn between the amount attributed to government agencies and the amount said to arise from private transactions. The Court also took into account that documentary material had already been collected, the applicant had been in custody for a substantial period, further custodial interrogation was unnecessary, and there was no serious material suggesting flight risk, tampering with evidence, or influencing witnesses. The Court additionally relied on the proviso to Section 45 and the limited quantum attributed to the government-side loss.

Conclusion: Regular bail was granted to the applicant.

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