PMLA bail requires satisfaction of the twin conditions; suspicion from financial transactions alone did not justify continued custody.

Bail was considered in a prosecution under the Prevention of Money-laundering Act, 2002, where suspicious transfers, cash deposits, search recoveries and recorded statements created suspicion but did not, at the bail stage, establish guilt. The Court held that a petition under Section 439 of the Code of Criminal Procedure was maintainable through Section 65 of the PMLA and applied Section 45(1) to find reasonable grounds that the accused was not guilty and was not likely to commit an offence while on bail. With no criminal antecedents shown and no further custody needed beyond securing attendance at trial, bail was granted on conditions.

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Issues: Whether the petitioner was entitled to bail in a prosecution under the Prevention of Money-laundering Act, 2002, and whether the statutory conditions governing bail were satisfied.

Analysis: The materials disclosed suspicious and unusual financial dealings, including transfers to the account of the co-accused, cash deposits, search recoveries and statements recorded during investigation. However, the Court held that these circumstances, at the bail stage, created suspicion but did not by themselves establish guilt. The Court noted that the petitioner was not shown to have criminal antecedents and that further custody was not required for any purpose other than securing his presence at trial. It also held that the petition under Section 439 of the Code of Criminal Procedure, 1973 was maintainable in view of Section 65 of the Prevention of Money-laundering Act, 2002. Applying Section 45(1) of the Prevention of Money-laundering Act, 2002, the Court found reasonable grounds to believe that the petitioner was not guilty of the offence and was not likely to commit any offence while on bail.

Conclusion: The petitioner was entitled to bail.

Final Conclusion: The application for bail was allowed on conditions, as the Court found that continued custody was not justified at that stage.

Ratio Decidendi: At the bail stage under the Prevention of Money-laundering Act, 2002, mere suspicion from financial transactions and statements is insufficient to deny bail unless the Court is satisfied that the statutory twin conditions are not met.

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