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        Money Laundering

        2022 (1) TMI 320 - HC - Money Laundering

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        PMLA bail under the triple test applies where section 45 twin conditions are inapplicable and no witness interference is shown. In a PMLA bail context, the discussion notes that where the alleged predicate offences were under the Official Secrets Act and allied IPC provisions, and ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          PMLA bail under the triple test applies where section 45 twin conditions are inapplicable and no witness interference is shown.

                          In a PMLA bail context, the discussion notes that where the alleged predicate offences were under the Official Secrets Act and allied IPC provisions, and the projected proceeds of crime were below one crore rupees, the ordinary bail principles applied. It states that the twin conditions under section 45 were not revived by the later amendment, so bail had to be assessed on the triple test of flight risk, tampering with evidence, and influencing witnesses. On the stated facts, the accused's local roots, repeated cooperation with investigation, and absence of material showing interference with the case were treated as supporting grant of bail.




                          Issues: Whether bail should be granted in a prosecution under the Prevention of Money Laundering Act, 2002, having regard to the applicability of the twin conditions under section 45, the nature of the predicate allegations, and the triple test of flight risk, tampering with evidence, and influencing witnesses.

                          Analysis: The allegations rested on a complaint under the Prevention of Money Laundering Act, 2002 linked to predicate allegations under the Official Secrets Act, 1923 and allied accusations under the Indian Penal Code, 1860. The Court noted that offences under the Official Secrets Act, 1923 are not scheduled offences under the money-laundering statute, and that the projected proceeds of crime were below one crore rupees. It further held that the twin conditions under section 45, as earlier struck down, were not revived by the subsequent amendment, so bail had to be tested on the triple-test framework. On the facts, the petitioner was an Indian citizen with roots in society, had already joined investigation on multiple occasions, and there was no material showing tampering with evidence or influencing witnesses; custody had also continued for a substantial period.

                          Conclusion: Bail was held to be justified and was granted to the petitioner.

                          Ratio Decidendi: Where the twin conditions under section 45 of the Prevention of Money Laundering Act, 2002 are inapplicable, bail is to be decided on the ordinary triple test, and bail may be granted when the accused is not shown to be a flight risk and there is no material of tampering with evidence or influencing witnesses.


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