PMLA bail granted where no prima facie link to proceeds of crime was shown and the accused's serious illness weighed heavily.

In a PMLA prosecution, regular bail was granted because the material did not prima facie establish that the accused, who was not named in the predicate FIR or final report, had derived or possessed proceeds of crime from a scheduled offence. The Court also noted that investigation had substantially progressed, the record had been seized, and further custody was not shown to be necessary for recovery or effective interrogation. The petitioner's serious medical conditions, including diabetes, obesity, liver cirrhosis and prior heart surgery, were treated as a significant factor supporting release on stringent conditions.

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Issues: Whether regular bail should be granted in a prosecution under the Prevention of Money Laundering Act, 2002, where the petitioner was not named in the predicate FIR or final report and the record did not clearly a nexus between any scheduled offence, proceeds of crime, and the alleged laundering, and whether the petitioner's serious medical condition warranted release.

Analysis: The petition arose from allegations of money-laundering linked to an earlier police case concerning illegal mining. The petitioner was neither named in the FIR nor shown as an accused in the final report. The material placed before the Court did not satisfactorily establish, at the bail stage, that the petitioner had derived or possessed proceeds of crime flowing from a scheduled offence so as to attract the offence of money-laundering. The Court also noted that the investigation had substantially progressed, the record had been seized, and the petitioner had remained in custody for over a month. Independent of the merits, the petitioner's serious ailments, including diabetes, obesity, liver cirrhosis and prior heart surgery, were treated as a significant factor under the bail jurisprudence applicable to a sick or infirm accused.

Conclusion: Bail was granted in favour of the petitioner.

Final Conclusion: The Court held that, on the facts presented at the bail stage, continued incarceration was not justified and the petitioner was entitled to release on stringent conditions.

Ratio Decidendi: In a money-laundering case, bail may be granted where the prosecution material does not prima facie establish a sufficient link between a scheduled offence and proceeds of crime, especially when the accused is medically vulnerable and custody is no longer required for recovery or effective interrogation.

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