PMLA bail granted where prima facie material was insufficient to justify continued custody under statutory restrictions

Bail was granted in a prosecution under the Prevention of Money Laundering Act, 2002, because the court found the material then on record insufficient to justify continued custody under the statutory bail restrictions. Although the complaint and arrest materials alleged collection of investor funds through a partnership firm, use of the amounts to acquire immovable properties, and involvement in the scheduled offence under Section 420 IPC, the court held that the record did not disclose adequate prima facie support to refuse bail at that stage. The absence of completed charge-sheet and other supporting material weighed against continued detention, and bail was allowed with conditions.

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Issues: Whether the petitioner was entitled to be enlarged on bail in a prosecution under the Prevention of Money Laundering Act, 2002.

Analysis: The complaint and arrest materials alleged collection of large sums from investors through the partnership firm, use of the collected amounts in acquiring immovable properties, and involvement in the scheduled offence under Section 420 of the Indian Penal Code, 1860. The defence relied on the absence of completed charge-sheet, absence of proved victims, lack of attached or frozen proceeds of crime, and the requirement that arrest and continued custody must be justified by lawful material. The decision turned on whether, at the bail stage, the record disclosed sufficient prima facie material to satisfy the statutory threshold under the Prevention of Money Laundering Act, 2002, including the bar on bail and the presumption provisions, or whether continued detention would be unwarranted in the absence of adequate supporting material.

Conclusion: The petitioner was held entitled to bail, as the material then on record was found insufficient to justify continued custody under the statutory bail restrictions.

Final Conclusion: Bail was granted with conditions, reflecting a finding that the statutory threshold for refusal of bail was not established on the material available at that stage.

Ratio Decidendi: In a prosecution under the Prevention of Money Laundering Act, 2002, bail cannot be refused unless the record discloses sufficient prima facie material to justify the statutory restriction and the court is not satisfied that custody is unnecessary pending further investigation.

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