PMLA bail threshold under stringent twin conditions defeated by prima facie laundering material and statutory presumptions.
In a PMLA bail matter, the High Court applied the stringent twin conditions under Section 45 and noted the statutory presumptions under Sections 23 and 24. Relying on the complaint in the scheduled offence and the material collected in the PMLA enquiry, including Section 50 statements, the Court found a prima facie role of the applicants in the alleged laundering activity. It was not satisfied that there were reasonable grounds to believe the applicants were not guilty or that they were unlikely to commit an offence while on bail, and the bail applications were rejected.
Issues: Whether the applicants were entitled to bail in a prosecution under the Prevention of Money Laundering Act, 2002.
Analysis: The complaint had already been filed in respect of the scheduled offence and the material collected in the PMLA enquiry, including statements recorded under Section 50 of the Act, disclosed a prima facie role of the applicants in the alleged laundering activity. The Court applied the stringent bail standard under Section 45 of the Prevention of Money Laundering Act, 2002 and noted the statutory presumptions under Sections 23 and 24 of that Act. On the record before it, the Court was not satisfied that there were reasonable grounds to believe that the applicants were not guilty of the offence or that they were unlikely to commit an offence while on bail.
Conclusion: Bail was not granted and the applications were rejected.
Final Conclusion: The prosecution material was found sufficient at the bail stage to justify continued custody under the special bail regime of the PMLA.
Ratio Decidendi: For offences under the Prevention of Money Laundering Act, 2002, bail can be granted only when the court is satisfied that the accused is not guilty and is unlikely to commit an offence while on bail; prima facie material showing involvement in laundering and possession of proceeds of crime justifies of bail.
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