PMLA bail restrictions under Section 45 applied where records indicated routing of proceeds of crime through forged accounts.

Regular bail under the Prevention of Money Laundering Act, 2002 was examined against the statutory restrictions in Section 45. The material was said to show creation of fictitious bank accounts, use of forged documents, and routing of proceeds of crime through shell entities. The Court noted that money-laundering is treated as a continuing activity, that the special law has overriding effect, and that bail requires satisfaction of the twin conditions that the accused is not guilty and is unlikely to reoffend while on bail. On the record before it, including investigation material and inquiry statements, the Court found no basis for such satisfaction and rejected the bail request.

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Issues: Whether the petitioner was entitled to regular bail under the Prevention of Money Laundering Act, 2002 in view of the statutory restrictions under Section 45 and the material showing involvement in laundering proceeds of crime.

Analysis: The application arose from allegations that the petitioner created fictitious bank accounts, used forged documents, and provided those accounts for routing funds derived from a scheduled offence. The statutory scheme of the Prevention of Money Laundering Act, 2002 treats proceeds of crime broadly, recognises money-laundering as a continuing activity, and gives overriding effect to the special law. In such cases, bail cannot be granted unless the court is satisfied that there are reasonable grounds for believing that the accused is not guilty of the offence and is not likely to commit any offence while on bail. The material placed before the Court, including investigation findings and statements recorded during inquiry, indicated direct involvement of the petitioner in the process of laundering and routing funds through shell entities and forged accounts. In view of the seriousness of the allegations and the statutory twin conditions, the Court found no basis to record satisfaction in favour of release on bail.

Conclusion: The petitioner was not entitled to bail and the prayer was rejected.

Ratio Decidendi: In a prosecution under the Prevention of Money Laundering Act, 2002, regular bail cannot be granted unless the twin conditions in Section 45 are satisfied on a prima facie appraisal of material, and where the record indicates direct involvement in the process or activity connected with proceeds of crime, release on bail is barred.

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