PMLA bail restrictions under Section 45 applied as prima facie material failed to satisfy the twin conditions.

In prosecutions under the Prevention of Money Laundering Act, regular bail remains controlled by the Section 45 twin conditions, requiring reasonable grounds to believe that the accused is not guilty and is not likely to commit an offence while on bail. On the prima facie material, including documentary records and witness statements linked to alleged laundering of duty drawback proceeds through inflated export invoicing and banking and cash transactions, the Court found those conditions unmet. Bail was refused and the application dismissed.

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Issues: Whether regular bail should be granted in a prosecution under the Prevention of Money Laundering Act, 2002 in the face of the statutory bail restrictions under Section 45 and the prima facie material alleging laundering of duty drawback proceeds.

Analysis: The application arose from allegations that the applicant had orchestrated inflated export invoicing, claimed excess duty drawback, and converted the alleged proceeds of crime through banking channels and cash transactions. The Court noted that the Directorate had already filed a complaint and cognizance had been taken in the scheduled offence, and that documentary material and witness statements, including statements under Section 50 of the Prevention of Money Laundering Act, 2002, supported the allegations. The Court further held that, after the 2018 amendment, the twin conditions under Section 45 of the Prevention of Money Laundering Act, 2002 continued to govern bail, requiring reasonable grounds to believe that the accused is not guilty and is not likely to commit an offence while on bail. On a prima facie assessment, the Court found that those conditions were not satisfied.

Conclusion: Bail was refused and the application was dismissed.

Final Conclusion: The decision reaffirms that in money-laundering cases the statutory embargo on bail remains operative and liberty considerations yield where the material does not justify a conclusion of non-guilt at the threshold.

Ratio Decidendi: In prosecutions under the Prevention of Money Laundering Act, 2002, regular bail cannot be granted unless the court is satisfied, on a prima facie assessment, that the twin conditions under Section 45 are met.

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