PMLA bail and Section 45 twin conditions defeated where prima facie material showed involvement in laundering proceeds of crime.

Under the Prevention of Money Laundering Act, 2002, regular bail depends on the mandatory twin conditions in Section 45, read with the statutory presumption in Section 24 and the special statute's overriding effect. On the prima facie material, including Section 50 statements, search-and-seizure results, routing of funds through relatives' and intermediaries' accounts, and alleged acquisition and projection of assets as untainted property, the Court treated the record as showing direct involvement in handling proceeds of crime. Bail was refused because the petitioner failed to show reasonable grounds for believing he was not guilty or that he would not reoffend, and completion of investigation or absence from the predicate FIR did not by itself justify release.

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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 rigour of Section 45 and the prima facie material indicating involvement in the laundering of proceeds of crime.

Analysis: The bail request was examined against the mandatory twin conditions under Section 45 of the Prevention of Money Laundering Act, 2002, along with the statutory presumption under Section 24 and the overriding effect of the special statute. The material relied upon included statements recorded under Section 50, search and seizure results, routing of funds through bank accounts of family members and intermediaries, and the alleged acquisition and projection of immovable and movable assets as untainted property. The Court treated the offence as one involving direct involvement in acquisition, possession, concealment, use and projection of proceeds of crime, and held that the prosecution material disclosed a prima facie case. The contention that the petitioner was not named in the predicate FIR and that filing of the charge-sheet warranted bail was rejected, as money-laundering was treated as an independent offence and completion of investigation was held not to dilute the allegations.

Conclusion: The petitioner failed to satisfy the requirement of reasonable grounds for believing that he was not guilty of the offence or that he would not commit an offence while on bail. Bail was therefore not warranted.

Ratio Decidendi: In bail matters under the Prevention of Money Laundering Act, 2002, the court must apply the mandatory twin conditions under Section 45 on the basis of prima facie material, and where the record shows direct involvement in the process of handling proceeds of crime, regular bail cannot be granted merely because investigation has been completed or the accused was not named in the predicate FIR.

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