PMLA regular bail on broad probabilities: Court found Section 45 conditions satisfied despite pending predicate-offence link

In a PMLA regular bail plea, the Court applied the twin conditions under Section 45 on broad probabilities and without conducting a mini-trial. It held that pardon in the predicate offence did not amount to absolute absolution in the money-laundering case, because PMLA liability remains independent while still linked to the scheduled offence and proceeds of crime. On the material then available, the applicant was not shown to be a key managerial person or part of day-to-day management, and his alleged role and knowledge that the funds were proceeds of crime were not conclusively established at the bail stage. Bail was granted, taking into account parity, non-arrest of similarly placed persons, filing of the complaint, and custody already undergone.

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Issues: Whether the applicant was entitled to regular bail under Section 45 of the Prevention of Money Laundering Act, 2002, having regard to his status as an approver in the predicate offence, the material placed against him, and the nature of his alleged role in the laundering transactions.

Analysis: The application was examined on the basis that the offence under the Prevention of Money Laundering Act, 2002 is independent, but its existence depends upon the continuing existence of the scheduled offence and proceeds of crime. Grant of pardon in the predicate offence was held not to amount to an absolute absolution for the purposes of the money-laundering case. At the stage of bail, the Court was required to assess broad probabilities and the twin conditions under Section 45, without conducting a mini-trial or finally adjudicating credibility. The material relied upon by the prosecution showed that the applicant was not a key managerial person or part of the day-to-day management of the company, and his role was projected mainly through statements recorded during investigation. Those statements indicated that he acted on instructions and on commission basis, while the question whether he had the requisite knowledge that the funds were proceeds of crime could not be conclusively presumed at that stage. The Court also took note of parity considerations, the non-arrest of similarly placed persons, the filing of the complaint, and the length of incarceration already undergone.

Conclusion: The twin conditions under Section 45 were held to be satisfied for the purpose of bail, and the applicant was found entitled to be released on regular bail.

Ratio Decidendi: In a bail plea under the Prevention of Money Laundering Act, 2002, the Court may grant bail on broad probabilities where the material does not presently establish the requisite knowledge and role in laundering, even though the offence is independent and the scheduled offence continues to exist.

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