PMLA bail and twin conditions: prima facie laundering material justified refusal of regular bail.

Regular bail under the Prevention of Money Laundering Act depends on satisfaction of the twin conditions in Section 45: reasonable grounds to believe the accused is not guilty and is not likely to commit any offence while on bail. At the bail stage, seized diary entries, sale agreements, bank statements, and Section 50 statements were treated as sufficient prima facie material linking the applicants to laundering through immovable properties, including acquisition, concealment, and projection of proceeds of crime as untainted. The applicant's conduct in relation to interim bail was also viewed as doubtful, and the risk of misuse of liberty, tampering with evidence, and influencing witnesses was considered relevant to refusal of bail.

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Issues: Whether the applicants were entitled to regular bail in a prosecution under the Prevention of Money Laundering Act, 2005 in light of the twin conditions under Section 45.

Analysis: The allegations disclosed a laundering transaction involving immovable properties, with material such as seized diary entries, sale agreements, bank statements, and statements recorded under Section 50 of the Prevention of Money Laundering Act, 2005. The Court treated this material as sufficient at the bail stage to form a prima facie view that the cash component represented proceeds of crime and that the applicants were connected with the acquisition, concealment, and projection of such proceeds as untainted. The Court also relied on the statutory mandate that bail can be granted only if there are reasonable grounds for believing that the accused is not guilty and is not likely to commit any offence while on bail. In addition, the Court found the conduct of one applicant in relation to interim bail to be doubtful and considered that release could lead to misuse of liberty, tampering with evidence, or influencing witnesses.

Conclusion: The applicants did not satisfy the twin conditions under Section 45 of the Prevention of Money Laundering Act, 2005, and regular bail was declined.

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