PMLA bail twin conditions applied with recorded statements and corroboration supporting refusal of regular bail

Bail under the Prevention of Money Laundering Act is governed by the twin conditions in section 45, requiring reasonable grounds to believe that the accused is not guilty and is unlikely to offend while on bail. The material considered at the bail stage included approver and witness statements, along with call-detail and location records, and such section 50 statements were treated as admissible and capable of reliance. The text also states that an accused need not be named in the scheduled offence for PMLA prosecution because money-laundering is an independent offence linked to proceeds of crime. The approver's statement could not be rejected at the threshold, as credibility and corroboration were matters for trial.

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Issues: Whether the applicant was entitled to regular bail under the Prevention of Money Laundering Act, 2002 in light of the statutory twin conditions, the evidentiary value of statements recorded under section 50, and the approver's statement.

Analysis: Bail in a money-laundering case is controlled by section 45 of the Prevention of Money Laundering Act, 2002, which requires the Court to be satisfied that there are reasonable grounds for believing that the accused is not guilty and is not likely to commit any offence while on bail. The material placed before the Court included statements of the approver and other witnesses recorded under section 50 of the Prevention of Money Laundering Act, 2002, together with corroborative call-detail and location records. The Court held that statements under section 50 are admissible and can be relied upon at the bail stage. It further held that an accused need not be named in the scheduled offence for prosecution under the Prevention of Money Laundering Act, 2002, because money-laundering is an independent offence connected with proceeds of crime. The Court also found that the approver's statement could not be discarded at the threshold, as its credibility and corroboration were matters for trial, especially where there was additional supporting material.

Conclusion: The applicant failed to satisfy the twin conditions for bail and the application was not allowed.

Ratio Decidendi: In a prosecution under the Prevention of Money Laundering Act, 2002, bail cannot be granted unless the Court is satisfied, on the basis of material collected during investigation, that there are reasonable grounds for believing the accused is not guilty and will not commit any offence on bail; admissible section 50 statements and corroborative material may be relied upon at the bail stage.

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