PMLA bail and prolonged custody: Delhi HC applied Article 21 and granted regular bail despite Section 45 rigour.

In a PMLA bail matter, the Delhi HC applied Article 21 and the principle that bail is the rule and jail the exception, while considering the twin conditions under Section 45. It noted that the investigation was complete, the complaint had been filed, the allegations were supported mainly by documentary material, diary entries and alleged bank transactions, and the applicant had been in custody for about two and a half years. As the applicant had deep roots in society, was not shown to be a flight risk, and release was unlikely to affect the evidence, the statutory rigour did not justify continued pre-trial incarceration. Regular bail was granted, subject to conditions.

---

---

Issues: Whether the applicant was entitled to regular bail in a prosecution under the Prevention of Money Laundering Act, 2002, having regard to the twin conditions under Section 45, the nature of the allegations, the stage of the proceedings, the period of custody, and the risk of absconding or tampering with evidence.

Analysis: The application was examined on the touchstone of personal liberty under Article 21, the principle that bail is the rule and jail is the exception, and the special rigour of Section 45 of the Prevention of Money Laundering Act, 2002. The allegations were that the applicant had facilitated cattle smuggling for monetary gain and that the material against him largely consisted of documentary evidence, diary entries, and alleged bank transactions. The investigation was complete, the complaint had been filed, and the applicant had remained in custody for about two and a half years. The Court also noted that the applicant had deep roots in society, was not shown to be a flight risk, and the evidence was not of a kind likely to be affected by his release. In these circumstances, the statutory bar did not outweigh the constitutional concern against prolonged pre-trial incarceration.

Conclusion: The applicant satisfied the requirements for grant of bail and was admitted to regular bail.

Final Conclusion: The decision grants liberty to the applicant pending trial, subject to conditions, on the basis that continued incarceration was not warranted on the facts presented.

Ratio Decidendi: Even in proceedings under the Prevention of Money Laundering Act, 2002, the twin conditions for bail do not operate mechanically where the investigation is complete, custody has become prolonged, and the material does not show a substantial risk of absconding or tampering with evidence.

---