PMLA bail restrictions control release where material suggests involvement in proceeds of crime and Section 45 conditions remain unmet.

Regular bail under the Prevention of Money Laundering Act was declined because the Court found the statutory twin conditions under Section 45 were not satisfied. On the material collected, including alleged diversion of loan funds, inflated turnover, fictitious stock declarations, Section 50 statements, and the petitioner's alleged role as an active participant and beneficiary of the proceeds of crime, the Court held that reasonable grounds were not made out to believe the petitioner was not guilty. Prolonged custody and trial delay were considered, but the Court held they could not override the PMLA bail restrictions. The petition for regular bail therefore failed on merits.

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Issues: Whether regular bail should be granted in a prosecution under the Prevention of Money Laundering Act, 2002 in view of the material collected during investigation and the period of custody already undergone.

Analysis: The application was assessed on the basis of the material indicating alleged diversion of loan funds, inflated turnover, fictitious stock declarations, statements recorded under Section 50 of the Prevention of Money Laundering Act, 2002, and the petitioner's alleged role as an active participant and beneficiary of the proceeds of crime. The Court also considered the argument that prolonged custody and delay in trial justified release, but held that such factors could not by themselves override the statutory restrictions governing bail in PMLA cases. On the material placed, the Court found that reasonable grounds were not made out to believe that the petitioner was not guilty of the offence.

Conclusion: Bail was declined because the statutory conditions for release under Section 45 of the Prevention of Money Laundering Act, 2002 were not satisfied.

Final Conclusion: The petition for regular bail failed on merits, and the petitioner remained in custody pending trial.

Ratio Decidendi: In a PMLA prosecution, bail cannot be granted unless the Court is satisfied that the twin conditions under Section 45 are met; prolonged incarceration or delay in trial, by itself, does not displace that statutory requirement.

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