PMLA bail and personal liberty: prolonged pretrial custody justified regular bail where trial had not commenced.

In a PMLA bail context, the Court treated the statutory restrictions under Section 45 alongside Article 21 and held that prolonged incarceration, the filing of the complaint, the absence of trial commencement, and the earlier setting aside of the cognizance order justified regular bail. It noted that the applicant had remained in custody for about one year, the maximum sentence was seven years, and the intervening detention was not consistent with Section 309(2) CrPC. On those facts, the Court found that continued custody could not substitute for trial and that the constitutional requirement of reasonable procedure prevailed.

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Issues: Whether the applicant, facing prosecution under the Prevention of Money Laundering Act, 2002, was entitled to regular bail in view of long incarceration, the stage of the proceedings, and the effect of the earlier setting aside of the cognizance order.

Analysis: The application was examined in the setting of the twin conditions under Section 45 of the Prevention of Money Laundering Act, 2002 and the constitutional guarantee of personal liberty under Article 21 of the Constitution of India. The Court noted that the applicant had remained in custody for about one year, the complaint had already been filed, the trial had not commenced, and the maximum punishment was seven years. It further considered that the earlier cognizance order had been set aside and the intervening detention period was not in accordance with Section 309(2) of the Code of Criminal Procedure, 1973. Relying on the principles that prolonged incarceration cannot be used as a substitute for trial and that continued custody must be justified by the progress of the proceedings, the Court concluded that the rigour of Section 45 yielded to the constitutional requirement of reasonable procedure in the facts of the case.

Conclusion: The applicant was held entitled to regular bail.

Ratio Decidendi: In a money-laundering prosecution, the statutory restrictions on bail do not operate as an absolute bar where the accused has undergone prolonged incarceration, the trial has not begun within a reasonable time, and continued custody is inconsistent with the constitutional protection of personal liberty.

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