Bail granted in PMLA before framing of charges where maximum sentence is seven years; release on terms within seven days.

SC granted bail in a PMLA proceeding where charges had not yet been framed and trial had not commenced. Noting the maximum PMLA sentence of seven years, the Court held the case fit for bail and directed production before the Special Court within seven days, which shall release the petitioner on appropriate terms and conditions. The special leave petition was disposed of.

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Issues: Whether petitioners detained in cases registered under the Prevention of Money Laundering Act, 2002, where charges have not been framed and trial has not commenced, and who have undergone prolonged pre-trial incarceration relative to the maximum sentence prescribed under PMLA, are entitled to be enlarged on bail.

Analysis: The petitions concern accused persons detained in connection with predicate offences and thereafter prosecuted under the Prevention of Money Laundering Act, 2002; in each matter charges remain unframed and trial has not commenced. The detention period in custody is lengthy in relation to the statutory maximum sentence under PMLA (seven years). Having regard to the extended period of pre-trial detention, absence of framing of charges, and the limited maximum punishment under the statute, the balance of liberty and the circumstances of incarceration favour grant of bail in the PMLA proceedings. The petitions were considered on these factual and legal aspects and identical relief was found appropriate in each case.

Conclusion: Petitioners are entitled to be enlarged on bail in respect of the PMLA prosecutions; each petitioner shall be produced before the Special Court within seven days and released on bail on appropriate terms and conditions.

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