Under PMLA, Jail Is The Rule And Bail Is The Exception: Madras High Court In Senthil Balaji's Plea

Justice Anand Venkatesh made the observations while dismissing the bail plea of former TN Minister Senthil Balaji. Balaji was arrested by the Enforcement Directorate in connection with a cash-for-job money laundering case. Balaji had previously sought bail on medical grounds which was also rejected by the courts.

“Section 45 of the PMLA turns the principle of bail is the rule and jail is the exception on its head. Under the PMLA regime jail is the rule and bail is the exception. The power of the Court to grant bail is further conditioned upon the satisfaction of the twin conditions prescribed under Section 45(1) (i) and (ii) PMLA,” the court observed.

The court added that while considering bail under Section 45 of the Prevention of Money Laundering Act, the courts were further required to satisfy the “twin condition”. The court was thus required to prima facie take a view on the basis of the materials collected during the investigation and see whether there were reasonable grounds to believe that the accused had committed the offences.

The court emphasised that while considering bail plea, the court could not venture into conducting a roving enquiry or mini trial. If based on the prima facie materials, the court was convinced that there no doubt regarding the genuineness of the materials, the court shouldn't doubt the probative value of the documents.

In the present case, the court observed that the documents produced by the agency prima facie established a connection between Balaji and other accused in the accused who were in turn co-ordinating with the officials of the Transport Corporation regarding the recruitment process.

The court was thus satisfied that the materials strengthened the case against Balaji. Noting that the twin requirements were not satisfied, the court was thus not inclined to grant bail to Balaji.