Even In PMLA, Bail Is The Rule & Jail Is The Exception : Supreme Court

Even in the Prevention of Money Laundering Act (PMLA), bail is the rule and jail is the exception, held the Supreme Court in a judgment delivered today.

A bench comprising Justices BR Gavai and KV Viswanathan held so while allowing bail to an accused in a money laundering case. The bench held that Section 45 of the PMLA only lays down that the grant of the bail would be subject to the twin conditions and does not alter the fundamental principle that bail is the rule.

"We have held that even in PMLA, bail is the rule and jail is the exception," Justice Viswanathan said while pronouncing the judgment.

Justice Viswanathan read out the operative portion as follows :

"All that Section 45 PMLA mentions is that certain conditions are to be satisfied. The principle that bail is the rule and jail is the exception is only a paraphrasing of Article 21 of the Constitution of India which states that no person shall be deprived of his life or personal liberty except according to the procedure established by the law. Liberty of the individual is always the rule and deprivation is the exception. Deprivation can be made only by the procedure established by the law which has to be valid and reasonable. S.45 PMLA by imposing twin conditions does not rewrite this principle to mean that deprivation is the norm and liberty is the exception. All that is required is that in cases where bail is subject to the satisfaction of the twin conditions, those conditions must be satisfied."

The bench considered the long incarceration of the petitioner and the delay in trial due to the large number of witnesses to grant bail. Setting aside the judgment of the Jharkhand High Court which denied bail to the petitioner.

The bench also held that the prosecution must prima facie establish foundational facts for the reverse burden of proof to apply as per Section 24 of the PMLA.

Also from the judgment - Statement To ED By Accused Under PMLA Custody Incriminating Oneself In Another PMLA Case Inadmissible: Supreme Court

Related - 'Bail Is The Rule, Jail Is The Exception' Even In Special Statutes Like UAPA : Supreme Court

Other reports on the judgment can be read here.

Case Title : Prem Prakash v. Union of India through the Directorate of Enforcement|SLP(Crl) No. 5416/2024

Citation : 2024 LiveLaw (SC) 617

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