PMLA Bail After Prem Prakash: Section 45 Must Operate Within Article 21
Prem Prakash v. Union of India, decided on 28 August 2024, reinforced that the restrictive bail conditions in Section 45 of the PMLA do not override the constitutional protection of personal liberty. The Supreme Court granted bail after examining the evidentiary record and period of custody.
The twin conditions
For offences covered by Section 45, the Public Prosecutor must receive an opportunity to oppose bail. If opposed, the court must be satisfied that there are reasonable grounds for believing the accused is not guilty and is not likely to commit an offence while on bail. These are additional to ordinary bail considerations.
The standard is not a final acquittal analysis. At the bail stage the court assesses the available material without conducting a full trial. It must give reasons showing genuine application of mind, while avoiding definitive findings that could prejudice evidence at trial.
Article 21 remains controlling
Prem Prakash stated the broader constitutional principle that bail is the rule and jail the exception, including under special statutes. Where incarceration becomes excessive, the trial is unlikely to conclude within a reasonable time, or the evidence does not justify continued detention, Article 21 can require release on appropriate conditions.
Statements and corroboration
The Court also examined reliance on statements recorded under Section 50. Such statements are not automatically excluded, but their maker, context, voluntariness and corroboration matter. Bail cannot be refused through a mechanical recital of allegations.
Practical application
An effective PMLA bail order should identify the alleged proceeds, the accused’s specific role, the evidence connecting the two, custody already undergone, trial progress and risks of flight, interference or reoffending. Seriousness is relevant but cannot be the only reason.
Sources
Supreme Court of India, Prem Prakash v. Union of India, Criminal Appeal No. 3572 of 2024, allowed 28 August 2024: https://api.sci.gov.in/officereport/2024/41300/41300_2024_2024-09-13_2063.html
Prevention of Money-Laundering Act, 2002, Section 45: https://dor.gov.in/prevention-money-laundering
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