The Allahabad High Court has held that in offences under Prevention of Money Laundering Act, 2002, jail is the rule and bail is exception.
The single-judge bench of Justice Krishan Pahal observed that Money Laundering as an offence is an economic threat to national interest and is committed by the white-collar offenders who are deeply rooted in society and cannot be traced out easily.
Learned Counsel for the applicant who has sought bail for offences under PMLA placed heavy reliance on Nikesh Tarachand Shah Vs. Union of India & ANR., 2017 Latest Caselaw 823 SC wherein the Supreme Court has declared twin conditions for grant of bail under Section 45(1) of P.M.L.A. as unconstitutional
On the other hand, Learned Counsel for the Enforcement Directorate has placed much reliance on the judgment of Supreme Court in case The Income Tax Officer, Circle I (2), Kumbakonam Vs. V. Mohan, 2021 Latest Caselaw 682 SC wherein it has been held that the rigors of Section 45 of the PMLA would be applicable to the petitioners who file applications for grant of anticipatory bail in the case of offences under the PMLA.
The Court at the outset noted that Section 45 specially provides two conditions which is mandatory in nature and must be complied before granting bail to accused of offence which has been reiterated is case of Gautam Kundu Vs. Manoj Kumar, Assistant Director, Eastern Region, Directorate of Enforcement (Prevention of Money Laundering Act) Govt. of India, 2015 Latest Caselaw 830 SC
It further mentioned Varinder Singh Vs. State of Punjab & ANR., 2014 Latest Caselaw 30 SC wherein Supreme Court has observed that Sec 45 of PML Act imposes conditions for grant of bail. Bail cannot be granted without complying with requirements of section 45 of PML Act.
In conclusion, the Court cited Y.S. Jagan Mohan Reddy Vs. Central Bureau of Investigation, 2013 Latest Caselaw 378 SC, State of Gujarat Vs. Mohanlal Jitamaljiporwal & ANR, 1987 Latest Caselaw 84 SC, P. CHIDAMBARAM vs. DIRECTORATE OF ENFORCEMENT, 2019 Latest Caselaw 1195 SC to stress on stringent criteria in grantintg bail in PMLA cases.
The Court remarked that being a special enactment, PMLA has overriding effect on general law.
"Money Laundering being an offence is economic threat to national interest and it is committed by the white collar offenders who are deeply rooted in society and cannot be traced out easily. These kind of offences are committed with proper conspiracy, deliberate design with the motive of personal gain regardless of the consequences to the society and economy of Country. Hence, for money-launderers "jail is the rule and bail is an exception".
The arguments tendered by the counsel for the applicant can be agitated at the stage of regular bail but not under Section 438 Cr.P.C., the Court said.
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