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Synopsis

In a significant observation, the Supreme Court has held even under PMLA the governing principle is that “Bail is the Rule and Jail is the Exception”.

Referring to the judgment in Vijay Madanlal Choudhary and Ors. vs. Union of India and Ors. a division bench has said noted that while the top court categorically held that while Section 45 of PMLA restricts the right of the accused to grant of bail, it could not be said that the conditions provided under Section 45 impose absolute restraint on the grant of bail.

While reading these observations in context of the recent judgment in Manish Sisodia's case, the top court has said, "All that Section 45 of 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 law..".

A bench of Justices BR Gavai and KV Vishwanathan has further observed, "Liberty of the individual is always a Rule and deprivation is the exception. Deprivation can only be by the procedure established by law, which has to be a valid and reasonable procedure. Section 45 of PMLA by imposing twin conditions does not re-write this principle to mean that deprivation is the norm and liberty is the exception. As set out earlier, all that is required is that in cases where bail is subject to the satisfaction of twin conditions, those conditions must be satisfied.".

Top Court has made these observations while granting bail to one Prem Prakash, accused of offences under Sections 3 and 4 of the Prevention of Money Laundering Act.

Prakash, an aide of Jharkhand Chief Minister Hemant Soren, was accused of falsification of the original records in the Circle Office, Bargain, Ranchi and the Office of Registrar of Assurances, Kolkata respectively.

It was alleged that Prakash conspired with the other accused persons, namely, Afshar Ali @ Afsu Khan, Rajesh Rai, Lakhan Singh, Imtiaz Ahmad, Bharat Prasad, Saddam Hussain, Punit Bhargava, Chhavi Ranjan and Bishnu Kumar Agarwal in the acquisition of proceeds of crime in the form of landed property.

Furthermore, it was specifically alleged that the appellant being an accomplice of Bishnu Kumar Agarwal used his connections to assist Bishnu Kumar Agarwal in acquiring the land and that Bishnu Kumar Agarwal transferred the money to Punit Bhargava and the amount was further transferred to Jamini Enterprises.

After being taken into custody on 11th August 2023, Prakash's application for bail was rejected by the Special Judge on 20the September 2023. He preferred a bail application before the High Court which was also declined. Hence he approached the Supreme Court by way of the instant petition.

Case Title: PREM PRAKASH vs. UNION OF INDIA THROUGH THE DIRECTORATE OF ENFORCEMENT