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Synopsis

The Supreme Court has said that the stringent twin conditions under the Prevention of Money Laundering Act will not apply when a woman accused in a money laundering case seeks bail.

"The first proviso to sub section (1) of Section 45 operates as an exception to clause (ii) of sub-Section (1) of Section 45 of the PMLA and therefore, when a woman applies for bail, the twin conditions in clause (ii) need not be satisfied," a bench of Justices Abhay S Oka and Ujjal Bhuyan said.

Dealing with a bail plea filed by Shashi Bala alias Shashi Bala Singh, the court took an exception to a contention made by the Additional Solicitor General that even if an accused is a woman, notwithstanding the proviso to sub-Section (1) of Section 45 of the Prevention of Money-Laundering Act, 2002, rigours of clause (ii) of sub-Section (1) of Section 45 of the PMLA will apply.

"His submission was that even if a person, who is under the age the sixteen years, or is a woman, or is a sick or infirm person, still the stringent conditions under clause (ii) of sub-Section (1) of Section 45 of the PMLA will apply. When we called upon the ASG to make submissions on this aspect, he seeks time even to take instructions on this aspect," the bench said.

The court granted time to the Additional Solicitor General to make submissions in support of the submission that notwithstanding the proviso to sub-Section (1) of Section 45 of the PMLA, rigors of clause (ii) of subsection (1) of Section 45 of the PMLA will apply even to a woman.

"Solicitor General Tushar Mehta appears and states that rigors of clause (ii) of sub-Section (1) of Section 45 of the PMLA will not apply to a woman, in view of proviso to sub-Section (1) of Section 45 of the PMLA," the bench said.

In the case, the court said a charge had been framed. However, there were 67 witnesses and recording of evidence was yet to commence.

"As rigors of clause (ii) of sub-Section (1) of Section 45 of the PMLA will not apply, the Special Court ought to have treated the application as the one under Section 439 of the Code of Criminal Procedure, 1973 or Section 483 of the Bhartiya Nagarik Suraksha Sanhita, 2023. Hence, the first proviso to sub-Section (1) of Section 437 of the CrPC (the first proviso to sub-Section (1) of Section 480 of the BNSS) will apply," the bench said.

The court also noted as the predicate offence was not under the Narcotic Drugs and Psychotropic Substances Act, 1985, the maximum sentence could be of seven years.

"The appellant is a woman. There is no possibility of the trial concluding in near future, considering the fact that 67 witnesses are to be examined. There are no antecedents of the appellant brought on record. Therefore, a case is made out for enlarging the appellant on bail till the conclusion of the trial," the bench said.

The court directed that the appellant should be produced before the Special Court within a maximum period of one week.

"The Special Court shall enlarge the appellant on bail on appropriate terms and conditions including the condition of regularly and punctually attending the Special Court and cooperating with the Special Court for early conclusion of the trial. Apart from the other conditions which will be imposed by the Special Court, a condition of deposit of the passport shall be imposed," the court said.

The court also clarified the counsel for the respondent, ED should be heard on the terms and conditions.

"We make it clear that if the appellant fails to cooperate for early disposal of the case, it will be open for the respondent to apply for cancellation of bail," the bench said.

The court allowed the appeal against the Allahabad High Court's order of September 18, 2024, denying the petitioner bail in the case.

The petitioner had been under incarceration since November 25, 2023.

Petitioner Shashi Bala was a teacher in a government school and confidant of Rashid Naseem, head of operations of Shine City Group. Several hundred FIRs were lodged against the group for duping people in name of investment for various projects.

It was alleged she created a social media group and channel namely 'Customer ka Haq' and acted on the directions of Rashid Naseem in lieu of proceeds of crime.

Case Title: Shashi Bala @ Shashi Bala Singh Vs Directorate of Enforcement