Section 45 of the PMLA

Context: The Supreme Court has emphasized that in cases of money laundering, the principle of bail being the rule and jail an exception should be upheld.

• Interpretation of Section 45: The Supreme Court clarified that Section 45 of the Prevention of Money Laundering Act (PMLA), which outlines the conditions for granting bail, should not be interpreted in a manner that makes obtaining bail virtually impossible in money laundering cases.
• Conditions under Section 45: According to Section 45, bail may not be granted to an accused unless:
  1. The Public Prosecutor has had a chance to oppose the bail application;
  2. If the Public Prosecutor opposes the bail, the court can only grant bail if it is convinced that the following two conditions are met: a) There are reasonable grounds to believe that the accused is not guilty of the offense; b) The accused is unlikely to commit any further offense while out on bail.
• Supreme Court’s Ruling: The court ruled that bail should be granted if these twin conditions are met.
• Judgment on Liberty: The judgment further reaffirmed that the liberty of an individual is a fundamental rule, and its deprivation is an exception.