The Supreme Court of India has recently addressed the application of Section 45(1) of the Prevention of Money Laundering Act (PMLA), 2002, concerning the grant of bail to women accused of money laundering.sclaw.in+2theprint.in+2telegraphindia.com+2
Key Legal Provisions
Section 45(1) of the PMLA stipulates two stringent conditions for granting bail:theprint.in
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Prima facie satisfaction that the accused is not guilty of the offence.
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Satisfaction that the accused is not likely to commit any offence while on bail.
However, the first proviso to Section 45(1) provides an exception, allowing bail to be granted to certain categories of accused, including women, without the need to satisfy these stringent conditions.theprint.in
Supreme Court's Clarification
In a significant ruling, the Supreme Court emphasized that the benefit of the first proviso to Section 45(1) is not automatic and should not be denied solely based on the accused's social or political status. The Court clarified that the provision aims to protect vulnerable individuals, including women, who may be misused in criminal activities. It further stated that courts should exercise discretion judiciously, considering the facts and circumstances of each case. telegraphindia.com+4sclaw.in+4timesofindia.indiatimes.com+4lawbeat.in+2thehindu.com+2timesofindia.indiatimes.com+2
The Court also addressed the misapplication of its previous judgment in Saumya Chaurasia v. Directorate of Enforcement (2024), where it was erroneously interpreted that the proviso applies only to "vulnerable women." The Supreme Court clarified that the proviso applies to all women and emphasized the need for sensitivity and sympathy towards all categories of persons mentioned in the provision. theprint.in+6sclaw.in+6thehindu.com+Case Examples
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K. Kavitha v. Directorate of Enforcement: The Supreme Court granted bail to K. Kavitha, a prominent political figure, in the Delhi excise policy case. The Delhi High Court had earlier denied bail, citing her status as an "accomplished and well-educated woman." The Supreme Court overturned this decision, stating that such factors should not preclude the application of the proviso to Section 45(1). lawcutor.com+6theprint.in+6thehindu.com+6sclaw.in
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Shashi Bala Singh v. Directorate of Enforcement: The Supreme Court criticized the Enforcement Directorate for arguing that stringent bail conditions under the PMLA should apply to women. The Court emphasized that such submissions are contrary to the statute and granted bail to Shashi Bala Singh, who had been in custody since November 2023. lawcutor.com+2telegraphindia.com+2business-standard.com+2
Conclusion
The Supreme Court's recent rulings underscore the importance of applying the first proviso to Section 45(1) of the PMLA in a manner that is consistent with the statute's intent. While the proviso provides certain exemptions, it does not guarantee automatic bail. Courts must exercise their discretion judiciously, ensuring that the fundamental right to personal liberty is balanced with the need to prevent misuse of the legal provisions
