New Delhi: For the third time in the last month, the Supreme Court of India has reiterated the legal principle that “bail is the jail and jail an exception” while granting bail to various accused in money laundering cases being probed by the Enforcement Directorate (ED).
Apex court granted bail to an accused in a money laundering case
On Wednesday, a bench of Justice BR Gavai and Justice KV Vishwanathan while granting bail to one Prem Prakash, an accused in a money laundering case and aide of Jharkhand Chief Minister Hemant Soren said, “Even under PMLA (Prevention of Money Laundering Act) the governing principle is that “Bail is the Rule and Jail is the Exception”.
The court added, “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.”
“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,” the top court said in its order.
Bail is the rule and jail an exception, same bench earlier stressed while granting bail to Manish Sisodia
Earlier this month, the same bench of the Supreme Court had stressed on the need to follow the legal principle that “bail is the rule and jail an exception” while granting bail to former Delhi Deputy Chief Minister Manish Sisodia, 17 months after his arrest in the alleged Delhi Excise Policy scam or the liquor scam.
This bail order is significant because in the past lower courts and high courts have felt constrained in granting bail to an accused in money laundering cases because of section 45 of the Prevention of Money Laundering Act.
The court has clarified that “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.”
The case pertains to conspiracy and money laundering done by a group of people with respect to sale of land in Ranchi and the proceeds thereof.
The court in its judgment has also said, “We have no hesitation in holding that when an accused is in custody under PMLA irrespective of the case for which he is under custody, any statement under Section 50 PMLA to the same investigating agency is inadmissible against the maker.”