Supreme Court Rules Sickness and Infirmity Valid Grounds for Bail Under PMLA
Context:
The Supreme Court emphasised that sickness and infirmity are valid grounds for bail under the Prevention of Money Laundering Act (PMLA), even with the stringent conditions attached to it.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights:
- A three-judge bench, led by Chief Justice of India D.Y. Chandrachud, granted interim bail to Amar Sadhuram Mulchandani, former Chairperson of Seva Vikas Co-operative Bank, highlighting this relief for ailing accused individuals under PMLA.
- The proviso to Section 45(1) of the PMLA specifies that persons who are “sick or infirm” can be granted bail if the Special Court permits.
- Section 45(1) of PMLA generally requires that the accused must prove they are not guilty and won’t re-offend to be eligible for bail. This makes bail in PMLA cases challenging.
- The proviso allows exemptions for minors, women, and the ailing from these stringent bail requirements, providing a relief mechanism in certain cases.
- Mr. Mulchandani, aged 67, had spent over a year in custody before being granted bail under this provision.
Prevention of Money Laundering Act (PMLA), 2002:
- Enacted in response to India’s global commitments, the PMLA aligns with international agreements like the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988.
- It forms a crucial part of India’s legal framework to combat money laundering, applicable to various financial entities.
- Recent Amendments:
- Proceeds of Crime Clarification: The definition broadens to include not only property derived from scheduled offences but also those from activities related or similar to scheduled offences.
- Redefining Money Laundering: Formerly dependent on a predicate offence, money laundering is now treated as a standalone crime under Section 3 of PMLA.
- Expanded Offences: The amendment includes actions like concealment, possession, acquisition, and projecting as untainted property, treating them as integral to the offence.
- Continuing Nature: Money laundering is recognised as a continuing offence until the individual benefits from its associated activities, emphasising the prolonged accountability of offenders.
