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    •     Mains Marks Booster     EXCEPTION UNDER SECTION 45 UNDER PMLA (Syllabus: GS Paper 3 – Economy/Internal Security)

    EXCEPTION UNDER SECTION 45 UNDER PMLA (Syllabus: GS Paper 3 – Economy/Internal Security)

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    Context: The Supreme Court has granted bail to Bharat Rashtra Samithi (BRS) leader in the Delhi Excise policy case, overturning the Delhi High Court's earlier denial of her bail plea under the Prevention of Money Laundering Act (PMLA) which was based on a key exception for women.


    Section 45 of the PMLA

    • About: It provides for bail on money laundering charges.
    • Bail Provision: This provision in the law, like the stringent bail standard in the Unlawful Activities (Prevention) Act, 1967 (UAPA), puts the onus on the accused to prove that there is no prima facie case against them while seeking bail.
    • Section 45(1): “No person accused of an offence under this Act shall be released on bail or on his own bond unless:

    o the Public Prosecutor has been given an opportunity to oppose the application for such release; and 

    o where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.”

    • Exception to the Bail Standard: There is an exception to this bail standard for individuals under sixteen years old, women, or those who are sick or infirm, provided the Special Court directs their release. This exception aligns with similar provisions in the Indian Penal Code.

    Crucial Exception of Section 45 of PMLA

    • Special Exception for Vulnerable Groups: Section 45 includes an important exception allowing bail for women, minors, or those who are sick or infirm, subject to the Special Court's direction.
    • Mirroring Other Laws: This exception is consistent with exemptions in other Indian laws, such as the Indian Penal Code, concerning women and minors.
    • Preeti Chandra Case (2023): The Delhi High Court cited the case of Preeti Chandra v. Directorate of Enforcement, emphasizing the application of the exception for women under Section 45.
    • Clarification by Court: The court rejected the Enforcement Directorate's argument that the accused's social status should impact bail eligibility, affirming that the exception applies universally, provided there is no flight risk or threat to witnesses.


    Legal Precedent

    • About: A precedent is a previous instance or case which furnishes an example or rule for subsequent conduct, and a pattern upon which subsequent conduct is based.
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