SECTION 45 OF THE PMLA (Syllabus: GS Paper 2 – Polity)

Context: The Supreme Court granted bail to former Delhi Deputy Chief Minister, citing prolonged pre-trial incarceration and trial delays as grounds to bypass stringent bail conditions under the Section 45 of the PMLA. 

Section 45 of the PMLA

• About: It stipulates that bail is not ordinarily granted for offences under this law, emphasizing that bail is an exception rather than the rule.
• Mandatory Hearing: The provision mandates that the public prosecutor must be heard in all bail applications, and if opposed, the court must apply a stringent twin test.
• Granting Bail: The twin conditions for granting bail include: 

o Reasonable grounds to believe the accused is not guilty; and 

o Assurance that the accused will not commit any offence while on bail.

• Comparison with Other Laws
• Similar bail restrictions are found in laws dealing with serious offences, such as Section 36AC of The Drugs and Cosmetics Act, Section 37 of The NDPS Act, and Section 43D(5) of the UAPA.

o UAPA's Bail Provision: Under the UAPA, bail is restricted for offences related to terrorism unless the public prosecutor is heard, or the court finds prima facie evidence to believe the accusation is true.

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.