Supreme Court: Money Laundering Serious Offences, Courts Cannot Grant Bail Casually Without Considering Section 45 Of PMLA Conditions

The Supreme Court in the case The Union Of India Through The Assistant Director Versus Kanhaiya Prasad observed and has set aside the bail granted to the individual accused of committing money laundering after noting that the High Court failed to satisfy the twin conditions stipulated under Section 45 of the Prevention of Money Laundering Act, 2002, PMLA.

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The court stated that the conditions enumerated in Section 45 Prevention of Money Laundering Act, 2002, PMLA will have to be complied with even in respect of application for bail made under Section 439 of Code of Criminal Procedure, Cr.P.C.

The Section 24 provides that in case of a person charged with the offence of money laundering under Section 3, the Authority or Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering. Therefore, the burden to proof that proceeds of crime are not involved in money laundering would lie on the person charged with the offence.