24 Nov 2017
Two conditions for bailing one out under Prevention of Money Laundering Act struck down by Apex Court
SUPREME COURT OF INDIA, Nikesh Tarachand Shah v. Union of India
Money Laundering Act : Section 45(1) of the Prevention of Money Laundering Act, 2002, insofar as it imposes two further conditions for release on bail, to be unconstitutional as it violates Articles 14 and 21 of the Constitution of India
Section 45(1) imposes two conditions for grant of bail where an offence punishable for a term of imprisonment of more than 3 years under Part A of the Schedule to the Act is involved. The conditions are that
a) the Public Prosecutor must be given an opportunity to oppose any application for release on bail and
b) the Court must be satisfied, where the Public Prosecutor opposes the application, that there are reasonable grounds for believing that the accused is not guilty of such offence, and that he is not likely to commit any offence while on bail.