The Supreme Court has held that sickness or infirmity are valid grounds of bail for an accused under Prevention of Money Laundering Act (PMLA).
The bench of Chief Justice of India D.Y. Chandrachud, Justice J.B. Pardiwala and Justice Manoj Misra has observed that the petitioner, Amar Sadhuram Mulchandani, former chairperson of Seva Vikas Co-operative Bank is 67 years old and has spent nearly a year and three months in custody. Based on the medical evaluation which has been provided by the Medical Team at Sir J J Group of Hospitals, Mumbai, it is evident that the petitioner fulfills the threshold required for being enlarged on bail.
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Background
The petitioner was arrested on 1 July 2023 in connection with FIR No ECIR/MBZO- II/10/2021 dated 31 March 2021 lodged by the Directorate of Enforcement for alleged offences punishable under Section 45(1) of the Prevention of Money Laundering Act 20021 on the basis of a predicate offence bearing CR No 163 of 2018 registered at Vimantal Police Station, Pune.
The petitioner moved a second application for grant of bail on medical grounds. The application was dismissed by the impugned judgment and order of the High Court of Judicature at Bombay dated 9 August 2024.
Notice was issued in these proceedings on 2 September 2024.
On 4 October 2024, a direction was issued for a fresh medical evaluation of the petitioner by a team at the J J Hospital, Mumbai. A report dated 10 October 2024 has been submitted by the Medical Board of Sir J J Group of Hospitals, Mumbai.
Relevant PMLA Provisions Related To Grounds Of Bail
The proviso to Section 45(1) of PMLA specifically contemplates that a person who “is sick or infirm” may be released on bail if the Special Court so directs.
According to Section 45 of the PMLA, bail can be granted to an accused in a money laundering case only if twin conditions are satisfied – there should be prima facie satisfaction that the accused has not committed the offence and that he is not likely to commit any offence while on bail.
Conclusion
The court directed that the petitioner be released on interim bail subject to such terms and conditions as may be imposed by the Special Court.
Case Details
Case Title: AMAR SADHURAM MULCHANDANI VERSUS DIRECTORATE OF ENFORCEMENT & ANR.
Case No.: Petition(s) for Special Leave to Appeal (Crl.) No(s).11376/2024
Date: 14-10-2024
Counsel For Petitioner: Mukul Rohatgi, Sr. Adv., Mr. Siddhartha Dave, Sr. Adv., Mr. Sudhanshu Choudhari, Sr. Adv., Mr. Shantanu Phanse, Adv., Mr. Sudhanva Bedekar, Adv., Ms. Vidhi Pankaj Thaker, Adv., Ms. Kalyani Bhide, Adv., Ms. Gautami Yadav, Adv., Mr. Prastut Mahesh Dalvi
Counsel For Respondent: Annam Venkatesh
