Bail In Money Laundering Cases: A Tussle Between Judiciary And Legislature

Koustubh Abhinav Desai, Bennett University

Section 45 of the Prevention of Money Laundering Act,2002 (PMLA) gives provisions for the bail for the offences committed under this Act. Now in the present time it provides scope for bail for any offence committed under the PMLA but before amendment of 2018 it was only available for an offence punishable for term of imprisonment of more than 3 years under Part A of the schedule. The constitutionality of the section 45 was challenged in the case of Nikesh Tarahchand Shah vs UOI & Anr.1 (23rd November, 2017) The Hon’ble Supreme Court held that here was no rational basis in differentiating the offences based on term of imprisonment for getting bail. As by earlier provision offences only punishable for term of imprisonment of more than 3 years were given a bail and no other offences. And this distinction between offences for bail was violative of Art. 14 and Art. 19 of the Indian Constitution.