PMLA bail restrictions cannot override the fundamental right to liberty: Bombay HC

Mumbai, Sep 21 (PTI) Stringent conditions under the Prevention of Money Laundering Act can not override the fundamental right to liberty under Article 21, the Bombay High Court has said while granting bail to a 72-year-old man. The trial in the case of alleged bank fraud, for which applicant Suryaji Jadhav was arrested, was not likely to conclude any time soon and he was suffering from cancer, Justice Madhav Jamdar noted in his order of September 19.

The copy of the judgement became available on Saturday.

Restrictions imposed by laws such as the PMLA "melt down" where an accused has suffered long incarceration and the trial is inordinately delayed, the judge said.

"Despite the restrictive statutory provisions like section 45 of the PMLA, the right of an accused under Article 21 of the Indian Constitution cannot be allowed to be infringed," Justice Jamdar held.

Under section 45 of the PMLA, a court, while granting bail to an accused in a money laundering case, must be satisfied that there are reasonable grounds to believe that he is not guilty, and/or is above 60 years of age, or a woman or is sick or infirm.

Article 21 protects the fundamental right to life and personal liberty.

Jadhav was arrested by the Enforcement Directorate (ED) for alleged fraud at the Pune-based Shivajirao Bhosale Sahakari Bank in March 2021. He and others were accused of misappropriating funds and fraudulent disbursal of loans.

Jadhav had sought bail on the grounds of long incarceration and delayed trial.

The court noted that more than 250 witnesses were proposed to be examined by the prosecution, and the trial was yet to start.

Jadhav had completed more than half of the maximum punishment he could get in the case, the HC said.

"In such a situation, statutory restrictions will not come in the way of the court to grant bail to protect the fundamental right of the accused under Article 21," the court said.

Courts are expected to appreciate the legislative policy against grant of bail under the PMLA, but "the rigours of such provisions will melt down when there is no likelihood of trial being completed within a reasonable time and the period of incarceration already undergone has exceeded a substantial part of the prescribed sentence," the high court said.

The court also noted that the ED has already attached several properties of the accused and sold them as part of recovery proceedings with Rs 60 crore recovered so far.

"....the applicant is 72 years old and is suffering from cancer. Hence, he does not appear to be at risk of flight," the judge said, granting Jadhav bail on a bond of Rs 5 lakh. PTI