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Apex Court Declares Money Laundering Bail Provision Act 2002 Unconstitutional

Team SoOLEGAL 23 Nov 2017 6:00pm

Image courtesy: The Vijay Mallya story: How King of Good Times made bakras of 17 banks Apex Court Declares Money Laundering Bail Provision Act 2002 Unconstitutional

A two judge bench of the Supreme Court ruled that Section 45(1) of the Prevention of Money Laundering Act (PMLA), 2002 is unconstitutional as it violates Articles 14 and 21 of the constitution of India.

A bench led by Justice Rohinton F Nariman struck down Section 45 in the PMLA to the extent that it refuses bail to the accused on the basis of twin conditions.

The first condition says that no bail can be given without giving the public prosecutor an opportunity to oppose the bail plea. The second condition stipulated that the bail can be given only when the concerned court is prima facie satisfied that the accused is not guilty of the offence alleged against him.

These two conditions made grant of bail virtually impossible in money laundering cases and the maxim tend to be shifted from "bail is rule and jail an exception" to "jail is rule and bail an exception".

A clutch of petitions challenged the validity of Section 45 to the extent that it made bail an exception, contrary to legal principles and a body of Supreme Court judgments.

The top court accepted the petitioners' contentions and held that Section 45, in so far as it laid down the two stringent and unreasonable conditions, is bad in law and cannot be sustained. [Inputs News18]



Tagged: Supreme Court   Money Laundering Act   Money Laundering Case   constitution of India   Judge  
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