Chargesheet Filed for Predicate Offences Not Grounds for Bail in PMLA Case: Supreme Court of India

The Supreme Court of India recently rendered a judgment on a case concerning the Prevention of Money Laundering Act (PMLA). 

The case, Directorate of Enforcement vs Aditya Tripathi, was heard by a bench comprising Justices MR Shah and CT Ravikumar.

The Directorate of Enforcement had filed an appeal against the order passed by the Telangana High Court granting bail to an accused in a money laundering case. 

The money laundering case was predicated on a case under the Prevention of Corruption Act 1988 registered in Madhya Pradesh in connection with awarding tender works of the MP Water Corporation.

The ED argued that the High Court erred in granting bail on the ground that chargesheet has been filed in the corruption case. The Supreme Court accepted this argument and opined that the High Court had not taken into consideration the rigors of Section 45 of PMLA. 

The Court further noted that the fact that other accused were discharged or acquitted from the predicate offences was not a ground to grant bail to the respondent.

Justice MR Shah stated that, “Merely because, for the predicated offences the chargesheet might have been filed it cannot be a ground to release the accused on bail in connection with the scheduled offences under the PML Act, 2000”. The Court set aside the bail granted to respondent no.1 and directed him to surrender before the concerned jail authority within a week.

The judgment of the Supreme Court highlights the importance of the PMLA in preventing money laundering and ensuring that those accused of such crimes are held accountable. It also serves as a reminder that the mere fact that chargesheet has been filed for the predicate offences is not a ground to release the accused on bail in connection with the offences under the Prevention of Money Laundering Act.(alert-success)