The Supreme Court in the case The Directorate of Enforcement vs M. Gopal Reddy and another observed and has reiterated that the conditions under Section 45 of the Prevention of Money Laundering Act, 2002 for granting of bail are applicable to anticipatory bail applications as stated under section 438 of the Code of Criminal Procedure as well.
The bench comprising of Justice MR Shah and Justice CT Ravikumar in the case observed and has made this observations while setting aside an order of the Telangana High Court wherein the court observed that the rigours of Section 45 Prevention of Money Laundering Act, 2002 are not being applicable to anticipatory bail applications.
It has also been noted by the bench that the High Court misunderstood the judgement of Supreme Court in the case Nikesh Tarachand Shah Vs. Union of India and Anr, wherein the court hold that rigours of Section 45 PMLA do not apply to Section 438 of Code of Criminal Procedure.
It has also been noted by the bench that in the Assistant Director Enforcement Directorate vs Dr VC Mohan, wherein the court clarified that Section 45 PMLA will apply to Section 438 of Code of Criminal Procedure.
The High Court made the observations in the case that the provisions of Section 45 of the Act, 2002 shall not be applicable in connection with an application as stated under Section 438 of Code of Criminal Procedure which being contrary to the decision in the case of Dr. V.C. Mohan (supra) and the same is on misunderstanding of the observations which is made in the case of Nikesh Tarachand Shah (supra). Therefore, once the rigour under Section 45 of the Act, 2002 shall be applicable the impugned judgment and order which being passed by the High Court for granting of an anticipatory bail to respondent No. 1 being unsustainable.
The court also stated that the conditions stated under Section 45 PMLA that when an accused in a money laundering case applies for bail, the said court has to give an opportunity to the public prosecutor to be heard and if it has been opposed by the public prosecutor, the said court can also grant bail only when the court is satisfied that the accused is not guilty and unlikely to commit a similar offence when he is on bail.
Accordingly, the Top Court upheld these conditions in Vijay Madanlal Choudhary vs Union of India
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