“Bail Is The Rule, Jail The Exception, Even In Money Laundering Cases”: SC

Hearing On Contempt Plea

The Supreme Court ruled on Wednesday that even in money laundering cases, bail should be the norm and jail the exception.

This decision provided relief to Prem Prakash, an aide to Jharkhand Chief Minister Hemant Soren, who was implicated in an illegal mining case by the Enforcement Directorate.

A bench of Justices BR Gavai and KV Viswanathan emphasized that, under the Prevention of Money Laundering Act (PMLA), “bail is a rule and jail is an exception.” They clarified that Section 45 of the PMLA, which sets two conditions for granting bail in money laundering cases, does not override the principle that personal liberty should not be easily taken away.

The Supreme Court referenced its August 9 decision in the case of former deputy chief minister Manish Sisodia, highlighting that individual liberty is always the default position, and only under lawful procedures should it be restricted.

The bench stated, “The twin test under Section 45 of the PMLA does not take away this principle.”

As a result, the court granted bail to Prem Prakash, whom the ED accused of being involved in illegal mining activities in Jharkhand. The Supreme Court overturned the Jharkhand High Court’s March 22 decision that had denied him bail and instructed the trial court to speed up the proceedings in the case.