Supreme Court Affirms 'Bail Over Jail' Principle Applies to Money Laundering Cases

A bench of Justices BR Gavai and KV Viswanathan said, "The court has held that even in cases under the Prevention of Money Laundering Act, bail is a rule and jail is an exception." The bench said no person needs to be deprived of his liberty and s 45 of PMLA laying down twin conditions for bail of an accused in money laundering case does not rewrite the principle to mean that deprivation of liberty is the rule.

The Supreme Court has held that even in money laundering cases, 'bail is a rule and jail an exception', while granting relief to Jharkhand Chief Minister Hemant Soren's aide in an illegal mining-related case registered by the Enforcement Directorate.

A bench of Justices BR Gavai and KV Viswanathan said, "The court has held that even in cases under the Prevention of Money Laundering Act, bail is a rule and jail is an exception." The bench said no person needs to be deprived of his liberty and s 45 of PMLA laying down twin conditions for bail of an accused in money laundering case does not rewrite the principle to mean that deprivation of liberty is the rule.

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It said, "The liberty of the individual is always the rule and the deprivation of it by procedure established by law is the exception." The bench added, "Twin test under section 45 of the PMLA does not take away this principle."

The court has granted bail to Prem Prakash, whom the ED describes as a close aid of Soren and accused of illegal mining in the state. The top court set aside the March 22 order of the Jharkhand High Court denying him bail and directed the trial court to expedite the trial in the case.

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