[BREAKING] "Bail Is Rule And Jail Is Exception Even In PMLA Cases": Supreme Court While Granting Relief To Jharkhand CM Hemant Soren's Aide

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The Court granted bail to Prem Prakash, an alleged associate of Jharkhand Chief Minister Hemant Soren, in a money laundering case.

[BREAKING] "Bail is Rule and Jail is Exception Even in PMLA Cases": Supreme Court While Granting Relief to Jharkhand CM Hemant Soren's Aide — [BREAKING] “Bail is Rule and Jail is Exception Even in PMLA Cases”: Supreme Court While Granting Relief to Jharkhand CM Hemant Soren’s Aide

NEW DELHI: In a landmark judgment, the Supreme Court(28th Aug) reaffirmed the principle that ‘bail is the rule and jail is the exception,’ even in cases under the Prevention of Money Laundering Act (PMLA).

The Court granted bail to Prem Prakash, an alleged associate of Jharkhand Chief Minister Hemant Soren, in a money laundering case.

Justices BR Gavai and KV Viswanathan emphasized that individual liberty is the norm, and its deprivation by legal procedure is an exception.

The Court clarified that the stringent bail conditions under PMLA do not override the fundamental principle that bail is the rule and jail is the exception.

“Referencing the Manish Sisodia case, we affirm that even under PMLA, bail remains the rule and imprisonment the exception. Section 45 only outlines the conditions for granting bail; individual liberty remains the default, with deprivation being the exception as dictated by law. The twin test does not alter this principle,”

the Court stated.

Additionally, the Court ruled that confessions made by an accused under PMLA to an investigating officer are generally inadmissible as evidence, as Section 25 of the Indian Evidence Act applies.

“We assert that any incriminating statements made by the appellant will be affected by Section 25. It would be unjust to admit such statements simply because he was under custody for another ECIR. Allowing these statements would be contrary to the principles of justice,”

the Court noted.

The Court determined that, given the trial’s delay, the extensive list of witnesses, and the appellant’s lack of prima facie guilt or risk of tampering with evidence, bail was warranted.

Prakash was granted bail on the condition of furnishing a Rs 5 lakh bond and meeting additional conditions set by the trial court.

Previously, Prakash was detained in August 2022 following raids at his Ranchi residence, where authorities reportedly discovered two AK-47 rifles, 60 live rounds, and two magazines. He faces charges under both money laundering laws and the Arms Act.

A bench of Justices Sanjiv Khanna and Dipankar Datta expressed concerns over the Enforcement Directorate (ED) filing four supplementary chargesheets, the most recent on March 1, 2024, in a money laundering case linked to alleged illegal mining in Jharkhand.

The bench criticized Additional Solicitor General SV Raju, representing the ED, for the ongoing investigation despite the multiple chargesheets.

“You (ED) are being put on notice. Under the law, you cannot arrest someone without completing the investigation. Detaining a person without initiating a trial amounts to detention and infringes on individual liberty. In some instances, we need to address this issue,”

the bench remarked to Raju.