Stringent Bail Provisions Under Section 45 of PMLA Cannot Be Used To Detain Accused Indefinitely Says Delhi HC

The Delhi High Court recently granted bail to two former Bhushan Steel Limited (BSL) officials involved in a ₹46,000 crore money laundering case, ruling that the stringent bail provisions under Section 45 of the Prevention of Money Laundering Act (PMLA) cannot be used to detain the accused indefinitely amid delays in the trial process. 

The case involves Pankaj Kumar Tiwari and Pankaj Kumar both accused of financial fraud and money laundering allegations in the Bhushan Steel Ltd (BSL) matter. While Pankaj Kumar Tiwari was accussed of drafting templates for bill discounting and managing 150 shell companies used for money laundering, accused number 2 Pankaj Kumar was allegedly involved in accounts manipulation. 

Citing compliance with earlier investigations, the applicants argued for bail citing parity with the co-accused already on bail and delays in trial proceedings. The court granted bail considering several factors including the fact that the trial had not yet commenced, with a vast number of accused, witnesses and over 2.5 lakh pages of evidence. The court also took into account the concerns regarding health conditions of the accussed. 

In its judgement delivered on October 24, 2024, the court referenced decisions stressing on the right to speedy trial and the sacrosant nature of personal liberty under Article 21.

“Procedural safeguards and the right to bail must persist as bedrock principles in the justice system, even when laws impose restrictive conditions”, said the Court.

Senior Advocate, Mr. Sanjay Jain, led the matter, briefed by Legal Scriptures team comprising of Mr. Abhijit Mittal, Mr. Anukalp Jain, Ms. Shaivya Singh, Mr. Nishank Tripathi and Mr. Pulkit Khanduja.