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Context:

The Supreme Court has criticized the Enforcement Directorate (ED) for arguing that the rigorous bail conditions in money laundering cases will apply to women even though the Prevention of Money Laundering Act, 2002 (PMLA) provides an exception to this bail standard.

Background of the case

The case involves Shashi Bala, a government school teacher accused of aiding the Shine City Group of Companies in a money laundering scam.

The ED alleged that Bala received over Rs. 36 lakh as part of the money laundering exercise. She was arrested in November 2023, and her bail plea was initially denied by the Allahabad High Court. The Supreme Court later granted her bail.

The Supreme Court criticized the Enforcement Directorate (ED) for claiming that the rigorous bail conditions under the Prevention of Money Laundering Act (PMLA) should apply to women, despite the clear exception mentioned in the law for women.

The court's concern was that the ED's argument contradicted the law, particularly Section 45(1) of the PMLA, which provides an exception for women.  

About the Section 45 of the PMLA  

Section 45 of the Prevention of Money Laundering Act (PMLA) imposes strict conditions for granting bail to individuals accused of money laundering. It requires the accused to prove that there is no prima facie case against them.

Bail can only be granted if the Public Prosecutor does not oppose the application or if the court is satisfied that the accused is not guilty and is unlikely to commit any offence while on bail. However, there is a crucial exception: a person who is a woman, under sixteen years, or sick or infirm, may be released on bail if the Special Court directs it.

The exception for women under Section 45 of the PMLA has been applied in the past. For example, in 2023, the Delhi High Court granted bail to Preeti Chandra, the wife of Sanjay Chandra of the Unitech Group, mentioning the exception for women. 

• The court emphasized that the law does not distinguish between types of women, whether they are household ladies, businesswomen, or politically active. 
• The court also ruled that any argument attempting to limit this exception was misinterpreted. However, the court clarified that the accused must not be a flight risk or a threat to witness tampering to be eligible for bail.

What was the final outcome of the case for Shashi Bala?

After the Supreme Court’s intervention, Shashi Bala was granted bail on January 15, 2025. The court mentioned that she had been in custody since November 2023, and there was no immediate possibility of her trial completing soon. Therefore, her continued detention was deemed unnecessary.  

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Source: 

INDIAN EXPRESS