On Tuesday, the Supreme Court reaffirmed that the benefit of Section 436A of the Code of Criminal Procedure (CrPC) extends to those accused of money laundering, as reported by Live Law.
Section 436A CrPC
Section 436A of the CrPC stipulates that an undertrial prisoner who has served half of the maximum sentence for the alleged offense should be released on bail.
Supreme Court Bench and Precedent
A Supreme Court bench comprising Justices Abhay S. Oka and Ujjal Bhuyan referred to the precedent set in the 2022 judgment of Vijay Madanlal Choudhary versus Union of India. This judgment established that Section 436A CrPC is applicable to cases under the Prevention of Money Laundering Act, 2002 (PMLA).
Court’s Discretion
The bench noted that while Section 436A CrPC is applicable to PMLA cases, the court retains the discretion to deny bail if the trial is delayed due to actions by the accused.
Stringent Bail Conditions under PMLA
The PMLA imposes stringent conditions for granting bail. Section 45 of the PMLA is a “negative” provision that prohibits courts from granting bail unless the accused can demonstrate that there is no prima facie case against them and that they will not commit any offenses in the future.
Nikesh Tarachand Shah Case
In November 2017, the Supreme Court declared the provisions of Section 45 of the PMLA unconstitutional in the case of Nikesh Tarachand Shah v. Union of India. However, these provisions were reinstated through amendments to the PMLA via the Finance Act, 2018, and upheld by the Supreme Court in a 2021 ruling.
Current Legal Status
While certain aspects of the 2021 ruling, such as the Enforcement Directorate’s (ED) obligation to disclose the Enforcement Case Information Report (ECIR) to the accused, are under review, the ruling stands as the current law, as there is no stay on the judgment.
Multiple Choice Questions (MCQs):
- What did the Supreme Court reiterate regarding Section 436A of the CrPC?
- A. It is not applicable to money laundering cases.
- B. It is applicable to money laundering cases.
- C. It can only be applied to cases under the Indian Penal Code.
- D. It is only applicable to civil cases.
- Answer: B. It is applicable to money laundering cases.
- According to Section 436A CrPC, when should an undertrial be released on bail?
- A. After spending one-fourth of the maximum sentence.
- B. After spending three-fourths of the maximum sentence.
- C. After spending half of the maximum sentence.
- D. After the trial has concluded.
- Answer: C. After spending half of the maximum sentence.
- Which Supreme Court judgment set the precedent that Section 436A CrPC applies to PMLA cases?
- A. Nikesh Tarachand Shah v. Union of India
- B. Vijay Madanlal Choudhary v. Union of India
- C. Kartar Singh v. State of Punjab
- D. Maneka Gandhi v. Union of India
- Answer: B. Vijay Madanlal Choudhary v. Union of India
- What does Section 45 of the PMLA require for an accused to be granted bail?
- A. Proof of no previous convictions.
- B. Evidence of financial solvency.
- C. Proof that there is no prima facie case against them and assurance that they will not commit any future offenses.
- D. A recommendation from the Enforcement Directorate.
- Answer: C. Proof that there is no prima facie case against them and assurance that they will not commit any future offenses.
- What was the Supreme Court’s ruling in Nikesh Tarachand Shah v. Union of India regarding Section 45 of the PMLA?
- A. The provisions were upheld as constitutional.
- B. The provisions were declared unconstitutional.
- C. The provisions were amended to be more stringent.
- D. The provisions were declared inapplicable to money laundering cases.
- Answer: B. The provisions were declared unconstitutional.
- What is the current status of the 2021 Supreme Court ruling on the PMLA?
- A. It has been overturned.
- B. It is under review but not stayed.
- C. It is permanently stayed.
- D. It is applicable only to future cases.
- Answer: B. It is under review but not stayed.