Can't allow ED to use Section 45 PMLA to jail persons without trial: Supreme Court in Senthil Balaji order

The Supreme Court on Thursday said that constitutional courts cannot allow Enforcement Directorate (ED) to use provisions like Section 45 of Prevention of Money Laundering (PMLA) as a tool to put accused persons behind bars as undertrials for long without trial [V Senthil Balaji v. Deputy Director]..Section 45 of PMLA lays down twin conditions which need to be satisfied for grant of bail in money laundering cases. While granting bail to former Tamil Nadu minister V Senthil Balaji in connection with his June 2023 arrest in a money-laundering case, a division bench of Justice Abhay S Oka and Justice Augustine George Masih was of the view that if constitutional courts do not exercise their jurisdiction in such cases, the rights of the undertrials under Article 21 of Constitution of India will be defeated."The Constitutional Courts have to bear in mind while dealing with the cases under the PMLA that, except in a few exceptional cases, the maximum sentence can be of seven years. The Constitutional Courts cannot allow provisions like Section 45(1)(ii) to become instruments in the hands of the ED to continue incarceration for a long time when there is no possibility of a trial of the scheduled offence and the PMLA offence concluding within a reasonable time," the Court stated.The Court said that expeditious disposal of trial is warranted in cases arising out of statutes like PMLA which lay down higher threshold for the grant of bail."The requirement of expeditious disposal of cases must be read into these statutes. Inordinate delay in the conclusion of the trial and the higher threshold for the grant of bail cannot go together. It is a wellsettled principle of our criminal jurisprudence that “bail is the rule, and jail is the exception.” These stringent provisions regarding the grant of bail, such as Section 45(1)(iii) of the PMLA, cannot become a tool which can be used to incarcerate the accused without trial for an unreasonably long time," the Court emphasised..The Court expressed concern over the long incarceration of Balaji for 15 months and said that since the trial in PMLA case or scheduled offence is not likely to be completed in three or four years or more, Balaji's further detention will violate his right to speedy trial under Article 21."The appellant has been incarcerated for 15 months or more for the offence punishable under the PMLA. In the facts of the case, the trial of the scheduled offences and, consequently, the PMLA offence is not likely to be completed in three to four years or even more. If the appellant's detention is continued, it will amount to an infringement of his fundamental right under Article 21 of the Constitution of India of speedy trial," the Court said.The Court also clarified that if the delay in trial of scheduled offence or offence under PMLA is attributed to accused, constitutional courts can always decline to exercise their jurisdiction..Balaji approached the top court for bail after the Madras High Court dismissed his bail application on February 28.The Dravida Munnetra Kazhagam (DMK) leader was arrested by the ED in the money laundering case on June 14, 2023.The case against him stems from alleged irregularities in the appointment of bus conductors in the Tamil Nadu transport department, as well as the appointment of drivers and junior engineers.The charges are from the time of his tenure as transport minister for the All India Anna Dravida Munnetra Kazhagam (AIADMK) government from 2011 to 2015.His bail application was rejected by a sessions court in Chennai on three previous occasions..Senior Advocates Mukul Rohatgi and Sidharth Luthra appeared for Balaji. Solicitor General (SG) Tushar Mehta and special counsel Zoheb Hossain represented ED..[Read Judgment]