PMLA allows bail for sick and infirm: SC

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CategoryPolity

Last Updated16/10/2024

Granting interim bail to an accused in a money laundering case, the Supreme Court on Monday said that the Prevention of Money Laundering Act (PMLA) permits bail for those who are sick and infirm.

In a significant ruling, the Supreme Court of India on Monday granted interim bail to Amar Sadhuram Mulchandani, a 67-year-old accused in a money laundering case, citing health concerns under the provisions of the Prevention of Money Laundering Act (PMLA).
The bench, led by Chief Justice of India D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, highlighted the legal provision allowing bail for those who are sick or infirm.

The PMLA is known for its stringent provisions regarding the grant of bail, but it makes an exception for individuals suffering from severe health conditions. Section 45(1) of PMLA permits bail to those who are “sick or infirm” if a special court directs so.
The Supreme Court, in this case, emphasized that despite the rigorous nature of the PMLA, the judiciary must adhere to the legal framework, which mandates bail for such individuals.
CJI Chandrachud remarked, “However stringent PMLA is, as judges we have to operate in the four corners of the law. Law tells us that someone who is sick and infirm be granted bail. That he could be treated at a government hospital is no answer to what the statute says. Sick or infirm means you can be granted bail.”

Mulchandani, the former chairperson of Seva Vikas Cooperative Bank, was arrested by the Enforcement Directorate (ED) on July 1, 2023, for money laundering. His arrest was based on a predicate offense linked to financial irregularities. Following the dismissal of his bail plea by the Bombay High Court in August, Mulchandani moved the Supreme Court, seeking bail on medical grounds.
The court ordered a fresh medical evaluation at Grant Medical College and Sir J J Group of Hospitals, Mumbai. The evaluation report, prepared by a team of four medical experts, confirmed that Mulchandani’s health met the threshold required for being granted bail.

Mulchandani’s lawyer, Senior Advocate Mukul Rohatgi, argued that the petitioner was suffering from chronic kidney disease, which severely impaired his ability to perform daily activities. The medical evaluation supported these claims, and the court acknowledged the seriousness of his condition.