Bail under PMLA after Vijay Madanlal Choudhary v. Union of India

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Bail under PMLA after Vijay Madanlal Choudhary v. Union of India

(2022) 10 SCC 386 – Constitution Bench

🔹 1️⃣ Legal Framework – Section 45 PMLA

After Vijay Madanlal, Section 45 PMLA (Twin Conditions) stands fully upheld and constitutionally valid.

To grant bail, court must be satisfied that:

1️⃣ There are reasonable grounds to believe that the accused is not guilty of the offence;
2️⃣ The accused is not likely to commit any offence while on bail.

These are in addition to CrPC bail principles.

🔹 2️⃣ Effect of Vijay Madanlal Judgment

The Court upheld:

  • Validity of twin conditions

  • Reverse burden structure

  • ED’s arrest and attachment powers

Thus, PMLA bail is stricter than ordinary bail under CrPC.

🔹 3️⃣ How Courts Apply Bail Test Post-2022

Step 1 – Apply Section 45 Twin Conditions

Court must form prima facie satisfaction that accused is not guilty.

Step 2 – Apply Tripod Test

(Flight risk, tampering, influencing witnesses)

Step 3 – Article 21 Consideration

In cases of prolonged incarceration, constitutional courts may grant bail despite statutory rigour (especially when trial unlikely to conclude soon).

🔹 4️⃣ Interaction with Economic Offence Jurisprudence

Earlier cases like:

  • P. Chidambaram v. Directorate of Enforcement

  • Sanjay Chandra v. CBI

emphasized liberty even in economic offences.

Post Vijay Madanlal:

✔ Liberty remains important
✔ But statutory twin conditions are mandatory
✔ Courts cannot dilute Section 45 mechanically

🔹 5️⃣ Important Practical Points

• Bail harder at trial court stage
• High Courts/Supreme Court may intervene in prolonged detention
• Predicate offence status crucial
• Acquittal/discharge in predicate offence impacts PMLA case

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