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

πŸ”Ή 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.

πŸ”Ή 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.

πŸ”Ή 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).

πŸ”Ή 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:

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

πŸ”Ή 5️⃣ Important Practical Points

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

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