Supreme Court overrules Delhi court verdict to grant bail to Kavitha: Why it criticised the HC’s reasoning

Supreme Court overrules Delhi court verdict to grant bail to Kavitha: Why it criticised the HC’s reasoning

Subject: Polity

Sec: Legislation in news

Context:

The Supreme Court on Tuesday (August 27) granted bail to Bharat Rashtra Samithi (BRS) leader K Kavitha in the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) cases against her in the Delhi Excise policy case. The bench comprising Justices B R Gavai and K V Viswanathan criticised the Delhi High Court’s decision to deny the application of a key exception for women in the bail provisions of the Prevention of Money Laundering Act (PMLA) when it rejected Kavitha’s bail plea in April.

Law and exception

• Section 45 of the PMLA provides for bail on money laundering charges.
• This provision in the law, like the stringent bail standard in the Unlawful Activities (Prevention) Act, 1967 (UAPA), puts the onus on the accused to prove that there is no prima facie case against them while seeking bail.
• Section 45(1) : “No person accused of an offence under this Act shall be released on bail or on his own bond unless
  • the Public Prosecutor has been given an opportunity to oppose the application for such release; and
  • (ii) where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.”

Crucial Exception of Section 45 of PMLA:

• While Section 45 imposes strict criteria for bail, it also includes a vital exception, particularly for women.
• According to this exception, individuals who fall under certain categories, such as women, minors, or those who are sick or infirm, may be granted bail if directed by the Special Court.
• This provision mirrors exemptions found in the Indian Penal Code concerning women and minors.

Precedent Cited by Delhi Court:

• A notable legal precedent of Preeti Chandra v. Directorate of Enforcement (2023)covered the exception for women under Section 45 of PMLA.