In yet another landmark ruling on Wednesday, the Supreme Court of India reiterated the principle that “bail is the rule and jail the exception,” particularly in the context of money laundering cases. The court made this significant observation while granting bail to Prem Prakash, an alleged aide of Jharkhand Chief Minister Hemant Soren, in a money laundering case.
This decision follows closely on the heels of similar relief granted to Bharat Rashtra Samithi (BRS) leader K Kavitha and Aam Aadmi Party (AAP) leader Manish Sisodia in related cases.
The bench, comprising Justices BR Gavai and KV Viswanathan, stated that any incriminating statement made by an accused to an investigating officer while in custody under the Prevention of Money Laundering Act (PMLA) would not be admissible as evidence. The court stressed that accepting such statements as evidence would be “extremely unfair” and “against all canons of justice.”
Referring to the recent judgment in the Manish Sisodia case, the bench underscored that even under the PMLA, the presumption of bail remains a fundamental rule. The court pointed to Section 45 of the PMLA, which sets out the conditions for granting bail, noting that while these conditions must be satisfied, they do not override the basic principle of personal liberty.
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“Liberty of the individual is always the rule, and deprivation, by procedure established by law, the exception,” the bench remarked. The court further clarified that the “twin test” mentioned in Section 45, which requires prima facie satisfaction that the accused has not committed the offense and is unlikely to reoffend, does not negate the overarching principle that bail should not be withheld as a form of punishment.
In granting bail to Prem Prakash, the court observed that he was “not prima facie guilty of the offenses” and was unlikely to tamper with evidence. The bench emphasized that these observations were limited to the consideration of bail and should not influence the trial’s outcome.
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The Supreme Court’s decision comes amid increasing scrutiny of how central agencies handle money laundering cases. Just a day earlier, the court had granted bail to BRS leader K Kavitha, questioning the fairness of the prosecution’s approach and cautioning against selective targeting of individuals. The bench expressed concern over the state of affairs, particularly criticizing the practice of turning self-incriminating individuals into witnesses while selectively prosecuting others.
This series of rulings from the Supreme Court reinforces the judiciary’s commitment to upholding individual liberty and ensuring that bail is granted in accordance with the principles of justice, rather than being used as a tool for punishment.
