Bail Under PMLA May Be Granted Where Alleged Proceeds of Crime Fall Substantially Below Statutory Threshold

The petitioner sought regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, regarding a money-laundering case (ECIR/STF/17/2022) initiated by the Enforcement Directorate (ED)

The case originated from an NIA FIR alleging that the Popular Front of India (PFI) conspired to raise funds for terrorist activities

The ED alleged that the Social Democratic Party of India (SDPI) acted as a front for laundering PFI’s proceeds of crime

The petitioner, a physical education trainer for PFI, was accused of "layering" proceeds by depositing cash into third-party accounts (Rajik Mohammad Anifa and Mohd. Rila) to be transferred to SDPI as legitimate donations

He was arrested on March 20, 2025, and named as Accused No. 30 in the 7th Supplementary Prosecution Complaint

The court primarily applied Section 45 of the PMLA, which mandates "twin conditions" for bail—that there are reasonable grounds to believe the accused is not guilty and unlikely to commit an offence while on bail

It utilized the proviso to Section 45(1), which allows for a less rigorous application of these conditions if the relevant amount is less than one crore rupees

The court also relied on the definition of "proceeds of crime" under Section 3 of the PMLA, emphasizing that funds must be linked to a scheduled offence

and referenced the principle of parity and the right to personal liberty in cases of prolonged incarceration

The court found that the ED failed to prima facie establish how the funds collected by SDPI constituted "proceeds of crime" derived from a scheduled offence

It noted that the petitioner’s transactions (totaling ₹3.15 lacs) were minuscule compared to the total ₹32.94 crores alleged, and fell significantly below the ₹1 crore threshold in the Section 45 proviso, warranting a "watered-down" application of the twin conditions

The court observed that the petitioner’s role as a trainer and his contact details using "PFI" were not inherently incriminating

Furthermore, the court highlighted that the petitioner had been in custody for over 14 months while the trial remained at the stage of arguments on charge, involving 250 witnesses and 600 documents, making a swift conclusion unlikely

It held that the petitioner met the requirements of Section 45 of the PMLA, citing the small quantum of alleged laundering, the delay in arraying him as an accused, the principle of parity with co-accused Moideen Kutty K, and the length of his pre-trial incarceration

Bail was granted subject to a personal bond of ₹50,000, surrender of passport, and conditions to prevent witness tampering