Accused Cannot Remain in Jail Indefinitely When PMLA Case Trial is Unlikely to Conclude Soon: Delhi HC Grants Bail [Read Order]

In a recent ruling, the Delhi High Court held that an accused cannot be kept in jail indefinitely in a money laundering case when the trial is unlikely to conclude within a reasonable time. The court granted bail to the accused, observing that he had already spent nearly five years in custody and that continued detention would be unjustified.

The case arose from proceedings initiated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA). The ED alleged that Deepak Ramnani assisted in handling and transferring money that was allegedly generated through a large extortion racket linked to Sukesh Chandrashekhar.

Deepak Ramnani was arrested in October 2021 and remained in custody for about four years and nine months. Seeking bail, The counsel argued that the maximum punishment under Section 4 of the PMLA is seven years and that he had already undergone more than half of that period as an undertrial. The counsel also argued that the trial had only recently reached the stage of framing charges and was unlikely to finish soon because of the large number of witnesses and documents involved.

The ED’s counsel opposed the bail plea and maintained that a prima facie case of money laundering existed against Deepak. However, it accepted that several co-accused had already been granted bail and that his case would have to be considered in light of those orders.

Justice Prateek Jalan observed that the prosecution proposed to examine 311 witnesses and that the trial was not likely to conclude in the near future. The court observed that if bail was denied, there was a real possibility that the accused could spend a substantial part or even the maximum period, of the prescribed sentence in custody before the trial ended.

The court also took note of Section 479 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) which provides relief to undertrials who have spent more than half of the maximum prescribed sentence in custody. It observed that this benefit applies to PMLA cases as well.

Considering the long period of incarceration, the slow progress of the trial and the fact that several co-accused had already secured bail, the Delhi High Court allowed the bail application and directed Deepak Ramnani's release on appropriate conditions. The court clarified that its observations were limited to the bail proceedings and would not affect the merits of the trial.

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