Bail Granted: Delhi High Court Clarifies Relaxed Rigours of Section 45 PMLA for Women Accused

In a significant ruling for matrimonial and financial offense litigation, the Delhi High Court has granted regular bail to petitioner Sandeepa Virk, who was arrested by the Directorate of Enforcement (DoE) in a money laundering case. The judgment, delivered by Dr. Justice Swarana Kanta Sharma, underscores the importance of the Section 45 PMLA proviso concerning female accused and highlights the necessity of judicial scrutiny even in complex economic offense cases.

The Backdrop: A Decade-Long Legal Trail

The case originated from an FIR registered in 2016 for an alleged cheating scandal involving a promise of a lead role in a film, resulting in a loss of approximately ₹6 crores. While the predicate offence investigation spanned several years, the applicant—Sandeepa Virk—was notably never charge-sheeted by the police during the initial investigation nor summoned in a subsequent private complaint filed by the victim.

The Enforcement Directorate entered the fray in 2025, recording an ECIR nine years after the initial FIR and arresting the applicant shortly thereafter. The prosecution alleged that Virk laundered proceeds of crime through fake e-commerce activities and property acquisitions in Mumbai and Delhi.

Competing Legal Frontiers

The petitioner’s counsel argued that the arrest was arbitrary and selective, especially since the primary accused—a proclaimed offender—remains at large despite appearing through counsel in PMLA proceedings. Furthermore, the defense emphasized that as a woman, the applicant is entitled to the benefit of the first proviso to Section 45 of the PMLA, which allows for a more flexible interpretation of bail conditions.

The Directorate of Enforcement countered, arguing that money laundering is an independent, continuing offense. They asserted that the transfer of over ₹1 crore into the applicant’s accounts and the purchase of high-value properties constituted clear evidence of her involvement, rendering the "twin conditions" of Section 45 critical regardless of her gender.

Judicial Analysis: Balancing Gravity and Discretion

Justice Swarana Kanta Sharma engaged deeply with the evolving jurisprudence on the PMLA. Referencing the Supreme Court mandate in Shashi Bala @ Shashi Bala Singh vs. Directorate of Enforcement , the Court affirmed that the first proviso to Section 45 of the PMLA creates a clear exception to the stringent "twin conditions" for women.

The Court observed that while the DoE’s mandate is serious, the applicant had already been in judicial custody for over four months. The Court critically noted, "The allegation cannot be understood as one of concealment or projection of the entire amount of ₹5.5–6 crores, but is confined, prima facie, to the balance amount of about ₹2.8 crores."

Key Observations

• On the Section 45 Proviso: "Thus, it stands settled that in the case of a woman accused, the embargo of the twin conditions under Section 45(1)(ii) of the PMLA can be relaxed, and the application for bail can be considered on general principles governing grant of bail."
• On the Impact of Prior Investigations: "The record reflects that the applicant was not found culpable at the stage of police investigation, nor was any prima facie case found against her by the learned Magistrate in the private complaint proceedings."
• On Undue Incarceration: "Considering the cumulative effect of these circumstances... this Court finds no ground to further keep the applicant in judicial custody."

The Road Ahead

The Court ultimately granted regular bail upon the condition of a ₹2,00,000 personal bond and two sureties. The applicant is required to surrender her passport, maintain her mobile number as active, and continue to cooperate with the ongoing prosecution.

This judgment serves as a vital reminder that the PMLA, while designed with strict statutory safeguards, does not displace the inherent discretion of the courts to examine the merits of an individual’s detention, particularly when the applicant is a woman and the predicate offence investigation has historically exonerated them.