Relaxation of Twin Conditions under Section 45 PMLA: Delhi High Court Grants Bail to Woman Accused

In a significant ruling concerning the application of the Prevention of Money Laundering Act (PMLA), the High Court of Delhi has granted regular bail to petitioner Sandeepa Virk. Presided over by Dr. Justice Swarana Kanta Sharma, the Court clarified the scope of the first proviso to Section 45(1) of the PMLA, emphasizing the legislative intent to provide relief to female accused individuals despite the stringent nature of money laundering statutes.

The Roots of the Dispute

The case traces back to FIR No. 91/2016, where the complainant alleged she was duped of approximately ₹6 crores by co-accused Amit Gupta and others under the guise of being cast as a lead actress in a film. While the DoE recorded an ECIR (Enforcement Case Information Report) against the petitioner in 2025, the petitioner contended that she was never charge-sheeted in the original predicate offense, nor was she held liable in subsequent private complaint proceedings. The DoE, however, alleged that the petitioner knowingly received a portion of these funds into her accounts and utilized them for luxury living and the acquisition of immovable properties.

Contested Arguments on Custody

The petitioner’s counsel argued that the arrest was arbitrary, occurring nine years after the alleged transactions and at a point when evidence collection was complete. Crucially, the defense highlighted that the petitioner is a woman, thereby triggering the protective proviso within Section 45 of the PMLA. They asserted that her continued incarceration, given the uncertainty of the predicate trial—where the primary accused remains a proclaimed offender—was punitive in nature.

Conversely, the Directorate of Enforcement argued that the offense of money laundering is a "distinct, independent, and continuing offense." The agency maintained that the transfer of over ₹1 crore into the petitioner’s accounts and the subsequent acquisition of properties in her name constituted a clear, tangible utilization of the proceeds of crime, irrespective of her status in the initial criminal case.

The Balancing Act: Legal Analysis

The Court’s analysis hinged on the interpretation of Section 45 of the PMLA. Citing the Supreme Court’s recent decision in Shashi Bala @ Shashi Bala Singh v. Directorate of Enforcement , Justice Swarana Kanta Sharma reaffirmed that the "twin conditions" for bail—which require the Court to be satisfied that there are reasonable grounds for believing the accused is not guilty—are relaxed for female applicants. The judgment underscored that this proviso is not merely technical but a vital safeguard for women within the legal system.

The Court noted: > "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, albeit keeping in view the nature and gravity of the allegations."

Key Observations

The judgment made several pivotal points: * "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." * "The present proceedings under the PMLA were initiated much later, with the ECIR being recorded only in the year 2025, almost a decade after the alleged transactions." * "Considering the cumulative effect of these circumstances... this Court finds no ground to further keep the applicant in judicial custody."

The Road Ahead

The High Court ultimately ordered the petitioner’s release upon furnishing a personal bond of ₹2,00,000 and two sureties, subject to strict conditions including the continuous activation of her mobile number and the surrender of her passport. By emphasizing the distinct nature of PMLA proceedings while respecting the statutory protections afforded to women, this judgment provides a crucial reference point for defense strategies in future money laundering cases where the applicant is not a primary beneficiary of the predicate offense. The ruling reinforces that even under the PMLA’s robust regulatory framework, the judiciary remains committed to ensuring that pre-trial detention does not become a tool for indefinite punitive incarceration.