High Court of Delhi Grants Bail: Woman Accused Exempted from Twin Conditions Under Section 45 PMLA

The Delhi High Court, in a significant ruling on bail jurisprudence regarding the Prevention of Money Laundering Act (PMLA), has granted regular bail to a woman accused of money laundering, emphasizing that the first proviso to Section 45 of the Act offers a critical relaxation of the stringent "twin conditions" for female applicants.

Background: A Decade-Old Dispute

The legal proceedings stem from a 2016 FIR involving allegations that co-accused Amit Gupta had duped individuals of approximately ₹6 crores under the guise of investment opportunities in film production. While the primary FIR was registered in 2016, the Directorate of Enforcement (DoE) initiated a separate PMLA investigation via an ECIR recorded in August 2025.

The prosecution alleged that the petitioner, Sandeepa Virk, participated in money laundering by utilizing a fake e-commerce website, receiving portions of the "proceeds of crime," and acquiring multiple immovable properties in Mumbai and Delhi. Conversely, the petitioner maintained that she was neither named in the original police charge-sheet nor summoned in subsequent private complaint proceedings, noting that the principal accused remains at large despite the passage of nine years.

Arguments: The Battle Over “Twin Conditions”

Counsel for the petitioner argued that as a woman, she is entitled to the benefit of the first proviso to Section 45(1) of the PMLA. They contended that in the absence of a prima facie case and given that the prosecution complaint against her was filed after long delays, her continued incarceration was punitive.

The DoE, however, challenged this, asserting that the PMLA is a distinct and independent statute. They argued that the proviso does not guarantee an automatic right to bail; rather, it requires the court to exercise discretion judiciously, considering the gravity of the economic offense, the alleged destruction of mobile phone evidence, and the petitioner's role in projecting illicit funds as untainted property.

Legal Analysis and the PMLA Proviso

The Court’s analysis hinged on the interpretation of Section 45(1) of the PMLA. Relying on the recent Supreme Court decision in Shashi Bala @ Shashi Bala Singh v. Directorate of Enforcement , the High Court reaffirmed that where a woman is an accused, the rigid constraints of the twin conditions—which often preclude bail unless there are reasonable grounds for believing the accused is not guilty—are relaxed.

Justice Swarana Kanta Sharma observed that the judicial system must weigh the individual’s status while ensuring the integrity of the PMLA's legislative intent. The Court noted that in this specific instance, the investigation was complete, the petitioner had been in custody for over four months, and the trial in the predicate offense remained stalled due to the principal accused’s status as a proclaimed offender.

Key Observations

The judgment offers several insights into the court’s reasoning for granting relief:

• "On its plain reading, the first proviso to sub-Section (1) of Section 45 operates as an exception to clause (ii) of sub-Section (1) of Section 45 of the PMLA. Therefore, when a woman applies for bail, the twin conditions in clause (ii) need not be satisfied."
• "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."
• "This Court finds no ground to further keep the applicant in judicial custody... [given] the fact that the trial will take time to conclude."
• "The argument that bail should be granted merely because the principal accused... has not been arrested is misconceived; and far from being a mitigating factor, the conduct of the principal accused highlights the gravity of the offence."

The Verdict and Its Future Impact

The Court granted the petitioner regular bail upon furnishing a personal bond of ₹2,00,000, along with strict conditions including the surrender of her passport and the requirement to remain reachable at all times.

This ruling serves as a vital reminder that while the PMLA provides robust mechanisms to combat money laundering, the legislative framework provides specific procedural conduits—such as the first proviso to Section 45—to balance these powers against individual rights, specifically for female applicants. For legal professionals, the case underscores the necessity of distinguishing between the rigorous requirements for general accused persons and the discretionary framework applicable to protected classes under the law.