The provisions of S.45 of the PMLA are mandatory for bail considerations, overriding general provisions of the Code of Criminal Procedure.

1. Leave granted. Heard the learned counsel for the parties.

2. The High Court1 has not complied with the requirement of S.45 of the Prevention of Money - Laundering Act, 2002 (in short “the PMLA”). While granting bail, the High Court has failed to comply with the requirement of Condition (ii) of S.45 of the PMLA. This Court in Gautam Kundu v. Directorate of Enforcement ( 2015 (16) SCC 1 : 2016 (3) SCC (Cri) 603 ) has laid down thus: (SCC pp. 13-16, paras 26-30 & 34)
“26. The learned Solicitor General submitted that S.45 of PMLA refers only to the term “Special Court” and therefore has to be given restricted meaning. According to him, PMLA is a “Special Law” applicable to the subject of money - laundering, and deals with economic offenders and white - collar criminals. The object of PMLA is to prevent money laundering and to provide for confiscation of property derived from, or involved in, money - laundering. To enable the scheme of the Act, reliance was placed on various provisions of the PMLA. He further submitted that S.44 of the PMLA only confers jurisdiction on the Special Court to deal with offences under the PMLA. S.45 of PMLA makes the offence of money laundering cognizable and non - bailable and also provides that notwithstanding the provisions of the Criminal Procedure Code, 1973, no person accused of an offence punishable for a term of imprisonment of more than three years under Part A of the Schedule shall be released on bail or on his own bond, unless the Public Prosecutor has been given an opportunity to oppose the application for such release.
27. The learned Solicitor General lastly submitted that “money laundering” being an economic offence poses a serious threat to the national economy and national interest and committed with cool calculation and deliberate design with the motive of personal gain regardless of the consequences to the society. Hence, for money - launderers “jail is the rule and bail is an exception” which finds support from many landmark judgments of this Court.
28. Before dealing with the application for bail on merit, it is to be considered whether the provisions of S.45 of PMLA are binding on the High Court while considering the application for bail under S.439 of the Code of Criminal Procedure. There is no doubt that PMLA deals with the offence of money laundering and Parliament has enacted this law as per commitment of the country to the United Nations General Assembly. PMLA is a special statute enacted by Parliament for dealing with money laundering. S.5 of the Code of Criminal Procedure, 1973 clearly lays down that the provisions of the Code of Criminal Procedure will not affect any special statute or any local law. In other words, the provisions of any special statute will prevail over the general provisions of the Code of Criminal Procedure in case of any conflict.
29. S.45 of the PMLA starts with a non obstante clause which indicates that the provisions laid down in S.45 of PMLA will have overriding effect on the general provisions of the Code of Criminal Procedure in case of conflict between them. S.45 of PMLA imposes the following two conditions for grant of bail to any person accused of an offence punishable for a term of imprisonment of more than three years under Part A of the Schedule to PMLA:
(i) That the Prosecutor must be given an opportunity to oppose the application for bail; and
(ii) That the court must be satisfied that there are reasonable grounds for believing that the accused person is not guilty of such offence and that he is not likely to commit any offence while on bail.
30. The conditions specified under S.45 of PMLA are mandatory and need to be complied with which is further strengthened by the provisions of S.65 and also S.71 of PMLA. S.65 requires that the provisions of CrPC shall apply insofar as they are