Supreme Court Grants Bail Under S. 45(1) PMLA Proviso Citing 'Sick or Infirm' Condition - 2024-10-14

Supreme Court Grants Interim Bail on Medical Grounds in PMLA Case

New Delhi: The Supreme Court of India has granted interim bail to an accused in a money laundering case, citing his severe medical conditions which bring him within the ambit of the 'sick or infirm' proviso under Section 45(1) of the Prevention of Money Laundering Act, 2002 (PMLA).

A bench comprising Chief Justice D.Y. Chandrachud , Justice J.B. Pardiwala , and Justice Manoj Misra ordered the release of Amar Sadhuram Mulchandani , who was arrested on July 1, 2023, in connection with an ECIR registered by the Directorate of Enforcement (ED) based on a predicate offence from 2018. Mulchandani had been in custody for approximately one year and three months.

Case Background

The petitioner had initially moved a second application for bail on medical grounds before the High Court of Judicature at Bombay, which was dismissed by an order dated August 9, 2024. Following this, the petitioner approached the Supreme Court.

On September 2, 2024, the Supreme Court issued notice in the matter. Subsequently, on October 4, 2024, the Court directed a fresh medical evaluation of the petitioner by a team of specialists at the Sir J J Group of Hospitals, Mumbai.

Medical Evaluation Highlights

A Medical Board, consisting of heads of the Departments of Neurology, Cardiology, Nephrology, and Ophthalmology, submitted a detailed report on October 10, 2024. The report outlined the petitioner's serious health issues:

• Neurology: Severe bilateral limb weakness and paresthesias due to diabetic neuropathy, requiring daily physiotherapy and assistance for daily activities.
• Cardiology: Known case of diabetes, hypertension, chronic kidney disease, and Ischemic heart disease. The report noted a worsening of cardiac function compared to previous reports and symptoms of dyspnea on exertion, advising immediate cardiac evaluation including coronary angiography.
• Nephrology: Chronic Kidney Disease Stage IV with a GFR of 18.5 ml/minute and uncontrolled blood sugars. This is a progressive condition requiring strict glycemic control, renal diet, and regular medication.
• Ophthalmology: Proliferative diabetic retinopathy in both eyes resulting in significantly reduced vision (finger counting at 1 meter in the right eye, 6/18 in the left eye). The petitioner was scheduled for an intravitreal Anti-VEGF injection for the left eye.

The Medical Board's opinion concluded that the patient has "severe Diabetic neuropathy with chronic kidney disease stage IV with uncontrolled blood sugars with ischemic heart disease with proliferative diabetic retinopathy," requires regular medication, assistance for daily living, and continuous follow-up with multiple specialists.

Court's Reasoning and Decision

The Supreme Court highlighted that the proviso to Section 45(1) of the PMLA specifically allows for the release on bail of a person who "is sick or infirm" if the Special Court so directs.

Considering the petitioner's age (67 years), the duration of custody (nearly a year and three months), and most significantly, the comprehensive medical evaluation report from Sir J J Group of Hospitals, the Court found that the petitioner's condition fulfilled the necessary threshold for being granted bail under this proviso.

The Court, therefore, directed that the petitioner, Amar Sadhuram Mulchandani , be released on interim bail. The terms and conditions of the interim bail are to be imposed by the Special Court dealing with ECIR/MBZO-II/10/2021.

The Special Leave Petition was accordingly disposed of.

This decision underscores the significance of the 'sick or infirm' proviso in Section 45(1) of the PMLA, providing a crucial exception to the stringent bail conditions imposed by the Act based on verified medical grounds.