In Brief
The Supreme Court allowed the appeal and granted bail to Prem Prakash in connection with an ED case under the Prevention of Money Laundering Act (PMLA), holding that statements recorded under Section 50 PMLA from an accused already in judicial custody in another case investigated by the same agency are inadmissible as they violate the protection under Section 25 of the Evidence Act. The Court found that the prosecution had not established the foundational facts required under Section 24 of PMLA to establish money-laundering offence. Applying the principle that "bail is the rule and jail is the exception," and noting the appellant's over one-year detention without trial commencement, the Court held the twin conditions under Section 45 of PMLA were satisfied and granted bail subject to conditions including Rs. 5 lakh bond with sureties, passport surrender, and fortnightly reporting.
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