In Brief
The Union of India, through the Enforcement Directorate, challenged a High Court bail order in a money laundering case. The respondent Kanhaiya Prasad was accused of laundering proceeds from illegal mining operations. The Supreme Court held that the High Court failed to comply with the mandatory requirements of Section 45 of the Prevention of Money Laundering Act, 2002, which requires that before granting bail, courts must record findings that there are reasonable grounds for believing the accused is not guilty and will not commit offences while on bail. The Court set aside the bail order and remanded the case to the High Court for reconsideration by a different bench, emphasizing that money laundering is a grave offence requiring stringent procedural safeguards.
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