Khushi Doshi
Published On: February 16, 2022 at 12:36 IST
SC stated orally that the fact that the PMLA Act provides for a maximum sentence of seven years in prison for money laundering does not lessen its gravity, and that the offence may be “graver” in the context that it impacts the national economy rather than just single person.
Justice C. T. Ravikumar added, “The offence also affects the integrity and sovereignty of the country.”
Justice Khanwilkar also observed, “If your argument is accepted and the legislature brings about a change and, instead of seven years, makes it life imprisonment, because of the nature of offence? The punishment being limited to 7 years does not automatically reduce the gravity of the offence.”
The Bench made the remark after Senior Advocate Amit Desai, who was representing the Petitioners in the PMLA batch of Cases, argued that because Section 4 of the Act caps the maximum sentence for money-laundering, as defined in Section 3, at 7 years, it is not a particularly serious crime from a legislative standpoint. “The legislative intent in the general law is that if it is up to 7 years, then the ordinarily principle is bail,” he argued.
The Defendants argument, according to Justice Khanwilkar, is bound to be that this is a special legislation, and that in the context in which it was introduced, these stringent conditions are required.
Justice Khanwilkar observed,
“A provision such as 19 is in larger public interest. Because if not arrested, they will leave the country. You want us to say that wait till the investigation is completed?”
In many PMLA cases, it is not just the main accused or the main beneficiary who is imprisoned for a long time, but also their employees and other people who have not benefited. If found guilty, a person may receive a three-month sentence, but they will spend two, three, or four years in prison. To protect the rights of under trial prisoners, there is a provision in the Criminal Procedure Code that states that if half of the sentence is completed, you will be granted bail.