What was the main question before the court?

Whether the second bail under the PMLA could be granted to Manish Sisodia considering delay, humanitarian need, and parity with co-accused.

Why did the court reject delay as a ground?

The court found the accused contributed to the delay through multiple applications; therefore the delay was not attributable to the prosecution.

Did the court accept humanitarian grounds?

No. The court held the applicant’s spouse’s illness was long-standing and stable, with caregiving available; no immediate emergency existed.

Does parity with co-accused guarantee bail?

No. Parity depends on comparable roles and circumstances. The court said the applicant’s role and delay conduct were distinct.

Which law controlled the bail test?

Section 45 of the Prevention of Money Laundering Act (PMLA), which imposes strict twin conditions for bail.

Manish Sisodia v. Directorate of Enforcement (2024)

Classroom-style explainer for students and practitioners.

PMLA Money Laundering Special Court (PMLA), New Delhi 27 Aug 2025 Author: Gulzar Hashmi India 7 min read

— Single Judge Criminal Law • Anti-Corruption • PMLA

PRIMARY_KEYWORDS: PMLA bail, Delhi excise policy, delay in trial SECONDARY_KEYWORDS: Section 45 PMLA, humanitarian grounds, parity PUBLISH_DATE: 27-Aug-2025

Quick Summary

This case is about Manish Sisodia’s second bail request in a money-laundering matter linked to Delhi’s 2021–22 excise policy. He argued for bail due to delay, Supreme Court liberty, his wife’s illness, and parity with a co-accused. The Special Court held that the defence itself caused much of the delay, the Supreme Court’s liberty was conditional, humanitarian need was not urgent, and parity did not apply. As the strict test under Section 45 of the PMLA was not met, both regular and interim bail were refused.

Issues

Does prolonged pre-trial custody, without trial starting, justify bail under the PMLA?
Who is responsible for delay—the prosecution/court, or the accused?
What is the scope of the Supreme Court’s liberty to move a fresh bail plea in case of “unreasonable delay”?
Do the applicant’s family health circumstances warrant interim bail?
Can parity with a co-accused, who received bail, extend to the applicant?

Rules

PMLA, Section 45 (Twin Conditions): Court must be satisfied that (1) there are reasonable grounds to believe the accused is not guilty, and (2) the accused is unlikely to commit any offence while on bail.
Delay Principle: Bail may be considered if delay is undue and not caused by the accused.
Humanitarian/Medical Bail: Requires pressing medical urgency not addressable within custody arrangements.
Parity: Must be based on comparable role, evidence, and conduct; parity is not automatic.

Facts (Timeline)

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Case timeline illustration for Delhi excise money laundering matter

Mar 9, 2023: Arrest in money-laundering probe tied to Delhi’s excise policy (2021–22). Judicial custody from Mar 22, 2023.

Aug 17, 2023: Predicate CBI FIR; ED ECIR follows. Allegations include policy loopholes, inflated margins (5%→12%), kickbacks (~₹90–100 cr), and use in campaign funding.

Apr 28 & Jul 3, 2023: Trial court and Delhi High Court dismiss first bail bid.

Oct 30, 2023: Supreme Court dismisses appeals; allows fresh bail if delay is unreasonable and not defence-caused.

2023–2024: Multiple defence applications (including 13 post-SC order). Court notes 135 applications by various accused overall.

Second Bail Application: Grounds—delay, SC liberty, spouse’s illness (Multiple Sclerosis), and parity with co-accused (Benoy Babu).

Arguments

Appellant (Sisodia)

Long custody; trial not begun—bail justified.
SC allowed fresh bail if delay is unreasonable.
Wife’s Multiple Sclerosis needs his care—seek interim bail.
Parity with co-accused who got bail.

Respondent (ED)

Defence filed many applications—delay is defence-made.
SC liberty is conditional; not a free pass.
No urgent medical emergency; caregiving exists at home.
Roles differ; parity not attracted.
Section 45 twin conditions not satisfied.

Judgment

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The court dismissed both regular and interim bail. It found that the defence contributed to case delay; hence the SC’s conditional liberty did not assist. Humanitarian grounds were not urgent, with stable condition and family support available. Parity was rejected due to distinct roles and the defence’s delay conduct. The strict Section 45 PMLA test remained unmet at the preliminary stage of trial.

Ratio Decidendi

Delay cannot support bail when the accused substantially causes it.
SC’s permission for a fresh bail plea is triggered only by unreasonable, non-defence-caused delay.
Humanitarian bail requires immediate, compelling medical need not otherwise manageable.
Parity is fact-specific; different roles and conduct defeat parity.
PMLA Section 45’s twin conditions remain the controlling threshold.

Why It Matters

For PMLA bail, courts examine the source of delay, not just its length. A humanitarian request must show urgency. Parity is not a shortcut; the role and record of each accused matter. The case underscores how Section 45 keeps a high bar even at the pre-trial stage.

Key Takeaways

Delay helps only if not caused by the defence.
Supreme Court “liberty” for fresh bail is conditional.
Humanitarian grounds need immediacy and necessity.
Parity demands comparable roles and facts.
Section 45 PMLA’s twin test dominates bail decisions.

Mnemonic + 3-Step Hook

Mnemonic: D-L-A-P-T — Defence Delay • SC Liberty (conditional) • Acute Need (missing) • Parity (no) • Twin Conditions (not met).

Spot who caused delay.
Check urgency for humanitarian plea.
Test Section 45 twin conditions.

IRAC Outline

Issue

Should bail (regular/interim) be granted under PMLA given delay, SC liberty, spouse’s illness, and parity?

Rule

Section 45 PMLA twin conditions; delay principle (non-accused-caused); strict test for humanitarian bail; parity only on like facts.

Application

Defence caused delay; SC liberty not triggered; illness stable with caregiver; different role from co-accused; twin conditions not satisfied.

Conclusion

Bail refused—both regular and interim applications dismissed.

Glossary

PMLA: Prevention of Money Laundering Act, India’s anti-laundering law.
Twin Conditions: Stricter bail test under Section 45—“not guilty” view + “no further offence” likelihood.
Parity: Seeking similar relief as a co-accused with truly comparable facts.
Humanitarian Bail: Temporary release for urgent, compelling medical/family reasons.