Section 45 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 45 sets the conditions that must be met before a person accused of an offence under the Act can be released on bail or on his own bond. It also fixes who may make the complaint on which the Special Court takes cognizance, restricts police investigation, and declares every offence under the Act cognizable and non-bailable.
This article explains section 45 exactly as printed in the consolidated text of the Act consulted (amendments shown up to 1 August 2019). It says nothing on how any court has treated the section, and anyone facing an accusation should take legal dispute resolution advice on the papers. Later amendments and notifications should be checked, because bail law is an area where the position should be confirmed from the current official text.
No person accused of an offence under the Act may be released on bail or on his own bond unless (i) the Public Prosecutor has been given an opportunity to oppose and (ii) where he opposes, the court is satisfied that there are reasonable grounds for believing the accused is not guilty and is not likely to commit any offence while on bail. A person under sixteen years, a woman, or a sick or infirm person, or one accused of money-laundering a sum of less than one crore rupees, may be released on bail if the Special Court so directs. Cognizance of a section 4 offence needs a written complaint by the Director or an authorised officer.
Sub-section (1): the two conditions
Sub-section (1) begins "Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974)", so it overrides the Code on the point. No person accused of an offence under this Act shall be released on bail or on his own bond unless the two conditions are met:
| Condition | What is printed |
|---|---|
| (i) | The Public Prosecutor has been given a opportunity to oppose the application for such release (the text prints "a opportunity", a drafting slip, quoted as printed) |
| (ii) | Where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail |
The two are joined by "and". Condition (i) applies in every case. Condition (ii) is engaged "where the Public Prosecutor opposes". The text does not say what the court does if the Public Prosecutor, having been given the opportunity, does not oppose; this article does not supply an answer.
The footnote shows that the words "under this Act" in the opening part replaced, by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018), an earlier limit that referred to offences punishable for more than three years under Part A of the Schedule. That is history; the text now speaks of an offence "under this Act". The Schedule is explained in our articles on the Schedule.
The first proviso: persons who may be released if the Special Court so directs
A person who is under the age of sixteen years, or is a woman or is sick or infirm, or is accused either on his own or along with other co-accused of money-laundering a sum of less than one crore rupees, may be released on bail, if the Special Court so directs. Points to notice:
- It is a list of four categories joined by "or": age under sixteen, a woman, sick or infirm, and the sum of less than one crore rupees.
- The "less than one crore rupees" limb is stated as the sum accused "either on his own or along with other co-accused" of laundering. The footnote shows it was inserted by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).
- The proviso says "may be released ... if the Special Court so directs". It is a power of the Special Court, not an entitlement on the person's side.
The second proviso: who can complain
The Special Court shall not take cognizance of any offence punishable under section 4 except upon a complaint in writing made by (i) the Director; or (ii) any officer of the Central Government or a State Government authorised in writing in this behalf by the Central Government by a general or special order made in this behalf by that Government. Cognizance and the complaint route are also in section 44; see our article on section 44.
Sub-section (1A): police investigation
Notwithstanding anything in the Code of Criminal Procedure, 1973 or any other provision of the Act, no police officer shall investigate into an offence under the Act unless specifically authorised, by the Central Government by a general or special order, and, subject to such conditions as may be prescribed. The sub-section was inserted by Act 20 of 2005, s. 7 (w.e.f. 1-7-2005). The conditions are left to rules and are not printed in the Act; section 73(2)(ua) lists the rule-making power for them.
Sub-section (2): in addition to other limits
The limitation on granting of bail in sub-section (1) is in addition to the limitations under the Code of Criminal Procedure, 1973 or any other law for the time being in force on granting of bail. So the section 45 conditions do not replace those limits; they sit on top of them.
The Explanation: cognizable and non-bailable
The Explanation, inserted by Act 23 of 2019, s. 200 (w.e.f. 1-8-2019), says it is "for the removal of doubts". It clarifies that the expression "Offences to be cognizable and non-bailable" shall mean and shall be deemed to have always meant that all offences under the Act shall be cognizable offences and non-bailable offences, notwithstanding anything to the contrary in the Code of Criminal Procedure, 1973. Accordingly, the officers authorised under the Act are empowered to arrest an accused without warrant, subject to the fulfilment of conditions under section 19 and subject to the conditions enshrined under section 45. (The text prints "fulfillment".)
Section 19, which lays down the conditions for arrest, is explained in our article on section 19. Bail in general is covered in our guide on bailable and non-bailable offences and our note on drafting a bail application; those guides do not explain this Act's section.
What the section does not say
- It prints no form of bail application, no fee and no time limit for the Special Court's decision.
- It does not describe the standard of proof for the "reasonable grounds" test beyond those words.
- It does not name the High Court's powers; those are preserved separately by section 44(2).
- It makes no distinction among offences by the sum involved, except in the first proviso.
The Code of Criminal Procedure, 1973 is named several times; check the current procedural law for the corresponding provisions.
Worked examples
Example 1: a company director. Mr Anil Deshpande (invented), a director of a trading company, is accused of laundering a sum of several crore rupees. He applies for bail before the Special Court. The Public Prosecutor must be given an opportunity to oppose. If he opposes, condition (ii) applies: the court must be satisfied on both points, that there are reasonable grounds for believing he is not guilty, and that he is not likely to commit an offence while on bail. The first proviso does not help him on the sum, because the sum is not less than one crore rupees.
Example 2: a smaller sum. Ms Seema Kapoor (invented) is accused, with a co-accused, of laundering a total of less than one crore rupees. The first proviso allows the Special Court to direct release, but only "if the Special Court so directs". Whether it does so is for the Special Court.
Example 3: a police complaint. A police station registers a case alleging money-laundering. Under sub-section (1A) a police officer cannot investigate an offence under the Act unless specifically authorised by the Central Government by general or special order. Whether that authorisation exists is a fact to be checked from the notification.
For any application, the stage of the case and the sums alleged decide which of these paths is open.
Need help with bail or a complaint under the Act?
When a summons, arrest or complaint under the Act is in the picture, early advice on the stage reached and the sum alleged is worth more than any general reading of the section. Our team supports clients through legal dispute resolution, working from the actual papers.
Key takeaways
- Section 45(1) overrides the Code of Criminal Procedure, 1973 and sets two conditions for bail: an opportunity to the Public Prosecutor, and, where he opposes, the court's satisfaction on two points.
- The first proviso lets the Special Court direct release of a person under sixteen, a woman, a sick or infirm person, or one accused of laundering less than one crore rupees.
- Cognizance of a section 4 offence needs a written complaint by the Director or an authorised officer.
- No police officer may investigate an offence under the Act without specific authorisation by the Central Government.
- The bail limits are in addition to those in the Code and other laws.
- The Explanation makes all offences under the Act cognizable and non-bailable, with arrest subject to section 19 and to section 45.
Read next
- Section 19 PMLA: power to arrest
- Section 44 PMLA: offences triable by Special Courts
- Sections 43 and 46-47 PMLA: Special Courts and appeal
- Bailable vs non-bailable offences
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.