Power of pre-arrest bail has to be exercised sparingly in economic offences: SC

Economic offences "affect the economic fabric of the society" and power to grant pre-arrest bail has to be exercised sparingly especially in such cases, the Supreme Court said Thursday while denying anticipatory bail to former finance minister P Chidambaram in the INX media money laundering case.

The top court said a case of money-laundering involves various stages of 'placement', 'layering' that is funds moved to several shell companies/institutions to conceal origin and it requires systematic and analysed investigation.

Economic offences stand as a different class and grant of anticipatory bail, particularly in such offences, would "definitely hamper the effective investigation", it said.

A bench of Justices R Banumathi and A S Bopanna referred to a 1987-verdict of apex court which had held that "economic offence is committed with deliberate design with an eye on personal profit regardless to the consequence to the community".

In its 57-page verdict, the bench said: "Power under Section 438 CrPC (anticipatory bail) being an extraordinary remedy, has to be exercised sparingly; more so, in cases of economic offences. Economic offences stand as a different class as they affect the economic fabric of the society."