SC Says ED Can't Arrest Accused under PMLA after Special Court Takes Cognisance of Complaint
Moneylife Digital Team 16 May 2024
In a significant judgment, the Supreme Court held that the enforcement directorate (ED) and its officers cannot arrest an accused exercising powers under Section 19 of the Prevention of Money Laundering Act (PMLA) after the special court has taken cognisance of the complaint for money laundering.
 
"If the ED wants custody of such an accused, then they will have to apply to the special court," the bench of justice Abhay S Oka and justice Ujjal Bhuyan says.
 
"After cognisance is taken of the offence punishable under Section 4 of the PMLA based on a complaint under Section 44, the ED and its officers are powerless to exercise powers under Section 19 to arrest the person shown as accused in the complaint," the bench says.
 
Further, while hearing the application, the special court may permit custody only if it is satisfied that custodial interrogation is required even though the accused was never arrested under Section 19, the apex court clarified.
 
Further, the bench says an accused who is not arrested by ED during the money laundering probe but appears before the special court under the summons issued under PMLA need not satisfy stringent twin test for bail under Section 45 PMLA.
 
The bench was examining whether an accused who is not arrested during the period of investigation under PMLA would also be required to meet the law's stringent bail conditions if he appears before the court after the trial court takes cognisance of the ED complaint and summons such person.
Comments
Moneylife Exclusive: Serial Fraudster Dinesh Dalmia Strikes Again: Dupes Lenders of Nearly Rs200 Crore
Sucheta Dalal, 17 May 2024
Dinesh Dalmia, the notorious founder of the DSQ Software group, is back to his old tricks. After spending significant time in jail for fraud, stock manipulation and other legal transgressions in India and the US, he is once again...
IFIN's Ex-MD&CEO Ramesh Bawa Gets Bail from Bombay HC
Moneylife Digital Team 09 May 2024
The Bombay High Court (HC) recently granted bail on health grounds to Ramesh Bawa, former managing director and chief executive officer (MD&CEO) of IL&FS Financial Services Ltd (IFIN). As much as 90% of the loans advanced by IFIN, the...
Mahadev Scam Accused Ability Games Had Share Purchase Pact with Delta Corp: Report
Moneylife Digital Team 07 May 2024
The enforcement directorate (ED)’s investigation into the multi-crore Mahadev illegal betting application scam has revealed that one of the accused firms, Ability Games Ltd, entered into a share purchase agreement with Delta Corp Ltd—...
Naresh Goyal Gets 2 Months Interim Medical Bail in ED Case
Moneylife Digital Team 06 May 2024
The Bombay High Court on Monday granted two months interim medical bail to Jet Airways Ltd's founder Naresh Goyal in a money laundering case registered against him by the directorate of enforcement (ED), says a report. Mr Goyal is...
Array
Free Helpline
Legal Credit
Feedback