On March 22nd, the Supreme Court of India reaffirmed the rights of individuals arrested under the Prevention of Money Laundering Act (PMLA), stressing the need for the Enforcement Directorate (ED) to adhere to constitutional norms.
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NEW DELHI: Today(on 22nd March),The Supreme Court of India has reiterated its position on the rights of individuals arrested under the Prevention of Money Laundering Act (PMLA).It emphasized the importance of ensuring that the Enforcement Directorate (ED) follows constitutional guidelines.
A bench comprising Justice AS Bopanna and PV Sanjay Kumar reviewed the Central government’s plea, which sought to overturn a previous ruling mandating the ED to provide written grounds of arrest to individuals detained in money laundering cases.
The justices stated-
“After thorough examination of the review petitions and associated documents, we have found no discernible error in the challenged order that would necessitate its reconsideration. Consequently, the review petitions are hereby dismissed.”
thereby affirming the court’s decision made on March 20.
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This ruling traces back to a pivotal judgment passed in October 2023, where the Supreme Court unequivocally declared that individuals arrested in connection with PMLA cases are entitled to be informed of the reasons for their detention. This decision underscored the necessity for compliance with Article 22(1) of the Indian Constitution, which safeguards individuals against arbitrary arrest and detention, and Section 19(1) of the PMLA.
The court emphasized the importance of written communication, stating-
“The grounds of arrest so furnished to accused persons must be in written form.”
This directive aims to eliminate ambiguity and ensure that the accused can fully comprehend the charges against them.
The court noted discrepancies in how authorities inform the accused of their arrest grounds. While some regions adhere to the protocol of providing written documentation, others merely verbalize these grounds, leading to potential disputes and a lack of transparency.
Moreover, the court remarked on the conduct expected of the ED, stating:
“The ED was anticipated to demonstrate impartiality in its actions, emphasizing that the Central agency should operate with utmost fairness and impartiality.”
This observation is a reminder of the balance that law enforcement agencies must maintain between rigorous investigation and respect for individual rights.
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In a subsequent development, another bench of the Supreme Court, comprising Justices Bela M Trivedi and Satish Chandra Sharma, further clarified the legal landscape by stating that informing the accused of the arrest grounds in writing within 24 hours would not contravene the PMLA. This judgment, rendered in December 2023, reinforces the court’s dedication to ensuring due process and transparency within the framework of the law.
Case Title:
Pankaj Bansal vs. Union of India
