PMLA: Supreme Court Rules ED Cannot Arrest After Special Court Takes Cognizance Of Complaint

In a landmark decision, the Supreme Court of India has significantly altered the arrest procedures under the Prevention of Money Laundering Act (PMLA). Justices Abhay S Oka and Ujjal Bhuyan, who formed the bench, have clarified that the Enforcement Directorate (ED) and its officers can no longer arrest an accused under Section 19 of the PMLA once the Special Court has taken cognizance of the complaint. Moving forward, to detain an accused, the ED must secure approval from the court.

 

In a move that offers some relief to those accused, the Court also determined that if an individual voluntarily appears before the court in response to a summons, they are not required to seek bail, effectively freeing them from the stringent dual conditions of Section 45 of the PMLA. Furthermore, the Court ruled that complaints filed under Section 44(1)(b) of the PMLA will now adhere to the provisions of the Criminal Procedure Code (Cr.P.C.). This means that in instances where the accused has not been arrested and the court takes cognizance, the typical procedure will be to summon the accused rather than issue a warrant.

 

These rulings are poised to bring more transparency and fairness to the process, ensuring that the rights of the accused are better protected while still enabling the authorities to carry out their duties.