Supreme Court Rules ED Cannot Directly Arrest Under PMLA

In a significant ruling, the Supreme Court declared that the Enforcement Directorate (ED) cannot arrest a person directly under the Prevention of Money Laundering Act (PMLA) once a special court takes cognizance of the complaint. Justices A S Oka and Ujjal Bhuyan emphasized that the ED must approach the special court if it seeks custody of an accused individual. The court underscored that custodial interrogation can only be permitted if the special court is convinced of its necessity, even if the accused was not initially arrested under Section 19 of the PMLA.

The Supreme Court outlined a procedural framework, stating that if the accused appears before the special court pursuant to a summons, they shall not be treated as in custody, obviating the need for bail application. Instead, the court may direct the accused to furnish bonds under Section 88 of the Code of Criminal Procedure. Moreover, special courts have the authority to grant exemptions from appearance upon sufficient cause shown by the accused, with the recourse to warrants if necessary.

The apex court also addressed whether executing a bond under Section 88 of the CrPC amounts to applying for bail, thus invoking the bail conditions under Section 45 of the PMLA. Section 45 stipulates stringent conditions for bail, including the requirement for the public prosecutor to oppose the release application and for the court to be satisfied of the accused’s innocence and non-recidivism potential. The ruling provides clarity on the procedural intricacies surrounding ED arrests and bail provisions under the PMLA.

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