The recent Supreme Court ruling restricts the Enforcement Directorate from arresting accused individuals under the Prevention of Money Laundering Act once a Special Court has taken cognizance of the case. This landmark verdict questions the stringent bail conditions imposed on those facing money laundering charges, sparking legal debates and setting new precedents in criminal proceedings.
In a significant ruling, the Supreme Court has put a check on the Enforcement Directorate’s (ED) power to arrest an accused under Section 19 of the Prevention of Money Laundering Act (PMLA) after the Special Court takes cognizance of the case.
Now, if the ED wants custody of an accused post-cognizance, they must first seek permission from the Special Court. This decision raises questions on whether an accused in a money laundering case should face strict bail conditions even after the court acknowledges the offense.
The legal complexities in this case stem from a Punjab and Haryana High Court ruling that had denied pre-arrest bail to those accused in a money laundering case linked to an alleged land scam involving revenue officials.
Back in January, the Supreme Court had provided interim protection to the accused in this particular case. It’s worth noting that the apex court had previously struck down Section 45(1) of the PMLA in November 2017, only for it to be reinstated later with amendments.
One of the crucial aspects under consideration was whether furnishing a bond under Section 88 of the CrPC amounts to seeking bail under Section 45 of the PMLA. The case in question, titled Tarsem Lal v. Directorate of Enforcement Jalandhar Zonal Office, had the accused seeking anticipatory bail after appearing in court but being denied due to not meeting the bail conditions outlined in Section 45 of the PMLA.
The focus of the Supreme Court’s decision was on defining the ED’s authority to make arrests post-cognizance by the Special Court in cases falling under the PMLA. This ruling is likely to have far-reaching implications in cases involving money laundering allegations and the subsequent legal procedures that follow.
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