The observations were made while hearing the Arvind Kejriwal vs. Directorate of Enforcement (ED) case.
Section 19 of Prevention of Money Laundering Act (PMLA)
- Authority: Director, Deputy Director, Assistant Director or any other officer authorised in this behalf by the Central Government by general or special order.
- Basis for arrest: Material in possession or a reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of an offence punishable under the Act.
Key takeaways from the judgment
- Powers under section 19 of PMLA should be exercised judiciously and in line with constitutional safeguards.
- The conditions imposed by the legislature under PMLA must be subjected to judicial scrutiny if the arrestee challenges their arrest.
- Reasons to believe should be furnished to the arrestee.
Other judgments related to arresting power under PMLA
- Pankaj Bansal Vs Union of India and others (2023): importance of communication of the grounds of arrest, as mandated by Article 22(1) of the Constitution.
- V Senthil Balaji Vs State and others (2023): mandatory to record ‘reasons to believe’ in writing to ensure fairness and accountability.
About Prevention of Money Laundering Act ( 2002)
|
