As per section 19 of PMLA, the Enforcement Directorate(ED) can’t arrest any accused under the Prevention of Money Laundering Act after the special court has taken cognisance of the complaint. The recent judgment of the Hon'ble Supreme Court on Thursday states that the ED can’t arrest an accused as per section 19 of the PMLA act once the special court has taken cognisance of the complaint. The ED has no power left to work on the accused after the cognisance taken by the special court. Furthermore, the court also said that if ED wants custody of such accused under the Prevention of Money Laundering Act, it will have to apply to the concerned court regarding the cases and the custody of the accused. The Hon’ble Court may grant custody to the ED or concerned officer if they satisfy the custodial interrogation needed for the case. The ED must provide a written reason to the court regarding the cases before acting accused arrest under the provision of the Prevention of Money Laundering Act, 2002.
The Supreme Court's judgment is a step in the right direction, ensuring procedural fairness to the accused. Many concerns still arise, but in the present framework, ED needs to go to court before the grounds of arrest.
Know About Section 19 of PMLA
Regarding the Prevention of Money Laundering Act of 2002, it is difficult for the accused to get bail as it fully aims to prevent money laundering crimes in India. Almost all the offences under the PMLA Act are cognisable and non-bailable, excluding the provision of anticipatory bail. Section 19 of the PMLA Act allows any authorised officer by the central government(ED) to have permission to arrest a person based on the material and the reason(in writing only) to suspect that the individual has committed an offence under the Prevention of Money Laundering Act. Any person guilty of a money laundering offence is liable to escape. In such cases, the authorised body may arrest the person by giving him the ground of arrest in writing.
The second provision under the PMLA highlights that a Director Deputy Director, or any Assitance Director authorised by the central government, should issue materials to the court of arrest ground involving oral communication to give complete transparency in certain ED arrests.
Moreover, the third provision of the Prevention of Money Laundering Act states that the accused must be taken to a special court, judicial magistrate, or metropolitan magistrate within 24 hours of arrest.
Conclusion
Getting bail under the provision of the Money Laundering Act of 2002 is difficult. It empowers the authorised official of the ED to arrest the accused under PMLA based on the material in their possession(providing a written and reasonable reason for offence to the respected court. To get detailed information about Section 19 of the PMLA Act, you must visit CA Manoj K Pahwa, who will provide detailed information on all your concerns about ED arrest under PMLA.