- In its judgment in the case of Tarsem Lal versus the ED, challenging a Punjab and Haryana High Court decision that denied him anticipatory bail, the Supreme Court limits the power of the ED to arrest individuals accused under the PMLA.
| The twin conditions of bail under Section 45 of the PMLAThe person has to prove in court that he or she is prima facie innocent of the offence. The accused should be able to convince the judge he would not commit any offence while on bail. |
An accused is presumed to be not in custody if he appears in court on a summons. It gives a fillip to the right to personal liberty of a person.
- If an accused does not appear after a summons is served, the special court could issue a bailable warrant followed by a non-bailable one.
- ED would have to separately apply for custody of a person who appears in court.
| Stringent provisions of the Prevention of Money Laundering Act, 2002Power to Arrest (Section 19): Authority to arrest individuals based on mere suspicion of involvement in money laundering, without the need for a warrant.Burden of Proof (Section 24): The onus of proving innocence lies on the accused, reversing the general principle of ‘innocent until proven guilty.’Attachment of Property (Section 5): ED can provisionally attach properties suspected of money laundering for up to 180 days, even before conviction.Powers to Summon and Question (Section 50): ED has the authority to summon individuals for questioning and require them to produce documents. |
ED may arrest a person not shown as an accused in the complaint filed under Section 44(1)(b) of the PMLA, provided the requirements of Section 19 (procedures of arrest) under the Act were fulfilled.
Dig Deeper: Read about the role of the Enforcement Directorate beyond PMLA.
