ED Can Provide Grounds of Arrest to Accused Within 24 Hours: SC

December 19, 2023

GS Paper II Polity

Context: The Supreme Court (SC) has clarified that the Enforcement Directorate (ED) need not furnish a person accused under the Prevention of Money Laundering Act (PMLA) a copy of the FIR with the grounds of detention, during the time of the arrest.

ED’s Duty: SC Ruling on Grounds of Arrest Under PMLA

Legal Question: A Situation where ED does not furnish a copy of FIR to the arrestee at the time of arrest renders the arrest illegal under Section 19 of the PMLA, 2002?

Section 19 of the PMLA, 2002: Section 19 of the Prevention of Money Laundering Act (PMLA) states that the accused must be informed of the grounds of arrest “as soon as may be.” Article 22 (1): It upholds the fundamental right of any person who is in custody to be informed as to why he has been arrested.

SC Clarification: SC said that if a person arrested is informed or made aware orally about the grounds of arrest at the time of his arrest, it complies with both Section 19 of the PMLA and Article 22(1) of the constitution.
Reasonable Period: A written communication of the grounds of arrest needs to be provided only within a “reasonable period” i.e. within 24 hours of the arrest.
Legal Precedent: The Supreme Court in Pankaj Bansal v. Union of India held that the Directorate of Enforcement (ED) must furnish the reasons for arrest to the accused in writing.

About PMLA Enactment: The Prevention of Money Laundering Act (PMLA), 2002 was enacted in January 2003

Objectives:

The PML Act seeks to combat money laundering in India
Control: To prevent and control money laundering
Power to confiscate: To confiscate and seize the property obtained from the laundered money
Other issues: To deal with any other issue connected with money laundering in India
Punishment: The Act also proposes punishment under sec.4.

Enforcement Directorate (ED)

Established: In 1956.
Headquarters: New Delhi.
Objectives: It is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA) and certain provisions under the Prevention of Money Laundering Act.

To read more about: Money laundering and PMLA

To read more about: Enforcement Directorate

News Source: The Hindu