SC backs ED powers under PMLA, says power to arrest not arbitrary

The Supreme Court on Wednesday backed the Enforcement Directorates powers under the Prevention of Money Laundering Act saying Section 19 that deals with the power to arrest does not suffer from the vice of arbitrarinessUpholding the validity of some provisions of the PMLA a bench headed by Justice A M Khanwilkar also said Section 5 of the Act relating to the attachment of property of those involved in money laundering is constitutionally validThe apex court said the supply of Enforcement Case Information Report ECIR in every case to the person concerned is not mandatory The ECIR is the EDs equivalent of a police FIRThe bench also comprising Justices Dinesh Maheshwari and C T Ravikumar said it is enough if the ED discloses grounds at the time of arrestRejecting the challenge to the constitutional validity of Section 19 of the PMLA Act 2002 the apex court said The challenge to the constitutional validity of Section 19 of the 2002 Act is also rejected There are stringent safeguards provided in Section 19 The provision does not suffer from the vice of arbitrarinessA special court can look into the relevant records presented by the ED when the arrested person is produced before it the Supreme Court said This will answer the need for the persons continued detention in connection with the alleged offence of money laundering it saidSection 5 is constitutionally valid It provides for a balancing arrangement to secure the interest of the person as also ensures that proceeds of crime remain available to be dealt with in the manner provided under the Act the bench said while pronouncing the verdictThe top court delivered its verdict on a batch of petitions on the interpretation of certain provisions of the PMLADuring the hearing the apex court deliberated on Section 45 of the Act as well as Section 436A of the Code of Criminal Procedure CrPC and also on balancing the rights of the accusedWhile Section 45 of the PMLA deals with the aspect of offences to be cognisable and nonbailable Section 436A of the CrPC deals with the maximum period for which an undertrial prisoner can be detainedThe apex court also heard arguments on Section 19 of the PMLA which deals with the aspect of power to arrest as well as Section 3 that provides the definition of a money laundering offenceThe Centre had earlier told the apex court that 4850 cases have been taken up for investigation under the PMLA in the last 17 years and proceeds of crime of Rs 98368 crore identified and attached under provisions of the lawThe government had told the court that investigation in these offences was carried out under the PMLA including 2883 searchesSolicitor General Tushar Mehta had said out of the Rs 98368 crore identified and attached proceeds of crime of Rs 55899 crore have been confirmed by the adjudicating authorityThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever