In a recent ruling, the Supreme Court has upheld the necessity for individuals arrested in money laundering cases to be furnished with written grounds for their arrest. Rejecting a plea by the Central government to review a judgment, the Court emphasized the constitutional and statutory right of accused persons to be informed of the reasons behind their arrest. 

The decision, made by a bench of Justices AS Bopanna and PV Sanjay Kumar, reaffirmed the importance of procedural fairness in such cases.

The verdict, issued in October 2023, underscored that a mere verbal communication of the grounds of arrest is insufficient. Instead, the Court stressed the need for these reasons to be provided in writing, ensuring clarity and transparency in the process. This requirement, rooted in Article 22(1) of the Constitution and Section 19(1) of the Prevention of Money Laundering Act (PMLA), aims to safeguard the rights of the accused.

Furthermore, the Court emphasized that disclosing the grounds of arrest not only informs the arrested individual of the charges against them but also enables them to seek legal counsel and pursue bail effectively. By providing written documentation, the risk of disputes regarding the communication of grounds of arrest is mitigated, promoting accountability and fairness in law enforcement practices.

Moreover, the Supreme Court admonished the Enforcement Directorate (ED) to exercise discretion and fairness in its conduct, cautioning against any vindictive actions. This directive underscores the importance of upholding the highest standards of impartiality and integrity in the enforcement of laws, particularly in sensitive cases involving financial crimes.

Interestingly, in a subsequent ruling delivered in December 2023 by a different bench comprising Justices Bela M Trivedi and Satish Chandra Sharma, it was suggested that the ED could comply with the requirement of informing the accused about the grounds of arrest within 24 hours in writing, without violating the provisions of the PMLA. This nuanced interpretation reflects ongoing discussions and debates surrounding the implementation of legal procedures in money laundering cases.

Case: Union of India and ors vs. Pankaj Bansal,

REVIEW PETITION (CRIMINAL) NOS. OF 2024 DIARY NO. 50448 OF 2023 IN CRIMINAL APPEAL NOS.3051-3052 OF 2023.

Click to read/download order.