Bombay High Court quashed an Enforcement Directorate arrest under PMLA Section 19, ruling custodial interrogation was unjustified due to absence of new evidence beyond what was already on record.
Bombay HC Sets Aside ED Arrest for Want of Fresh Material
The Bombay High Court has quashed an arrest by the Enforcement Directorate (ED) under Section 19 of the Prevention of Money Laundering Act, 2002, holding that no fresh evidence was brought to justify custodial interrogation. The Court set aside the remand orders and directed immediate release of the petitioner, emphasizing that PMLA powers cannot be exercised mechanically.
The Court underscored that Section 19 authorizes arrest only if the investigating officer forms a subjective satisfaction based on fresh and tangible material indicating involvement in money laundering. In this case, the material relied upon was already in the possession of the ED during prior summons and questioning.
"Arrest cannot be a coercive tool to extract compliance or confession when there is no new development,"the Bench observed.
The ruling reinforces procedural safeguards under PMLA and aligns with constitutional principles under Article 21. It serves as a precedent for challenging pre-trial detention where the ED fails to demonstrate new grounds for custody, particularly in cases involving prolonged investigation.
Citations
- PMLA Section 19
- Article 21, Constitution of India
