Supreme Court on PMLA: Balancing Investigative Powers with the 'Necessity of Arrest'
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The Supreme Court has reinforced that the power of arrest under the PMLA must adhere to the 'necessity of arrest' principle to protect personal liberty under Article 21. The ruling mandates that investigative agencies like the ED must justify the deprivation of liberty, especially when an accused is cooperating.
The Supreme Court of India has recently raised critical questions regarding the Enforcement Directorate’s (ED) exercise of its arrest powers under the Prevention of Money Laundering Act (PMLA), 2002. The bench underscored that the deprivation of personal liberty, a fundamental right under Article 21, must not be an arbitrary exercise of power. The court’s scrutiny focuses on the 'necessity of arrest'—a principle that mandates investigative agencies to justify why an arrest is essential, particularly when an accused has been cooperating with the investigation.
Under Section 19 of the PMLA, the ED has the authority to arrest a person if it has "reasons to believe" (recorded in writing) that the individual is guilty of an offence. However, the Supreme Court clarified that the mere existence of the power to arrest does not justify its exercise in every instance. The agency must demonstrate that the arrest is necessary for the investigation, to prevent the tampering of evidence, or to ensure the accused does not flee. This distinction between the 'power to arrest' and the 'justification for arrest' is a vital safeguard against executive overreach.
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