Applicability of S.223 BNSS to PMLA Cases that Started Investigation Before July 1, 2024: Supreme Court Schedules Hearing on May 9
According to the Supreme Court, Section 223 (Examination of Complainant) of the BNSS, which mandates that the accused be given a chance to be heard before the magistrate considers a complaint, is a useful clause that helps avoid needless prosecutions
In case of applicability of section 223 Bharatiya Nagarik Suraksha Sanhita, 2023 ( BNSS ) for PMLA cases that started investigation before July 1 , 2024, the Supreme Court issued notice returnable on 9 May 2025 and stayed further proceedings in the complaint. Read More: NRI Taxation in India: Here’s What You Must Know in 2025 Section 200 of the Code of Criminal Procedure, 1973, which...
In case of applicability of section 223 Bharatiya Nagarik Suraksha Sanhita, 2023 ( BNSS ) for PMLA cases that started investigation before July 1 , 2024, the Supreme Court issued notice returnable on 9 May 2025 and stayed further proceedings in the complaint.
Read More: NRI Taxation in India: Here’s What You Must Know in 2025
Section 200 of the Code of Criminal Procedure, 1973, which did not require the accused to be given a chance to be heard before cognizance was taken, is replaced by Section 223 of the BNSS.
A firm and its executive, Kushal Aggarwal, filed the petition in response to a trial court decision that took cognizance of a money laundering accusation resulting from a conviction for cheating to obtain the Kesla North Coal Block in Chhattisgarh.
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The trial court took the Directorate of Enforcement's complaint seriously, summoned the Directorate, and decided that Section 223 of the BNSS would not apply because the investigation began before the BNSS went into effect on July 1, 2024. It further decided that the PMLA scheme did not grant the right to a hearing at the cognizance stage, and that the public servant who filed the complaint was carrying out official obligations.
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The accused is given substantive rights under Section 223 of the BNSS, not merely procedural ones, as both Supreme Court judges stressed during the hearing. "One of the most important rights conferred is the opportunity to request a recall of procedure. According to Justice Oka, it couldn't be procedural.
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Justice Oka stated that Section 223 of the BNSS would apply to this case. He explained that the accused has the ability to request a recall of proceedings under Section 223 once it has been granted.
The main question before the Court, according to Additional Solicitor General SV Raju, was whether the CrPC or the BNSS would regulate the proceedings. According to Justice Oka, the trial court procedures will need to be halted while the Court considers this matter. The legislature should have considered this outcome, Justice Oka retorted to the argument that adopting Section 223 of the BNSS would cause needless delays and that this was not the legislative objective.
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And regarding the submission that the BNSS does not apply to complaints under the Prevention of Money Laundering Act (PMLA), 2002 due to the special procedure under that Act, the court granted time to take decision.
A bench of Justice Abhay S Oka and Justice Ujjal Bhuyan issued notice returnable on 9 May 2025 and stayed further proceedings in the complaint against the petitioner until further orders.
To Read the full text of the Order CLICK HERE
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