Patna HC grant Anticipatory bail to PMLA Accused Apprehending Arrest based on SC Order [Read Order]

The Patna High Court has granted anticipatory bail to a petitioner apprehending arrest in connection with a case registered under the Prevention of Money Laundering Act (PMLA), in line with supreme court order. 

The petitioner was being investigated under ECIR dated 27.12.2016 for offences punishable under Sections 3 and 4 of the PMLA, which stemmed from a predicate FIR lodged in 2013.

During the hearing, the petitioner’s counsel submitted that the ED had called the petitioner multiple times during the course of investigation from 2016 until the complaint was filed in 2022 and that he had fully cooperated throughout.

It was submitted that since ED during the course of investigation never felt the need of arresting the petitioner whether it would be prudent for this Court to send the petitioner to jail based on cognizance which came to be taken based on the complaint which was filed by the ED after investigation in the year 2022.

Worried About SME IPO Pitfalls? Gain Clarity with This Advanced Course! Register Now

The petitioner’s counsel relied on the Supreme Court’s judgment in Tarsem Lal vs. Directorate of Enforcement, Jalandhar Zonal Office, contended that once cognizance is taken under Section 44(1)(b) of the PMLA and the accused was not arrested during the investigation, the ED cannot arrest the person without first seeking permission from the Special Court. It was further argued that the current matter is squarely covered by the said Supreme Court ruling, and the trial court must proceed accordingly.

The Enforcement Directorate’s counsel was unable to counter the petitioner’s argument that the ED did not invoke its powers under Section 19 of the PMLA to arrest the petitioner prior to cognizance. Observing this, the High Court held that the ED loses its power to arrest under such circumstances unless permitted by the court.

Accordingly, the bench of Justice Satyavrat Verma, granted the  anticipatory bail application according to the decision of Supreme Court in Tarsem Lal judgment and directed the trial court to adhere strictly to the guidelines laid down in the said ruling.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates