ED can't arrest accused after special court has taken cognisance of complaint: SC

NEW DELHI: The Supreme Court ruled on Thursday that the Enforcement Directorate cannot arrest an accused under Section 19 of the Prevention of Money Laundering Act after a special court has taken cognizance of the complaint of money laundering.

A two-judge bench comprising Justices Abhay S. Oka and Ujjal Bhuyan stated that when an accused appears before a court in response to a summons, the agency must apply to the concerned court to obtain custody.

The bench clarified, "If the accused appears before the special court by summons issued by the court, it cannot be construed that he is in custody."

In its order, the top court specified, "An accused who appears before the court pursuant to a summons is not required to apply for bail, thus the twin conditions of Section 45 of PMLA are not applicable."

The twin conditions stipulate that when an accused in a money laundering case applies for bail, the court must first allow the public prosecutor to be heard, and bail can only be granted if the court is satisfied that the accused is not guilty and unlikely to commit a similar offence upon release.

The apex court's judgment addressed whether an accused in a money laundering case must meet the stringent twin test for bail, even in cases where the special court takes cognizance of the offence.