‘Reason to believe’ for arrest under PMLA must be furnished to arrestee: SC

New Delhi: The Supreme Court ruled on Friday that individuals arrested under the Prevention of Money Laundering Act (PMLA) must be provided with “reason to believe” for their arrest, allowing them to contest their detention.

Justices Sanjiv Khanna and Dipankar Datta, who granted interim bail to Delhi Chief Minister Arvind Kejriwal in a money laundering case related to an alleged excise policy scam, emphasised that Section 19 of the PMLA includes strict safeguards to protect personal liberty. “We are concerned with the violation of personal liberty and the lawful exercise of arrest powers.The legality of an arrest is subject to judicial review,” the bench stated in its detailed 64-page ruling.

The justices clarified that the power to arrest under Section 19(1) is not intended for investigative purposes. They stressed that arrests should be delayed until sufficient evidence allows designated officers to justify their actions with written reasons indicating guilt.

Addressing bail conditions under Section 45 of the PMLA, the bench highlighted that the Enforcement Directorate’s (ED) opinion is paramount in bail decisions. “The ED should maintain consistency and uniformity in its conduct,” they asserted.

The court noted that Section 19 includes built-in checks requiring designated officers to document their “reasons to believe,” provide these reasons to the arrestee at the time of arrest, and ensure a copy of the arrest order and supporting materials are forwarded to the appropriate adjudicating authority for safekeeping.