Supreme Court upholds ED's power to arrest in money laundering cases

New Delhi: The Supreme Court, on Wednesday, upheld the provisions of Prevention of Money Laundering Act, 2002 which relate to the power of arrest, attachment and search and seizure conferred on the Enforcement Directorate.

The Court upheld the constitutionality of the provisions of Sections 5, 8(4), 15, 17 and 19 of the PMLA, which relate to the powers of ED's power of arrest, attachment, search and seizure.

The Court also upheld the reverse burden of proof 19 of the PMLA, which relate to the powers of ED's power of arrest, attachment, search and seizure. The Court also upheld the reverse burden of proof under Section 24 of the Act and said that it has "reasonable nexus" with the objects of the Act.

ED Officials not police officers; ECIR not FIR

The Court also held that the ED officials are not "police officials" and hence the statements recorded by them under Section 50 of the Act are not hit by Article 20(3) of the Constitution, which guarantees the fundamental right against self-incrimination. The punishment of a fine or arrest for giving false information cannot be construed as a compulsion to give a statement. Section 50 procedure is in the nature of an inquiry, not an investigation.

The Supreme Court on Wednesday upheld the validity of certain provisions of the Prevention of Money Laundering Act (PMLA) and said it is not mandatory to give an Enforcement Case Information Report (ECIR) in every case to the person concerned.

It is enough if the Enforcement Directorate (ED) discloses grounds at the time of arrest, said a bench headed by Justice A M Khanwilkar.

The top court delivered its verdict on a batch of petitions concerning the interpretation of certain provisions of the PMLA.