"Supreme Court Ruling: ED Can't Arrest After Court Takes Cognisance"

The Supreme Court has ruled that once a special court takes cognizance of a complaint filed by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), the ED cannot arrest individuals. Additionally, if an accused appears before the special court after being summoned, they do not need to satisfy the stringent conditions for bail under Section 45 of the PMLA.

The bench clarified that an accused who appears before the special court by summons is not considered to be in custody, and therefore, does not need to fulfill the twin conditions for bail under Section 45 of the PMLA. If the ED seeks custody of an accused who appears after being summoned, it must apply to the special court, which will grant custody only if it finds that custodial interrogation is necessary.

The case arose from a Punjab and Haryana High Court order denying pre-arrest bail to several accused in a money laundering case related to an alleged land scam. The Supreme Court had earlier granted interim protection to the accused. Senior advocate Sidharth Luthra represented the accused, while additional solicitor general SV Raju appeared for the ED.

In summary, the Supreme Court's judgment imposes restrictions on the ED's power to arrest individuals in money laundering cases once a special court takes cognizance of the matter, and it clarifies the bail conditions for accused who appear before the court after being summoned.