01 March 2024 Prevention Of Money Laundering Act >> Criminal Law  

A recent court order delves into two critical questions concerning arrests and bail procedures under India's Prevention of Money Laundering Act (PMLA).

The case centers on the power to arrest (Section 19) after a complaint is filed (Section 44) and acknowledged by a special court under the PMLA. In simpler terms, the court will decide if someone can be arrested after a money laundering case is initiated in the special court.

Furthermore, the court will consider the bail process. If someone appears in court following a summons, do they need to apply for bail under the standard Criminal Procedure Code (CrPC)? Or, will the stricter bail conditions mandated by Section 45 of the PMLA apply? Both parties involved can now submit written arguments with relevant legal citations to support their positions. The next hearing is scheduled for April 9th, 2024. Until then, any interim order previously granted by the court remains in effect.

Understanding the Legal Framework

• Section 44 (PMLA): This section allows for filing complaints regarding money laundering activities.
• Section 19 (PMLA): This section empowers authorities to make arrests in connection with money laundering offenses.
• Section 437 (CrPC): This section outlines the standard procedure for applying for bail in criminal cases.
• Section 45 (PMLA): This section establishes stricter conditions for granting bail in money laundering cases compared to the CrPC.