In a significant ruling of Sarla GUpta & Another Vs Directorate of Enforcement on May 7, 2025, the Supreme Court of India addressed the rights of an accused person to access documents in cases under the Prevention of Money Laundering Act (PMLA), 2002. The judgment, delivered by the Honourable Mr. Justice Abhay S. Oka, alongside the Honourable Mr. Justice Ahsanuddin Amanullah and the Honourable Mr. Justice Augustine George Masih, clarified the scope of document access at various stages of a PMLA trial, including bail applications.
The appeals, Sarla Gupta & Another v/s Directorate of Enforcement (Criminal Appeal Nos. 1622 of 2022, 730 of 2024), centered on whether the Directorate of Enforcement (ED) is obligated to provide the accused with documents beyond those it relies upon for prosecution.
Background of the Appeals:
Criminal Appeal No. 1622 of 2022 challenged a Delhi High Court order from July 22, 2019. The appellants, accused in an Enforcement Case Information Report (ECIR) filed by the ED based on a CBI FIR, sought copies of documents that were relied upon but not supplied, illegible documents, and documents collected during the investigation that were "suppressed". The Special Court had rejected this application, asserting that the prosecution only needs to supply relied-upon documents.
Criminal Appeal No. 730 of 2024 challenged a High Court judgment from November 18, 2022. In this case, the appellants sought a list and copies of documents seized by the ED during searches of their premises. The Special Court had rejected this, stating that the investigation was ongoing and charges were yet to be framed. The High Court subsequently ruled that while a list of unrelied-upon documents could be sought, copies were not required at the charge framing stage.
Key Legal Arguments and Court's Analysis:
The appellants argued that the right to receive documents under Section 207 of the Code of Criminal Procedure (CrPC) is broad and encompasses all documents collected during the investigation, not just those relied upon by the prosecution. They contended this right is fundamental to a fair trial under Article 21 of the Constitution of India and that CrPC provisions, including Section 207, apply to PMLA proceedings unless inconsistent with PMLA provisions. Furthermore, they highlighted the stringent bail conditions under Section 45(1)(ii) of the PMLA, which places the burden on the accused to prove their innocence, arguing this necessitates access to all relevant documents, including those not relied upon by the ED, even at the bail stage.
The ED, represented by the Additional Solicitor General, maintained that only relied-upon documents must be supplied to the accused at the stage of charge framing. They argued that the accused has no right to seek unrelied-upon documents at this stage and that such documents could be sought at the trial stage. The ED also pointed out that in PMLA cases, committal to Sessions Court is not required, and Special Courts do not possess inherent powers akin to the High Court under Section 482 of the CrPC.
The Supreme Court meticulously analyzed the relevant provisions, including Sections 17, 18, 20, 21, 24, 44, 45, 46, 65, and 71 of the PMLA, and Sections 91, 207, 208, 227, 233, and 243 of the CrPC (and their equivalents in the Bharatiya Nagarik Suraksha Sanhita, 2023).
Court's Conclusions and Directions:
The Supreme Court delivered several crucial conclusions:
Seized Documents and Records: The Court held that when records, instruments, or documents of title are seized under Sections 17 and 18 of the PMLA, the accused is entitled to true copies thereof.
Documents with Complaint: Upon cognizance being taken by a Special Court under Section 44(1)(b) of the PMLA, the accused must be provided with a copy of the complaint and all documents produced along with it, including statements recorded by the Special Judge, copies of statements under Section 50 of the PMLA, and documents produced subsequently by the ED until cognizance.
Unrelied-Upon Documents: The Court affirmed that a list of statements, documents, material objects, and exhibits not relied upon by the investigating officer must be furnished to the accused. This is to ensure the accused has knowledge of such materials and can apply for their production at an appropriate stage by invoking Section 91 of the CrPC.
Charge Framing Stage: While the accused is entitled to a list of unrelied-upon documents at the charge framing stage, they are ordinarily not entitled to seek copies of these documents at this specific stage. At this stage, the Court can only consider documents forming part of the complaint or supplementary complaint.
Defence Evidence Stage: At the stage of entering upon defence, an accused can apply for the production of any document or thing under Section 233(3) of the CrPC. This right is vital for a fair trial and to discharge the heavy burden placed on the accused by Section 24 of the PMLA. The Court can only deny such a request on limited grounds such as vexation, delay, or defeating the ends of justice.
Bail Applications under Section 45(1)(ii) PMLA: Given the stringent conditions for bail under Section 45(1)(ii) of the PMLA, which places the burden on the accused to demonstrate their innocence, the accused must be allowed to invoke Section 91 of the CrPC to seek production of unrelied-upon documents at the bail stage. The ED can object if disclosure prejudices an ongoing investigation, but the Court must examine the documents to be satisfied of such prejudice. This objection cannot be raised once the investigation is complete.
In light of these conclusions, the Supreme Court quashed and set aside the impugned judgments in both appeals. The ED was directed to provide soft or legible copies of all documents produced with the complaint in Criminal Appeal No. 1622 of 2022 within one month. In Criminal Appeal No. 730 of 2024, the ED was directed to supply true copies of the documents seized from the accused's premises within one month, with the option to provide soft copies.
Section 17, PREVENTION OF MONEY LAUNDERING ACT - 2002
Section 18, PREVENTION OF MONEY LAUNDERING ACT - 2002
Section 44, PREVENTION OF MONEY LAUNDERING ACT - 2002
Section 45, PREVENTION OF MONEY LAUNDERING ACT - 2002
Section 50, PREVENTION OF MONEY LAUNDERING ACT - 2002
PREVENTION OF MONEY LAUNDERING ACT, 2002
