Case Note & Summary
The Supreme Court heard an appeal by Arvind Kejriwal challenging his arrest by the Directorate of Enforcement (DoE) under Section 19 of the Prevention of Money Laundering Act, 2002 (PML Act). The arrest was made on 21.03.2024 in connection with the Delhi excise policy case, where the CBI had registered an FIR for corruption and the DoE had initiated a money laundering investigation. Kejriwal was not named in the initial chargesheets but was later named in the seventh supplementary prosecution complaint. He had been issued summons under Section 50 PML Act but did not appear, leading to his arrest. The primary legal issue was whether the arrest complied with Section 19(1) PML Act, which requires the arresting officer to have material in possession, record reasons to believe the person is guilty, and inform the arrestee of the grounds. The Court examined the scope of trial court's power to review the legality of arrest at the remand stage. It held that the trial court is not a mere post office and must scrutinize whether the statutory preconditions for arrest were satisfied. The Court emphasized that the grounds of arrest must be communicated in writing to enable the arrestee to seek bail under Section 45 PML Act, which imposes twin conditions. The Court found that the arrest order did not adequately record the reasons to believe and the grounds were not properly communicated. Consequently, the arrest was held illegal, and the remand order was set aside. The appeal was allowed, and Kejriwal was directed to be released.
Headnote
A) Criminal Law - Prevention of Money Laundering - Arrest under Section 19 PML Act - Validity of Arrest - Trial Court's Power at Remand Stage - The trial court, while ordering remand, has the jurisdiction to examine whether the arrest under Section 19 of the Prevention of Money Laundering Act, 2002, was in compliance with the statutory preconditions, including the existence of 'reason to believe' recorded in writing and communication of grounds of arrest. Failure to comply renders the arrest illegal and the remand order invalid. (Paras 1-10)
B) Constitutional Law - Article 22(1) - Right to be Informed of Grounds of Arrest - Communication of grounds of arrest under Section 19 PML Act must be meaningful and in writing to enable the arrestee to seek bail under Section 45 PML Act. The requirement under Article 22(1) of the Constitution is fundamental and must be strictly adhered to. (Paras 10-11)
C) Criminal Procedure - Remand - Effect of Illegal Arrest - If the arrest is found to be illegal due to non-compliance with Section 19 PML Act, the subsequent remand order is also illegal and the arrestee is entitled to be released. (Paras 7, 11)
Issue of Consideration
Whether the trial court, at the stage of remand, can examine the legality of an arrest made under Section 19 of the Prevention of Money Laundering Act, 2002, and whether the arrest of Arvind Kejriwal was valid.
Final Decision
Appeal allowed. The arrest of Arvind Kejriwal under Section 19 PML Act was held illegal. The remand order dated 01.04.2024 was set aside. Arvind Kejriwal directed to be released.
Law Points
- Section 19 PML Act
- arrest
- reason to believe
- material in possession
- grounds of arrest
- Article 22(1) Constitution
- remand
- legality of arrest
- trial court jurisdiction
Case Details
2024 LawText (SC) (7) 121
CRIMINAL APPEAL NO. 2493 OF 2024
Directorate of Enforcement
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Nature of Litigation
Appeal against judgment of Delhi High Court rejecting writ petition challenging arrest under Section 19 PML Act.
Remedy Sought
Declaration that arrest was illegal and setting aside of remand order.
Filing Reason
Arrest was allegedly in violation of Section 19(1) PML Act as the arresting officer did not have material in possession, did not record reasons to believe, and did not communicate grounds of arrest.
Previous Decisions
Delhi High Court dismissed the writ petition on 09.04.2024.
Issues
Whether the trial court can examine the legality of arrest under Section 19 PML Act at the stage of remand.
Whether the arrest of Arvind Kejriwal was in compliance with Section 19(1) PML Act.
Submissions/Arguments
Appellant: Arrest was illegal as Section 19(1) preconditions were not satisfied; no material in possession, no recorded reasons, grounds not communicated.
Respondent: Arrest was valid; appellant failed to appear despite summons; material existed; reasons recorded; grounds communicated.
Ratio Decidendi
The trial court, at the stage of remand, has the jurisdiction to examine whether the arrest under Section 19 PML Act complies with the statutory preconditions, including the existence of material, recording of reasons to believe, and communication of grounds of arrest. Non-compliance renders the arrest illegal and the remand order invalid.
Judgment Excerpts
This appeal filed by the appellant - Arvind Kejriwal assails the judgment and order dated 09.04.2024 passed by the single Judge of the High Court of Delhi whereby the Criminal Writ Petition filed by Arvind Kejriwal under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, challenging his arrest by the Directorate of Enforcement, vide the arrest order dated 21.03.2024, on the ground of violation of Section 19 of the Prevention of Money Laundering Act, 2002, and the proceedings pursuant thereto including the order of remand dated 22.03.2024 to the custody of DoE passed by the Special Judge, has been rejected.
At the outset, we must clarify that this is not an appeal against refusal or grant of bail. Instead, this appeal impugns the validity of arrest under Section 19 of the PML Act.
A bare reading of the section reflects, that while the legislature has given power to the Director, Deputy Director, Assistant Director, or an authorised officer to arrest a person, it is fenced with preconditions and requirements, which must be satisfied prior to the arrest of a person.
Procedural History
CBI registered FIR on 17.08.2022. DoE recorded ECIR on 22.08.2022. CBI filed chargesheet on 25.11.2022. DoE filed first prosecution complaint on 26.11.2022. Arvind Kejriwal was issued summons under Section 50 PML Act on 30.10.2023 and subsequently eight summons were issued. He was arrested on 21.03.2024. Remand order passed on 22.03.2024. He filed writ petition in Delhi High Court which was dismissed on 09.04.2024. Present appeal filed in Supreme Court.
Acts & Sections
- Prevention of Money Laundering Act, 2002: 19, 45, 50
- Code of Criminal Procedure, 1973: 482
- Indian Penal Code, 1860: 120B, 477A
- Prevention of Corruption Act, 1988: 7
- Constitution of India: 22(1), 226, 227
