Why is it in the news?

• The Supreme Court ruled that when an accused person appears before a court in response to a summons, the Enforcement Directorate (ED) must seek permission from the respective court to obtain custody of the accused.

More about the judgement

• The judgment emphasizes the protection of personal liberty, stating that if the accused appears before the special court as summoned, they should not be considered in custody and are not required to apply for bail under the stringent conditions imposed by the anti-money laundering law.
• The ED will need to file a separate application for custody of the accused once they appear in court. The agency must provide specific grounds justifying the need for custodial interrogation.
• However, the special court has the authority to direct the accused to furnish bonds under Section 88 of the Code of Criminal Procedure. It is clarified that accepting a bond under this provision does not grant bail, and the conditions of Section 45 of the Prevention of Money Laundering Act (PMLA) do not apply.
• The judgment is based on an appeal filed by Tarsem Lal against the ED, challenging the denial of anticipatory bail by the Punjab and Haryana High Court.
• The twin conditions for bail under Section 45 of the PMLA impose strict criteria on the accused, including proving their innocence and convincing the judge that they will not commit any offense while on bail. These conditions make it extremely difficult for an accused to obtain bail under the PMLA.
• Additionally, the judgment states that an accused who appears in court as per summons may be exempted from personal appearance in the future. In case of non-appearance after being served a summons, the special court may issue a bailable and subsequently a non-bailable warrant.
• The Supreme Court also clarified that if the ED intends to conduct further investigations related to the same offense, they may arrest a person who is not identified as an accused in the complaint filed under Section 44(1)(b) of the PMLA, provided the requirements of Section 19 (arrest procedures) of the Act are fulfilled.