While granting bail to an accused in a money laundering case related to the alleged Chhattisgarh liquor scam, the Supreme Court on Wednesday remarked that the concept of Prevention of Money Laundering Act (PMLA), 2002 cannot be to ensure that a person remains in jail.
A bench led by Justice Abhay Oka called out the Enforcement Directorate (ED) for keeping the accused in custody despite the order taking cognisance of its prosecution complaint having been quashed due to lack of sanction.
The Supreme Court in its November 2024 ruling held that prior government sanction to prosecute public servants as required under Section 197(1) of CrPC will be applicable to a complaint under PMLA as well.
The ruling requires probe agency ED to also seek sanction before cognisance of its prosecution complaint is taken.
In the present case, almost a year after ED filed chargesheet against the accused, an Indian Telecommunications Service Officer and lower court took cognisance of the same, the Delhi High Court recently, on February 7, quashed the same since no sanction was taken by the agency relying on the Supreme Court’s November 2024 order.
The court also found it shocking that the probe agency did not inform the court about the cognisance order being quashed and only informed court later during the hearing after it’s questions.
ASV SV Raju appearing for ED argued that the cognisance order was quashed due to lack of sanction and not because no offence was made out against the accused. He added that the agency has received the sanction as needed to prosecute and has applied to court for taking fresh cognisance of the complaint. He also argued that just because the cognisance order was set aside it would not make the arrest of the accused illegal.
The court, however, noted that as of Wednesday, there’s no complaint since the order taking cognizance is not in existence. It added that ED has made an application before the Special Court requesting it to take cognisance and the said court will have to examine the case considering ED’s stand that there is a sanction.