What Section-19 of PMLA Says | Explained

New Delhi: The Supreme Court of India is considering whether to grant interim bail to jailed Delhi Chief Minister Arvind Kejriwal amid the ongoing Lok Sabha elections 2024. The Bench of Justices Sanjiv Khanna and Dipankar Datta are hearing the plea filed by the AAP convenor and national capital's CM. Kejriwal was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 222, (PMLA) Section 19 in the Delhi Excise Policy case.

Securing bail under the Prevention of Money Laundering Act, of 2002, poses several significant challenges due to its strict provisions.

Why is it Difficult to Get Bail in a Money Laundering Case?

As per the provisions of the Money Laundering Act, of 2002, it is difficult to get bail as it aims to prevent money laundering crimes in India. The amendments brought to the law in 2012, brought banks, mutual funds, and insurance companies under its sight.

All offences under the PMLA are cognisable and non-bailable, with no provision for anticipatory bail. This means, that in Kejriwal's case, he will have to prove in court that charges made against him by the ED are baseless, which can be a challenging task for his legal counsel.

What is Section 19 of PMLA?

Section 19 of the Prevention of Money Laundering Act 2002 (PMLA) allows the authorised officials of the Directorate of Enforcement (ED) to arrest a person based on the material in their possession, by providing a reasonable reason to suspect that individual has committed an offence punishable under the law.

The first provision of the PMLA, 2002, read, "If the Director, Deputy Director, Assistant Director, or any other officer authorised in this behalf by the Central Government by general or special order, has on the basis of material in his possession reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest."

Furthermore, the second provision under the PMLA states that a Director, Deputy Director, Assistant Director or any other office should issue material to the courts involving oral communication of arrest grounds, raising concerns about transparency in certain ED arrests.

Meanwhile, the third provision says that every person who is arrested shall be taken to a Special Court or to a Judicial Magistrate or Metropolitan Magistrate within twenty-four hours of the arrest.

Section 45 of PMLA Under Which Sanjay Singh Was Granted Bail

Aam Aadmi Party (AAP) leader Sanjay Singh who was also arrested in the Delhi excise policy case was released under Section 45 of the PMLA Act, 2002.

Section 45 of the Prevention of Money Laundering Act (PMLA) talks about certain conditions under which an individual can be granted bail and states that no accused person shall be granted bail unless "the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail."

According to Section 45 of the PMLA, bail can be granted to an accused in a money laundering case only if these two conditions are fulfilled, that are- there should be prima facie satisfaction that the accused has not committed the offence and that he is not likely to commit any offence while on bail.