Supreme Court directs the ED to furnish a copy of written grounds of arrest to the accused at the time of arrest

While hearing the Pankaj Bansal vs. Union of India & Ors. case on October 03, 2023, the Supreme Court stated that the ED (Directorate of Enforcement) should furnish a copy of written grounds of arrest to the accused at the time of arrest. The same was directed while setting aside the arrest of and granting bail to the real estate group M3M’s directors Pankaj Bansal and Basant Bansal in the money laundering case filed against them by the ED. A two-judge bench was hearing the matter including Justice AS Bopanna and Justice Sanjay Kumar. The order reads, “We hold that it would be necessary, henceforth, that a copy of written grounds of arrest is furnished to the arrested person as a matter of course and without exception.”

While directing the immediate release of Pankaj Bansal and Basant Bansal, the SC said that the ED’s conduct ‘reeks of arbitrariness’. The judgment reads, “Being a premier investigating agency charged with the onerous responsibility of curbing debilitating economic offence of money laundering in our count every action of the ED in the course of such exercise is expected to be transparent, above board and conforming to the pristine standards of fair play in action. The ED mantled with far-reaching powers under the stringent Act of 2002, is not expected to be vindictive in its conduct and must be seen to be acting with utmost probity and with the highest degree of dispassion and fairness.” 

During the court proceedings, Senior Advocate (SA) Abhishek Manu Singhvi, SA Mukul Rohatgi, SA Vikram Chaudhary, SA Randeep Rai, Advocates Neeha Nagpal, Rajat Joneja, and Malak Manish Bhatt appeared for the Bansals whereas Additional Solicitor General SV Raju appeared for the ED. While delivering the judgment, the bench referred to the Prevention of Money Laundering Act and judgments related to money laundering and pointed out that a mere order of remand is not enough to validate the grounds of arrest.

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