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        Money Laundering

        2024 (5) TMI 1104 - SC - Money Laundering

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        Written grounds of arrest must be furnished at the earliest; SC extends Pankaj Bansal to UAPA arrests and invalidates remand. Article 22(1) requires that an arrested person be informed of the grounds of arrest in a meaningful manner, which includes furnishing the written grounds ...
                    Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                        Written grounds of arrest must be furnished at the earliest; SC extends Pankaj Bansal to UAPA arrests and invalidates remand.

                        Article 22(1) requires that an arrested person be informed of the grounds of arrest in a meaningful manner, which includes furnishing the written grounds at the earliest. The SC held that there is no material distinction between Section 19(1) of the Prevention of Money Laundering Act and Section 43B(1) of the Unlawful Activities (Prevention) Act, because both rest on the same constitutional safeguard, and the rule in Pankaj Bansal applies pari passu to UAPA arrests. On the facts, the arrest memo did not contain the personal grounds of arrest and the remand order was passed before effective communication to counsel, so the arrest and police custody remand were illegal and vitiated; later transmission of the remand application and filing of the charge sheet did not cure the defect.




                        Issues: Whether the arrest and police custody remand were vitiated because the grounds of arrest were not furnished in writing at the time of arrest and before the remand order, and whether the rule in Pankaj Bansal applied to arrests under the Unlawful Activities (Prevention) Act, 1967.

                        Analysis: The right under Article 22(1) of the Constitution of India requires that the arrested person be informed of the grounds of arrest in a meaningful manner, and the Court held that this necessarily means furnishing the written grounds of arrest at the earliest. The Court found no material distinction between Section 19(1) of the Prevention of Money Laundering Act, 2002 and Section 43B(1) of the Unlawful Activities (Prevention) Act, 1967, both resting on the same constitutional safeguard. It held that the interpretation in Pankaj Bansal applied pari passu to arrests under the Unlawful Activities (Prevention) Act, 1967. On the facts, the arrest memo did not contain the personal grounds of arrest, the remand order was passed before the accused's counsel was effectively informed, and the later transmission of the remand application could not cure the defect. The filing of the charge sheet did not validate the initial illegality.

                        Conclusion: The arrest and police custody remand were held to be illegal and vitiated for non-supply of written grounds of arrest, and the challenge succeeded in favour of the appellant.

                        Ratio Decidendi: The grounds of arrest must be furnished in writing to the arrested person at the earliest as a constitutional requirement, and failure to do so vitiates the arrest and any consequential remand; this rule applies equally to arrests under the Unlawful Activities (Prevention) Act, 1967 where the statutory language is pari materia with the comparable provision considered earlier.


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