PMLA arrest power requires fresh, objective material; stale or recycled suspicion cannot justify arrest under Section 19.

Arrest under Section 19 of the Prevention of Money Laundering Act is valid only where the authorised officer has current, objective material in hand, records written reasons to believe, communicates the grounds of arrest, and follows the statutory forwarding and remand safeguards. The power is not a routine investigative tool and cannot rest on conjecture, recycled suspicion, or mere non-cooperation. Stale material from earlier proceedings, without fresh incriminating material emerging from the later search, does not meet the statutory threshold. On the stated facts, the arrest was held contrary to law and release forthwith was directed.

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Issues: Whether the petitioners' arrest under Section 19 of the Prevention of Money Laundering Act, 2002 was illegal for want of fresh tangible material and for reliance on stale material from earlier proceedings.

Analysis: The statutory scheme of the Prevention of Money Laundering Act, 2002 requires the authorised officer to possess material in hand, form a reason to believe on that material, record the reasons in writing, communicate the grounds of arrest, and comply with the forwarding and remand safeguards. The power of arrest is not a routine investigative measure and cannot be exercised on conjecture, recycled suspicion, or mere non-cooperation. The material relied on for arrest must be current, objective, and capable of supporting the statutory satisfaction that the person is guilty of money-laundering. Arrest cannot be sustained by using the same foundation that had earlier not resulted in arrest, especially when no summons were issued and no fresh incriminating material emerged from the subsequent search.

Conclusion: The arrest was held contrary to law because the statutory threshold under Section 19 was not met on the basis of fresh and tangible material; the petitioners were entitled to be released forthwith.

Ratio Decidendi: Arrest under Section 19 of the Prevention of Money Laundering Act, 2002 is valid only when, on the material then in possession, the authorised officer records written reasons to believe supported by objective and current material, and the power cannot be used on stale or recycled material merely to continue or intensify investigation.

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