IBC resolution plan immunity from money-laundering: corporate debtor removed as accused; cases continue against ex-directors, attached assets refunded...
The dominant issue was whether the petitioner's arrest for money-laundering violated the safeguards under Section 19(1)-(2) of the PMLA, including whether "reasons to believe" and the grounds of arrest were illusory and whether arrest could rest on non-cooperation or a predicate-offence investigation. The Court held that arrest under Section 19 is not a tool for investigation; it requires an independent PMLA investigation and recorded written reasons reflecting prima facie satisfaction of guilt, with due consideration of exculpatory material. On the facts, the Court found Section 19 compliance by the arresting officer and declined release on that ground, leaving merits-bail open to be considered independently. - HC
The dominant issue was whether the petitioner's arrest for money-laundering violated the safeguards under Section 19(1)-(2) of the PMLA, including whether "reasons to believe" and the grounds of arrest were illusory and whether arrest could rest on non-cooperation or a predicate-offence investigation. The Court held that arrest under Section 19 is not a tool for investigation; it requires an independent PMLA investigation and recorded written reasons reflecting prima facie satisfaction of guilt, with due consideration of exculpatory material. On the facts, the Court found Section 19 compliance by the arresting officer and declined release on that ground, leaving merits-bail open to be considered independently. - HC
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