Delhi Chief Minister Arvind Kejriwal was arrested by the Enforcement Directorate (ED) on Thursday under the Prevention of Money Laundering Act, 2002, in connection with a money laundering case related to a liquor scam. The ED will seek his custody for interrogation in a special PMLA court today. Kejriwal challenged his arrest in the Supreme Court late on Thursday night, and the top court will hear the case today.
Under the Prevention of Money Laundering Act, 2002, it is very difficult to get bail. This law was enacted in 2002 and implemented on July 1, 2005, with the main objective of preventing money laundering. Amendments made in 2012 brought banks, mutual funds, and insurance companies under its purview.
Challenges of Obtaining Bail Under the Prevention of Money Laundering Act, 2002
Bail under the Prevention of Money Laundering Act, 2002 (PMLA) is not easily available due to its stringent provisions. Enacted in 2002 and implemented in 2005, the PMLA aims to prevent money laundering. Amendments in 2012 expanded its scope to include banks, mutual funds, and insurance companies, making it comprehensive in nature.
Section 45 of the PMLA sets two strict conditions for bail, making it challenging for accused individuals to secure their release. All offenses under the PMLA are cognizable and non-bailable, with no provision for anticipatory bail. This means that those arrested under the PMLA must prove in court that the charges against them are baseless, which can be a difficult task.
For example, two former ministers of the Delhi government, Manish Sisodia and Satyendar Jain, are currently in jail under the PMLA. Another AAP leader, Sanjay Singh, was also arrested under the PMLA and is currently in jail. The stringent conditions for bail under the PMLA have been a subject of debate and scrutiny.
The present government, while amending the PMLA in 2018, added two strict conditions for bail under section 45. These conditions require the court to believe that the accused is not guilty and that there is no apprehension of the accused committing an offense during bail. The Supreme Court upheld ED’s powers and the amendment to the PMLA Act in 2018, stating that money laundering is a heinous crime that affects the nation’s social and economic fabric.
The complexity of obtaining bail under the PMLA, coupled with the burden of proving innocence, makes it a challenging legal process for accused individuals. The stringent conditions for bail under the PMLA reflect the seriousness with which money laundering is viewed and the efforts to curb such activities.
Delhi CM Kejriwal’s Arrest
Kejriwal’s arrest came after the Delhi High Court denied him protection from coercive action by authorities in the case. He had refused to comply with eight summonses issued by the probe agency. The case against Kejriwal stems from the scrapped Delhi excise policy 2021-22, with the ED alleging a conspiracy to give extraordinary profit margins to wholesalers. Kejriwal has claimed that the action against him is part of the BJP’s conspiracy to weaken him ahead of the Lok Sabha elections.
Kejriwal is the fourth prominent Aam Aadmi Party leader to face coercive action by the Enforcement Directorate in the Delhi excise policy case. Manish Sisodia and Sanjay Singh were arrested earlier and are currently in judicial custody, while Satyendar Jain is also in judicial custody in a separate money-laundering case.
