The Supreme Court highlighted the contentious issues surrounding Section 19 of PMLA (Prevention of Money Laundering Act).
About Section 19 of PMLA:
- Section 19 authorizes the Enforcement Directorate (ED) to arrest individuals suspected of money laundering.
- Grounds for Arrest: The ED must have ‘reasons to believe,’ based on material evidence, that a person is involved in money laundering.
Arbitrary Use of Power:
- Lack of Transparency: The ‘reasons to believe’ clause is criticized for lacking transparency, which may lead to potential misuse.
- Selective Targeting: There are allegations that the ED might target political opponents selectively under this clause.
Judicial Scrutiny and Safeguards
- Judicial Oversight: Courts have stressed the importance of robust judicial oversight to prevent misuse of the arrest powers granted by Section 19.
- Rights of the Accused: The judiciary must scrutinize the ‘reasons to believe’ to ensure the rights of the accused are not violated.
Burden of Proof and Evidentiary Standards
- Material Evidence: There is a requirement for substantive evidence to support the ‘reasons to believe’.
- Judicial Review: The judiciary plays a critical role in assessing the sufficiency of evidence presented by the ED to prevent arbitrary arrests.
Human Rights Concerns
- Custodial Rights: It is fundamental to safeguard the rights of those in custody, including protection from inhumane treatment and ensuring legal representation.
- Potential for Abuse: The possibility of coercion and custodial torture under the guise of investigation calls for strict regulatory oversight.
Procedural Flaws and Reforms Needed
- There are calls for the ED to maintain exhaustive records justifying arrests, which should be reviewed during bail hearings.
- Proposals exist for amending Section 19 to include clearer guidelines and checks to prevent abuse.
Also know about: ‘Twin Test’ under PMLA and Adjudicating Authority under PMLA
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Frequently Asked Questions (FAQs):
What is Section 19 of the PMLA?
Section 19 of the PMLA allows the Enforcement Directorate (ED) to arrest individuals suspected of engaging in money laundering activities.
What is meant by selective targeting under Section 19?
Selective targeting refers to allegations that the ED may use Section 19 to disproportionately target political opponents or specific individuals.
What are custodial rights under the PMLA?
Custodial rights include protections against inhumane treatment and ensuring access to legal representation for those detained under the PMLA.