Supreme Court's Landmark Ruling On ED's Powers Post-Cognizance Under PMLA

In a landmark judgment, the Supreme Court of India delivered a significant ruling that clarified the extent of the Directorate of Enforcement's (ED) powers under the Prevention of Money Laundering Act, 2002 (PMLA). A Bench comprising of Justice Abhay S Oka and Justice Ujjal Bhuyan addressed a critical question: Can the ED exercise its powers of arrest after a Special Court under the PMLA has taken cognizance of an alleged offence?

This ruling has far-reaching implications on the scope of the ED's investigative authority, especially in financial crimes where personal liberty and procedural safeguards are of paramount concern.

In overturning the stance of the Punjab & Haryana High Court, the Supreme Court held that once the Special Court, PMLA, has taken cognizance of an offence, the ED loses its independent authority to arrest the accused unless the arrest occurred before the Special Court's cognizance. This decision reinforces the procedural protections available