Supreme Court Rules on ED's Arrest Powers in Anti-Money Laundering Cases

The Supreme Court has emphasized that the power to arrest under the anti-money laundering law must not be wielded arbitrarily by the Enforcement Directorate (ED). In a landmark ruling, the court granted interim bail to Delhi Chief Minister Arvind Kejriwal, highlighting the necessity for ED officers to consider both inculpatory and exculpatory evidence before arresting individuals under Section 19(1) of the Prevention of Money Laundering Act.

The Supreme Court stated on Friday that the power to arrest under the anti-money laundering law cannot be exercised arbitrarily by Enforcement Directorate (ED) officers.

In granting interim bail to Delhi Chief Minister Arvind Kejriwal in the money laundering case linked to an alleged excise policy scam, Justices Sanjiv Khanna and Dipankar Datta emphasized that any undue leniency to the ED would undermine constitutional values of rule of law and the liberty of individuals.

The bench argued that officers cannot selectively pick and choose material to justify arrests and must equally consider evidence that may exonerate the accused. The ruling underscores that the ED's decisions must comply with legal standards to avoid judicial errors.

(With inputs from agencies.)