Court Declares Businessman's Arrest Illegal Over Procedural Lapse

A special PMLA court in Mumbai declared the arrest of 70-year-old businessman Purushottam Mandhana illegal after the Enforcement Directorate (ED) failed to provide him a copy of the 'reasons to believe' document. The ED's argument was dismissed, and the court noted that Mandhana's arrest and subsequent remand were unlawful.

A special PMLA court in Mumbai on Thursday ruled that the arrest of 70-year-old businessman Purushottam Mandhana in a money laundering case was 'illegal' due to procedural lapses by the Enforcement Directorate (ED). The court noted that the ED failed to provide Mandhana with the 'reasons to believe' that justified his arrest.

Special judge AC Dagga, who is responsible for cases under the Prevention of Money Laundering Act (PMLA), scrutinized the ED's order and found that although the 'reasons to believe' had been seen by Mandhana, he was never given a copy of the document.

The ED argued that the document had been submitted to the court in a sealed envelope and was not required to be shared with Mandhana. The court, referring to a recent Supreme Court ruling, dismissed the ED's argument, stating that no application was made to decide whether the information should be withheld.

(With inputs from agencies.)