Ganesh Prasad Singh Vs Union of India (Patna High Court)
In the case of Ganesh Prasad Singh vs. Union of India, the Patna High Court ruled that the Enforcement Directorate (ED) loses its power to arrest an accused after the Special Court takes cognizance under the Prevention of Money Laundering Act (PMLA). The petitioner, accused in a money laundering case, had cooperated with the ED from 2016 to 2022 without being arrested. However, after the Special Court took cognizance in 2022 based on the ED’s complaint, the petitioner apprehended arrest and sought anticipatory bail. The court relied on the Supreme Court’s decision in Tarsem Lal vs. Directorate of Enforcement, which held that once an ECIR (Enforcement Case Information Report) is filed and an accused is not arrested during the investigation, the ED requires court permission to arrest after cognizance is taken.
The ED was unable to counter this argument, and the Patna HC ruled in favor of the petitioner, stating that since the agency did not arrest the petitioner during the investigation, it cannot exercise arrest powers under Section 19 of PMLA after cognizance is taken. The court directed the trial court to follow the Supreme Court’s precedent, effectively restricting the ED’s power to arrest without judicial authorization post-cognizance. This ruling reinforces procedural safeguards under the PMLA and underscores the importance of judicial oversight in arrests post-investigation.
