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‘Stringent, higher standard’: SC upholds validity of PMLA provision on arrest

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The Supreme Court on Wednesday upheld the validity of Section 19 of the Prevention of Money Laundering Act (PMLA), which postulates the manner of arrest of a person involved in money laundering, saying that safeguards are provided in the Act and the preconditions to be fulfilled by the authorised officer before effecting arrest, are equally stringent and of higher standard.

A bench, headed by Justice A.M. Khanwilkar and comprising Justices Dinesh Maheshwari and C.T. Ravikumar said: “We have no hesitation in upholding the validity of Section 19 of the 2002 Act. We reject the grounds pressed into service to declare Section 19 of the 2002 Act as unconstitutional.”

The bench added that such a provision has reasonable nexus with the purposes and objects sought to be achieved by the Act of prevention of money laundering and confiscation of proceeds of crime involved in money laundering, including to prosecute persons involved in the process or activity connected with the proceeds of crime.

The PMLA is a comprehensive legislation, not limited to provide for prosecution of persons involved in the offence of money laundering, but mainly intended to prevent money laundering activity and confiscate the proceeds of crime involved in money laundering, it said.

The bench added that this legislation is an amalgam of different facets including setting up of agencies and mechanisms for coordinating measures for combating money laundering.

“It is not as if after every inquiry, prosecution is launched against all persons found to be involved in the commission of offence of money laundering. It is also not unusual to provide for the arrest of a person during such inquiry before filing of a complaint for indulging in alleged criminal activity,” it noted.

The top court said it is, thus, obliging the person to be obedient to law. “The safeguards provided in the 2002 Act and the preconditions to be fulfilled by the authorised officer before effecting arrest, as contained in Section 19 of the 2002 Act, are equally stringent and of higher standard,” added the bench, in its 545-page judgment.

The top court said safeguards ensure that the authorised officers do not act arbitrarily, but make them accountable for their judgment about the necessity to arrest any person as being involved in the commission of offence of money laundering even before filing of the complaint before the special court under Section 44(1)(b) of the 2002 Act.

“Suffice it to observe that this power has been given to the high-ranking officials with further conditions to ensure that there is objectivity and their own accountability in resorting to arrest of a person even before a formal complaint is filed under Section 44(1)(b) of the 2002 Act.

“Investing of power in the high-ranking officials in this regard has stood the test of reasonableness.”

The top court clarified that the authorities under the 2002 Act are not police officers.

“Ex-consequenti, the statements recorded by authorities under the 2002 Act, of persons involved in the commission of the offence of money laundering or the witnesses for the purposes of inquiry/investigation, cannot be hit by the vice of Article 20(3) of the Constitution or for that matter, Article 21 being procedure established by law,” it added.

The bench noted that in a given case, whether the protection given to the accused who is being prosecuted for the offence of money laundering, of Section 25 of the Evidence Act is available or not, may have to be considered on a case-to-case basis being the rule of evidence.

The petitioners had argued that the procedure being followed under the PMLA is draconian as it violates the basic tenets of the criminal justice system and the rights enshrined in Part III of the Constitution, in particular Articles 14, 20 and 21.

Entertainment

‘Yeh Kaisa Insaan Hai’: Telangana CM Revanth Reddy Slams ‘Pushpa 2’ Star Allu Arjun For Stampede During Screening 

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Hyderabad: Despite police permission being denied, top Telugu actor Allu Arjun attended the theatre where ‘Pushpa-2’ was screened on December 4, Telangana Chief Minister A Revanth Reddy charged on Saturday.

Even after the death of a woman in a stampede, the actor did not leave the cinema hall, prompting the police to force him out, CM alleged.

Responding to the issue after AIMIM MLA Akbaruddin Owaisi raised it in the Assembly, Reddy, referring to videos in circulation, found fault with Allu Arjun for holding a roadshow and waving to the crowds in spite of the heavy crowd.

Reddy further said the theatre management gave a letter to the police on December 2 seeking security for the visit of top actors and others on December 4. However, the police rejected the application, citing difficulties in crowd management.

Before entering the theatre and exiting, the actor stood through the sunroof of his car and waved to the crowds leading to thousands of fans jostling to get a glimpse of him, he said.

He slammed film personalities for making a beeline for Allu Arjun’s residence to meet him after his arrest but not showing empathy to visit the boy who is undergoing treatment in hospital after suffering injuries in the incident.

“I appeal to the top film personalities that they should not be inhuman,” he said.

He also said there won’t be any special privileges when untoward incidents like death in a stampede happen and said the government would not spare those who troubled common people.

A 35-year-old woman died and her eight-year-old son was hospitalised on December 4 during a stampede-like situation at the Sandhya Theatre in Hyderabad when thousands of fans jostled to have a glimpse of the actor at the premiere of the blockbuster ‘Pushpa 2,’.

Following the incident, the city police registered a case against Allu Arjun, his security team, and the theatre management under different sections of Bharatiya Nyaya Sanhita (BNS) at the Chikkadpally police station based on the complaint lodged by the deceased woman’s family.

Allu Arjun was arrested by the city police in connection with the death of the woman on December 13. The Telangana High Court granted him a four-week interim bail on the same day and he was released from the prison here on December 14 morning.

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Conscience itself will deliver justice: Shivakumar on obscene remark row

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Bengaluru, Dec 21: Karnataka Deputy Chief Minister D. K. Shivakumar said on Saturday that conscience itself will deliver justice in the derogatory remark case against BJP MLC C. T. Ravi.

The Deputy Chief Minister’s remark came close on the heels of the release of Ravi, who was arrested over alleged derogatory remark against Minister Laxmi Hebbalkar.

On Ravi’s allegations that police harassed him throughout the night, Shivakumar told reporters: “In this matter, you and the police are involved. Whether it’s at his house or his party, I am the cause of everything.”

“Let the BJP accept that disrespecting women and using abusive language is their culture. We will not object,” said Shivakumar.

“C.T. Ravi has not only spoken disrespectfully about Minister Lakshmi Hebbalkar but also about CM Siddaramaiah. In the Assembly, he used the term ‘Nitya Sumangali’ (a Kannada term used to demean a woman). BJP leaders must introspect whether Ravi’s remark was right or wrong,” he claimed.

“Chikkamagaluru (native place of Ravi) is known for its cultured people. Unfortunately, someone like him hails from there,” he added.

“If any leader from our party had spoken like this, I would have condemned it. However, BJP leaders are standing in defence of their leader,” he claimed.

State Home Minister G. Parameshwara said, “The matter is before the court. I won’t issue any statements as the matter is sub-judice. It is not appropriate to discuss the issue.”

“The police claim that they have initiated steps lawfully. The matter is before the court and they will decide what is right and what is wrong. I have been told that while obtaining information on various circumstances, the judgment has come without asking the version of police. Now, we can’t comment or criticise the decision,” Parameshwara stated.

When asked about the Legislative Council Chairperson Basavaraj Horatti stating that there are no records of Ravi making derogatory remark, Minister Parameshwara said that he does not know anything.

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BRS MLAs will resign if Congress proves 24-hour power claim: KTR

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Hyderabad, Dec 21: Bharat Rashtra Samithi (BRS) Working President K. T. Rama Rao on Saturday told the Telangana State Assembly that all BRS MLAs will resign if the Congress government proves that it is supplying 24-hour electricity to farmers or that it has waived loans of all farmers.

He alleged that the Congress government is making false claims that it is giving round-the-clock uninterrupted power.

Throwing the challenge during the debate on Rythu Bharosa, the BRS leader told Minister for Roads and Buildings Komatireddy Venkat Reddy that he was ready to come with him to Nalgonda district. “If you can show us even in one log book that 24-hour power is being supplied, all we MLAs will resign,” he said.

Similarly, KTR, as Rama Rao is popularly called, also offered to accompany the minister to any village in Kodangal or Sircilla constituency to check on farm loan waivers. “If you can show that loans of 100 per cent farmers were waived even one village, I will resign as MLA and take retirement from politics,” he said.

The BRS leader slammed the Congress government for not properly implementing the Rythu Bandhu scheme launched by the previous BRS government.

KTR said Congress promised enhanced investment support to farmers under Rythu Bharosa but failed to provide the assistance even under the existing scheme.

He claimed that the BRS started Rythu Bandhu to increase the area under cultivation. Citing the statement made by the government, he said the area under cultivation in the state increased from 1.41 crore acres in 2019-20 to 2.04 crore acres in 2020-21.

KTR mentioned that when the BRS came to power in 2014, Telangana had the second-highest number of farmer suicides in the country. He claimed that due to the measures taken by the BRS during the last 10 years, the farmer suicides came down from 11.1 per cent to 1.5 per cent.

The BRS leader alleged that the government was planning to impose cuts under the Rythu Bharosa scheme.

He demanded that the Assembly session be extended by 10 days for a comprehensive debate on electricity, irrigation, and Mission Bhagiratha.

The debate saw a sharp exchange of words and challenges and counter-challenges between BRS and Congress MLAs.

Minister Venkat Reddy threw a challenge at the BRS, saying if it could prove that every household was supplied drinking water under Mission Bhagiratha during its rule, he would not seek votes in the next elections.

He alleged that there was Rs 50,000 crore corruption under Mission Bhagiratha. To this, BRS MLA and former minister Harish Rao mentioned that the total cost of the scheme was only Rs 28,000 crore.

Earlier, Minister for Agriculture Tummala Nageswara Rao said the government has not yet formulated the guidelines. He said the guidelines will be framed after taking suggestions from the legislators.

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