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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.

National News

Maharashtra: Major scam in twin tunnel and elevated road projects, allege Shiv Sena-UBT and Congress

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Mumbai, May 31: The opposition Shiv Sena-UBT and Congress in Maharashtra have claimed that there is a major scam in the Thane-Godbunder-Bhayander twin tunnel and elevated road projects estimated together at Rs 14,000 crore.

“Will Deputy Chief Minister Eknath Shinde be removed from the government and an investigation conducted into this scam?” SS-UBT leader Aaditya Thackeray said at a press conference while criticising the state government after the Mumbai Metropolitan Region Development Authority (MMRDA) told the Supreme Court during a hearing on a petition filed by the infrastructure major L&T that both the tenders would be scrapped, and a fresh tender process would be initiated only to safeguard larger public interest.

“I congratulate the court… I also congratulate the contractor L&T. No political interference is needed. I had brought this news to the fore last year also,” Aaditya Thackeray said on Saturday.

“The cost of the twin projects was expected to be Rs 14,000 crore and, on the other hand, the contract process was to be completed in 20 days. There is a short tender notice for landslides, broken walls. But how can there be a short notice for this big project? When they (L&T) went to court, MMRDA said that they are giving a contract period of 60 days instead of 20 days,” he claimed.

“It all started for a favourite contractor. At that time, I didn’t think it would be such a big scam. There was a settlement against the government for a contract. But today’s (court) case has given me confidence that ‘Satyamev Jayate’ will prevail. It was clear that this was a scam. Just because the contract was canceled later on the orders of the court doesn’t mean it wasn’t a scam.

“The ED and IT-D are being pushed aside. I ask the Chief Minister – are you going to investigate the ‘corrupt Nath’ Shinde? He must have taken bribes, given threats. Fadnavis says we need clean governance. Shinde holds the urban development department… he gives orders to commit scams. Will you investigate him? Are you going to expel him?” Aaditya Thackeray questioned.

He claimed that Fadnavis does not need Shinde as Ajit Pawar is with him. “So will the probe be conducted by keeping aside Shinde?” he wondered.

On the other hand, Maharashtra Pradesh Congress Committee president Harshwardhan Sapkal claimed that there was corruption of Rs 3,000 crore in the Thane-Godbunder-Bhayander twin tunnel and elevated road projects. He also accused CM Devendra Fadnavis and his deputy Eknath Shinde of taking bribes in these projects.

“The matter does not end with the cancellation of the tender by MMRDA as the issue is about corruption. Devendra Fadnavis and Eknath Shinde have created a corridor of corruption in the state and there is a circle of state undertakings including MMRDA, MHADA (Maharashtra Housing and Area Development Authority), CIDCO (City and Industrial Development Corporation) and SRA (Slum Rehabilitation Authority) for this purpose. This circle of corruption has been quite active since Eknath Shinde became the Chief Minister. For this, favourite officers are appointed and through this, the favourite contractor scheme is implemented,” alleged Sapkal.

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National News

Re-tendering of Ghodbunder-Bhayandar projects: Voluntary move despite legal clearance, says MMRDA

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Mumbai, May 31: The Mumbai Metropolitan Region Development Authority (MMRDA) on Saturday strongly defended its decision to scrap tenders for the Thane-Ghodbunder-Bhayandar twin tunnel and elevated road projects, valued at around Rs 14,000 crore.

The authority emphasized that the move was voluntary and aimed at upholding transparency, despite having received legal vindication from the courts.

In a submission before the Supreme Court on Friday, MMRDA said that it would scrap both tenders and initiate a fresh bidding process in alignment with its institutional commitment to transparency and to safeguard the larger public interest.

“The decision to re-tender the Ghodbunder-Bhayandar infrastructure projects underscores MMRDA’s commitment to public value, ethical governance, and transparency,” the authority said in a statement.

“This voluntary step comes despite the Supreme Court declining to interfere with the Bombay High Court’s rulings, which had upheld the legality and procedural soundness of the tender process for the Gaimukh-Bhayandar project,” it added.

MMRDA also said it was actively considering a downward revision of the project’s base cost by around Rs 3,000 crore, based on price quotations revealed during court proceedings, to ensure optimal utilization of public funds.

Infrastructure major Larsen & Toubro (L&T) had twice challenged the tendering process in the Bombay High Court, which on both occasions upheld MMRDA’s procedures, affirming that all rules, technical criteria, and eligibility norms had been followed.

In its Special Leave Petition (SLP) before the Supreme Court, L&T had sought both interim and final reliefs, including a stay on the High Court’s order, a freeze on the opening of financial bids, a bar on disclosure of submitted bids, and a halt on issuing any Letter of Award.

However, the apex court declined to grant any of these interim requests.

“The Court did not stay the High Court’s order, nor did it restrain MMRDA from opening financial bids, disclosing them, or issuing Letters of Award,” the MMRDA statement said.

“During final hearings, Chief Justice B.R. Gavai expressly refused to interfere with the Bombay High Court’s rulings, thus reinforcing the legality of MMRDA’s tendering process.”

According to MMRDA, L&T was disqualified for failing to meet a key eligibility condition that required bidders to declare that no bridge or barrage constructed by them had collapsed within two years of completion.

Based on L&T’s own disclosure, the company was rendered ineligible, and its financial bid was never opened.

“MMRDA’s approach in this matter goes beyond a legal win. It reflects leadership — where legal compliance is a baseline, and ethical decision-making in public interest is the standard,” the statement said.

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Crime

Delhi Police bust interstate auto theft syndicate, recover eight high end cars

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New Delhi, May 30: The Delhi Police Crime Branch has busted an interstate syndicate involved in the theft and resale of high-end vehicles, a statement said on Friday.

The gang used a sophisticated modus operandi to sell stolen cars through online platforms by forging documents, opening bank accounts with fake identities, and tampering with engine and chassis numbers.

In a series of coordinated operations, the police arrested a key member of the gang and recovered eight luxury vehicles.

According to Delhi Police, the breakthrough came with the arrest of Rakesh Patel alias Pappu (38), a core operative of the syndicate, near Sahibabad Railway Station in Ghaziabad on April 21, 2025.

Acting on a tip-off, police apprehended him while he was attempting to sell a stolen Maruti Wagon-R via an online platform.

Patel, a resident of Sahibabad, Ghaziabad (UP), and originally from Mohiuddin Nagar, Samastipur (Bihar), played a central role in managing theft operations and delivering stolen vehicles across states.

His associates arranged vehicles, counterfeit documents, and fake number plates.

The gang’s method was notably elaborate. After stealing a car, they searched online car-selling portals for vehicles of the same make, model, and colour.

Using open-source information, they identified details of genuine owners and forged documents in the owner’s name — featuring the photograph of one of the accused. They also opened bank accounts using these fake identities.

To avoid detection, the syndicate would tamper with the stolen car’s engine and chassis numbers to match those of the legitimate vehicle. Fake Registration Certificates (RCs) were then prepared, making the stolen car appear genuine. Once the vehicle was thus ‘cloned,’ it was listed for sale on online platforms.

The syndicate targeted high-demand vehicles, often choosing cars parked in low-surveillance or roadside areas. The police noted the gang’s use of advanced technological tools to support their operations.

A team led by Inspector Arun Sindhu of the Crime Branch spearheaded the investigation, which led to the arrest and recovery of the stolen vehicles.

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