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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.

Crime

Four convicted in two NDPS cases in Delhi; over 1.4 kg ganja recovered

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New Delhi, Aug 16: Four accused have been convicted in two separate cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act registered at Palam village police station, with Delhi Police highlighting the speedy conclusion of the trials and recovery of more than 1.4 kg of ganja.

According to a press release issued by the South-West District of Delhi Police on Sunday, the four accused were convicted by the court of Saurabh Goyal, JMFC First Class, Dwarka Courts, Delhi.

In FIR No. 130/26 under Section 20 of the NDPS Act, accused Anuj Kumar and Vishal alias Sampi were convicted through an order dated August 10. Police said the conviction was secured within 133 days of the offence and after 45 days of trial.

In the second case, FIR No. 66/26 under Section 20 of the NDPS Act, accused Sanjay Sharma and Rafiq Ahmed were convicted through an order dated August 3. The conviction came within six months of the offence and after 119 days of trial, according to police.

The press release stated that “cases were effectively presented before the Court through the coordinated efforts of the investigating teams and the Prosecution Branch”. It added that Assistant Public Prosecutors Vikas Kharb and Sudhanshu Saini presented the prosecution’s cases, evidence and facts before the court, resulting in the conviction of all four accused.

In the first case, police said Sanjay Sharma was apprehended on February 4, allegedly carrying 442 grams of ganja. Following his disclosure, Rafiq Ahmed was arrested, and another 400 grams of ganja was allegedly recovered from his possession. The chargesheet was filed before the court on April 6 after receipt of a positive Forensic Science Laboratory (FSL) report confirming the nature of the substance.

In the second case, Anuj Kumar was apprehended on March 29 with 545 grams of alleged ganja. Following his disclosure, police arrested Vishal alias Sampi and recovered another 68 grams. The chargesheet was filed on June 26 after the FSL report confirmed the recovered substance.

Deputy Commissioner of Police, South-West District, Amit Goel said the convictions reflected the “sincerity, professionalism, coordinated effort and resolve” of Delhi Police and the Prosecution Branch.

Police said the outcome also highlights the role of scientific investigation and reaffirmed their resolve to curb drug-related offences and ensure speedy justice.

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Shravani Mela Special train coach derails in Jharkhand; no injuries reported

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Ranchi, Aug 16: A major rail accident was narrowly averted in the early hours of Sunday on the Silli-Bokaro railway section in Jharkhand after a coach of the Shravani Mela Special train, travelling towards Madhupur, suddenly derailed, officials said.

A large number of Kanwariyas were travelling on the train when the incident occurred. All passengers aboard the train were reported to be safe, with no casualties reported in the derailment, according to the officials.

The railway officials stated that Train No. 08895, the Madhupur Shravani Mela Special, was proceeding towards Madhupur at around 2:30 a.m. on Sunday when its third coach from the engine suddenly went off the tracks near pole number 354/SA4.

The sudden derailment brought the train to an abrupt halt with a loud noise, briefly triggering panic among the passengers travelling on board.

Soon after receiving information about the incident, railway officials, along with teams of the Railway Protection Force (RPF) and Government Railway Police (GRP), rushed to the spot to assess the situation and begin relief operations.

A technical team was also deployed at the site and immediately started rescue and restoration work. The derailed coach was subsequently brought safely back onto the railway tracks.

However, railway authorities decided not to allow the coach to continue the remaining part of its journey as a precautionary measure.

For safety purposes, the affected coach was stationed at the Muri yard, while the Kanwariyas travelling in it were safely evacuated.

The derailment, however, disrupted rail traffic on the section for some time, leading railway authorities to alter the routes of several trains operating through the affected stretch.

The railway’s technical team simultaneously began repair and restoration work on the damaged portion of the track.

After sustained efforts by railway staff and technical personnel, the repair work on the affected track was completed at approximately 5:15 a.m. on Sunday.

Following the completion of the restoration work, train operations on the Bokaro section resumed, and normal rail movement was gradually restored.

Railway authorities have initiated an investigation into the incident to establish the exact cause of the derailment and determine the circumstances that led to the coach going off the tracks.

Officials are examining the condition of the track and other technical aspects as part of the inquiry.

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Business

CM Patel leaves for US, Canada to attract investment ahead of Vibrant Gujarat 2027

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Ahmedabad, Aug 16: Gujarat Chief Minister Bhupendra Patel departed from Ahmedabad in the early hours of Sunday for a visit to the United States and Canada aimed at attracting global investment and inviting investors and industry leaders to the Vibrant Gujarat Global Summit 2027.

CM Patel is leading a high-level state delegation that will engage with investors, industry associations, emerging technology leaders and members of the Gujarati community during the overseas outreach.

The visit comes ahead of the summit scheduled for January 2027, with the state stepping up international engagement to showcase its industrial and economic opportunities.

The delegation will hold roundtable conferences and one-to-one meetings in Washington DC, New York and San Francisco in the US, followed by engagements in Toronto, Canada.

The meetings are intended to present Gujarat’s development and investment opportunities and extend invitations to participate in the Vibrant Gujarat Global Summit.

Chief Secretary M.K. Das; Additional Chief Secretary of Finance, T. Natarajan; Additional Chief Secretary of Industries and Mines, Mamta Verma; Principal Secretary to the Chief Minister, Sanjeev Kumar; and Additional Principal Secretary to the Chief Minister, Dr Vikrant Pandey; are accompanying CM Patel, along with representatives from the state’s trade and industry sector.

Officials said the delegation would particularly engage with investors and leaders in emerging technology sectors while also reaching out to the Gujarati diaspora.

The overseas meetings form part of Gujarat’s broader preparations for the 2027 summit, with international outreach programmes planned to build participation and investment interest.

The visit also marks the first official trip to the US by a sitting Gujarat Chief Minister since 1995, according to reports.

CM Patel’s tour is scheduled to cover the US and Canada from August 17 to 24.

The Chief Minister’s departure from Ahmedabad Airport was attended by officials including Collector Bhavya Verma, who extended their wishes for the visit.

The Vibrant Gujarat Global Summit, conceived in 2003, has developed into an international platform for business networking, investment and strategic partnerships. The next edition is scheduled for January 2027.

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