Refusal of Enforcement Directorate (ED) Summons: 5 Jan, 2023

ED Summons:

• The ED issued summons under the Prevention of Money Laundering Act (PMLA), which does not require specifying if the person summoned is an accused or a witness.

Legal Provisions for ED Summons:

• Summons are issued under Section 50 of the PMLA, granting the ED powers similar to a civil court for investigation purposes.
• Non-compliance with ED summons can lead to penalties and potential action under Section 174 of the Indian Penal Code, which includes a jail term and/or fine.

Implications of Non-Appearance:

• Arresting someone for non-compliance with ED summons is complex and unprecedented.
• The ED can seek non-bailable warrants, but this requires convincing the court of deliberate non-cooperation and involvement in the offense.
• Courts have ruled that ED’s power to issue summons does not include the power to arrest.

ED’s Power to Arrest:

• The PMLA does not allow arrest for non-cooperation alone.
• Arrests under the PMLA (Section 19) require the officer to have material possession indicating the person’s guilt in money laundering.
• The Delhi High Court clarified that the power to arrest under Section 19 is distinct from the power to issue summons under Section 50.

Court Interpretations:

• The Delhi High Court stated that ED cannot arrest based on whims and must have substantial reasons.
• It also noted that anticipatory bail can be sought by individuals apprehending arrest by the ED, even if not named as accused in the agency’s reports.

Why in News:

• Delhi Chief Minister Arvind Kejriwal refused to appear before the Enforcement Directorate (ED) for questioning, citing various reasons.