2024 (5) TMI 675 - SC - Money Laundering

Seeking grant of Interim bail - challenge to arrest of Arvind Kejriwal by the Directorate of Enforcement - scope and violation of Section 19 of the Prevention of Money Laundering Act, 2002 - HELD THAT - Power to grant interim bail is commonly exercised in a number of cases. Interim bail is granted in the facts of each case. This case is not an exception. The prosecution has rightly pointed out that the appellant Arvind Kejriwal had failed to appear in spite of nine (9) notices/summons, first of which was issued in October 2023. This is a negative factor, but there are several other facets which we are required to take into consideration. The appellant Arvind Kejriwal is the Chief Minister of Delhi and a leader of one of the national parties. No doubt, serious accusations have been made, but he has not been convicted. He does not have any criminal antecedents. He is not a threat to the society. The investigation in the present case has remained pending since August 2022. Arvind Kejriwal was arrested, as noted above, on 21.03.2024. More importantly, legality and validity of the arrest itself is under challenge before this Court and we are yet to finally pronounce on the same. The fact situation cannot be compared with harvesting of crops or plea to look after business affairs. Once the matter is subjudice and the questions relating to legality of arrest are under consideration, a more holistic and libertarian view is justified, in the background that the 18th Lok Sabha General Elections are being held. A coordinate Bench of this Court in THE STATE OF ANDHRA PRADESH VERSUS NARA CHANDRA BABU NAIDU 2024 (5) TMI 611 - SC ORDER , in an appeal filed by the State, by an interim order has deleted the condition restraining the respondent therein from organising or participating in public rallies and meetings, thereby permitting him to participate in the political process. This petition seeking special leave to appeal is still pending. The appellant Arvind Kejriwal will be released on interim bail till 1st of June 2024, that is, he will surrender on 2nd of June 2024 on fulfilment of conditions imposed - bail application allowed.

Summary

Issues involved: Challenge to order upholding arrest by Directorate of Enforcement, scope and violation of Section 19 of Prevention of Money Laundering Act, 2002, consideration of grant of interim bail/release, legality and validity of arrest, impact of ongoing General Elections.

Judgment Summary:

Challenge to Arrest Order: Arvind Kejriwal challenged the order upholding his arrest by the Directorate of Enforcement (DoE) on 21.03.2024 by the trial court and High Court of Delhi.

Scope of Section 19 Violation: Legal pleas raised include the scope and violation of Section 19 of the Prevention of Money Laundering Act, 2002. The court heard arguments from both sides, with the hearing ongoing.

Consideration of Interim Bail/Release: Due to the prolonged proceedings, the court considered the question of granting interim bail/release in a hearing on 03.05.2024. Various legal issues and contentions are under examination before the court.

Legality of Arrest: DoE registered ECIR No. HIU-II/14/2022 on 22.08.2022 based on predicate offenses by CBI. Investigation led to multiple prosecution complaints and chargesheets, but charges were not framed. The legality and validity of the arrest were challenged before the court.

Impact of General Elections: The ongoing 18th Lok Sabha General Elections were a significant factor prompting the court to consider and pass an order. The court refrained from directing Kejriwal to seek interim bail/release due to the legal issues being examined and the election context.

Grant of Interim Bail: Considering various factors, including Kejriwal's position as Chief Minister of Delhi and leader of a national party, lack of criminal antecedents, and pending investigation since 2022, the court granted interim bail till 1st June 2024 with specific terms and conditions.

Precedents and Legal Principles: The court referred to various case laws on the power to grant interim bail/release, emphasizing the importance of individual circumstances and the need for a holistic view in such decisions.

Final Note: The grant of interim bail was not indicative of the case's merits, and the court set specific terms and conditions for Kejriwal's release until 1st June 2024, after which he was to surrender.