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LegalFirms.in Judgments · legalfirms.in/judgments/directorate-of-enforcement-vs-subhash-sharma-20250121/ · Printed 07 Nov 2026
Criminal · Reportable judgment

Directorate of Enforcement vs Subhash Sharma

Court
Supreme Court of India
Date
21 January 2025
Case No.
Criminal Appeal No. 310 of 2025
Result
Dismissed
Bench
Abhay S. Oka, Ujjal Bhuyan
Citation
[2025] 1 S.C.R. 1409 : 2025 INSC 141
Acts & Sections
Constitution Prevention of Money Laundering Act, 2002 CrPC
Supreme Court Reports [2025] 1 S.C.R. 1409 : 2025 INSC 141
Issue for consideration
Whether the High Court was justified in holding that the respondent's arrest was illegal and thus, granting him bail for an offence under Prevention of Money Laundering Act, 2002.
Headnote

Bail – Prevention of Money Laundering Act, 2002 – ss.45, 65 – Constitution of India – Art.22(2), 21 – Code of Criminal Procedure, 1973 – s.57 – Arrest vitiated if fundamental rights of the accused u/Arts.21 and 22 were violated – On facts, arrest of the respondent, if was illegal:

Held: Yes – Respondent was not produced before the Magistrate within 24 hours from his arrest – Therefore, the arrest was illegal as a result of the violation of his fundamental rights u/Art.22(2) – Since there was a violation of Art.22(2), even his fundamental right to liberty guaranteed u/Art.21 was violated – Further, the requirement of Art.22(2) has been incorporated in s.57, CrPC – There is no in-consistency between the PMLA and s.57, Cr.P.C – By virtue of s.65 of the PMLA, s.57 of the Cr.P.C applies to the proceedings under the PMLA – Once it is found that the fundamental rights of the accused u/Arts.21 and 22 have been violated while arresting the accused or after the arrest, it is the duty of the Court dealing with the bail application to release the accused on bail as the arrest in such cases is vitiated – It is the duty of every Court to uphold the fundamental rights guaranteed u/Arts.21 and 22 – Therefore, when arrest is illegal or vitiated, bail cannot be denied on the grounds of non-fulfillment of twin tests u/s.45(1)(ii) of PMLA – No error in the impugned order. [Paras 6-9]

Keywords: Articles 22(2), 21 of the Constitution of India · Bail · Illegal arrest · Not produced before the Magistrate within 24 hours · Infringement of fundamental rights under Article 22(2) · Right to liberty · Section 45 of Prevention of Money Laundering Act, 2002 · Section 65 of Prevention of Money Laundering Act, 2002 · Section 57 of Code of Criminal Procedure, 1973 · Twin tests under clause (ii) of sub-section 1 of Section 45 of Prevention of Money Laundering Act, 2002

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Abhay S Oka J. 1. Leave granted. 2. Heard learned counsel appearing for the appellant. 3. The appellant is the Directorate of Enforcement. By the impugned order, the High Court has granted bail to the respondent in connection with an offence punishable under Section 4 of the Prevention of Money Laundering Act, 2002 (for short, ‘the PMLA’). The High Court found that the respondent’s arrest was illegal, and on that ground, he was granted bail. 4. In paragraph 10 of the impugned judgment, the High Court has recorded factual findings which read thus: “From the documents available in
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