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Facts:
Delhi Chief Minister Arvind Kejriwal was arrested on 21 March 2024 by the Enforcement Directorate (ED) under Section 19 of the Prevention of Money Laundering Act (PMLA) for alleged corruption and money laundering related to the 2022 Delhi Liquor Policy scam. The ED alleged that the liquor policy was designed to favour leaders of the Aam Aadmi Party (AAP) and certain private entities in the liquor business. Several AAP leaders, including former Deputy Chief Minister Manish Sisodia, were also arrested in connection with this case. Kejriwal challenged the legality of his arrest in the Delhi High Court through a writ petition under Article 226 of the Constitution, which was upheld by the court. He appealed the decision in the Supreme Court, where a Division Bench of Justices Sanjiv Khanna and Dipankar Datta began hearing arguments on 30 April 2024. The Supreme Court granted interim bail to Kejriwal on 12 July 2024, pending the determination of the validity of his arrest by a larger bench. For Kejriwal: Senior Advocate Abhishek Manu Singhvi argued that the ED had insufficient material evidence and relied on coerced statements from unreliable witnesses. He also suggested that the arrest was politically motivated. For ED: The ED argued that the arrest was part of an ongoing investigation and that Section 19 of the PMLA allowed arrests without a prosecution complaint being filed.
Issues:
- Whether the power of judicial review extends to arrests made under Section 19 of the PMLA.
- Whether the ED had sufficient “reasons to believe” that Kejriwal was guilty of the charges.
- Whether the ED considered all relevant material, including evidence that could exonerate Kejriwal, in establishing the grounds for his arrest.
- Whether the “need and necessity” for Kejriwal’s arrest were sufficiently justified and whether these considerations should be part of the arrest conditions under Section 19 of the PMLA.
Decision: The Supreme Court held that judicial review extends to arrests under Section 19 of the PMLA, serving as a safeguard against arbitrary arrests. The court ruled that arrests must be based on valid grounds, and the ED’s reasons to believe Kejriwal was guilty were found sufficient. The court emphasized that the ED must consider all material, including evidence that could exonerate an accused, when making an arrest under Section 19 of the PMLA. The Supreme Court granted interim bail to Kejriwal, noting that the larger bench would need time to settle the issues, including the legality of his arrest. Conditions were imposed on Kejriwal’s interim bail, restricting his official activities and interactions related to the case.
