Till Conviction Rate In PMLA Cases Improves, People Will Remain Sceptical About ED Arrests: Justice Ujjal Bhuyan

Even though the Prevention of Money Laundering Act (PMLA) is an important weapon to combat money laundering, its abysmally low conviction rates are one of the major reasons for the Supreme Court to grant bail in cases arising from the said act, Justice Ujjal Bhuyan said on Sunday.

The judge pointed out that from 2014 to 2024, while the Enforcement Directorate (ED) has lodged over 5.3 thousand cases, but the agency has managed to secure convictions only in 40 such cases. 

"The PMLA is a weapon to combat money laundering... So why are we speaking so much about bail? Data submitted by the Union government reveals a sharp rise in PMLA cases being filed... By 2024, ED lodged more than 5k cases while only 40 convictions which is abysmally low...Also consider the fact that the maximum punishment under PMLA is 7 years... There's a considerable delay in commencing trial... Large number of witnesses and exhibits are also a contributing factor for delayed conclusion of trial," Justice Bhuyan pointed out. 

When such low is the conviction rate, would it be correct to make an individual languish in prison for longer periods, without trial, the judge questioned. 

"When the conviction rate is low a person cannot be kept in jail forever or for too long... Thus the Supreme Court has nowadays has reinforced that 'Bail is the Rule and Jail is the Exception' even in PMLA cases," Justice Bhuyan said. 

The judge further pointed out that with courts granting bail in PMLA cases, there is a growing misconception in the public at large 'equating bail to acquittal'

"We (as judges) don't act with a sense of vengeance but we act with proportionality... We exercise our jurisdiction in a measured way. Therefore, the focus should be on proper investigation and till the conviction rate improves, people will remain sceptical about arrests, registration of ECIR under PMLA," the judge underscored.  

The judge was speaking at the launch of the book - 'Treatise on PMLA, Law & Practice' authored by advocate Akhilesh Dubey, at an event held at Mumbai's Cuffe Parade area. 

Also present for the event were Chief Justice Alok Aradhe of the Bombay High Court, Justice Revati Mohite-Dere and Justice Mahesh Sonak along with Advocate General Dr Birendra Saraf. 

Addressing the gathering , Justice Mohite-Dere too referred to various landmark rulings of the Supreme Court in which bail have been granted to accused in PMLA cases. The judge also highlighted in her speech, how while dealing with a similar case, she leading a division bench, deprecated the conduct of the ED sleuths interrogating persons even in the night hours and subsequently arresting them.

"The case before us was an individual accused in a PMLA case, he was called to ED office at 10:30 in the morning but was interrogated only in the night and it went on till 3:30 am and he was shown to be arrested at 5:30 am. We dismissed the petition against arrest but deprecated this conduct of the ED officials. The central agency has now issued guidelines mandating officers to interrogate persons only during office hours," the judge said.