SARLA GUPTA v. DIRECTORATE OF ENFORCEMENT
Discusses principles of fair trial, rights of accused, and interpretation of CrPC and PMLA provisions.
Court: Supreme Court of India
Citation: 2025 INSC 645
Decision Date: 07-05-2025
List of Laws
Indian Penal Code, 1860; Prevention of Corruption Act, 1988; The Prevention of Money Laundering Act, 2002 (PMLA); Code of Criminal Procedure, 1973 (Cr.P.C.); Constitution of India, 1949; Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS); Indian Evidence Act, 1872; Prevention of Money Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005
- Indian Penal Code, 1860: The judgment refers to Section 120-B IPC, noting that a First Information Report (FIR) was registered against the appellants for offences punishable under this section. It also mentions Section 420 IPC, stating that the FIR was registered for offences punishable under Section 120-B read with Section 420 of the IPC. Additionally, the judgment notes that a predicate offence was registered under Section 420 of the IPC in Criminal Appeal No. 730 of 2024.
- Prevention of Corruption Act, 1988: The judgment mentions Section 13(1)(d) of the Prevention of Corruption Act, 1988, stating that the FIR was registered against the appellants for offences punishable under Section 120-B read with Section 420 of the IPC and Section 13(1)(d) of this Act.
- The Prevention of Money Laundering Act, 2002 (PMLA): The judgment extensively discusses various sections of the PMLA. It mentions Section 3, stating that the allegation in the complaint is of the commission of the offence under this section, which is punishable under Section 4 of the PMLA. Section 4 is also mentioned in this context, specifying that it provides the punishment for the offence under Section 3. Section 17 is discussed at length, quoting the provision regarding the power of the Director or authorized officers to conduct search and seizure of record or property, including subsections related to freezing property and forwarding reasons to the Adjudicating Authority. Section 18 is also quoted, detailing the power to search persons and seize records or property, including the requirement to forward reasons to the Adjudicating Authority and procedures for searching persons. Section 20 is quoted, dealing with the retention of property seized under Section 17 or 18, including the process for retention and forwarding information to the Adjudicating Authority. Section 21 is quoted, addressing the retention of records seized under Section 17 or 18, and explicitly stating in subsection (2) that "The person, from whom records seized or frozen, shall be entitled to obtain copies of records". Section 43(1) is mentioned, noting the power vested in the Central Government to designate courts of session as Special Courts. Section 44(1)(a) is mentioned, stating that offences under the PMLA are triable by the Special Court. Section 44(1)(b) is discussed extensively, noting that the Special Court is empowered to take cognizance of the offence under Section 3 only upon a complaint, and that the Special Court proceeds with the trial in accordance with the CrPC. It also notes that Section 44(1)(b) obviates the need for committal to the Sessions Court. Section 45(1)(ii) is discussed in relation to bail applications, noting the burden on the accused to show reasonable grounds for believing they are not guilty. Section 46 is mentioned, stating that the provisions of the CrPC apply to proceedings before a Special Court under the PMLA, save as otherwise provided in the PMLA. Section 50 is mentioned, referring to statements under this section produced before the Special Court. Section 65 is discussed, stating that the provisions of the CrPC apply to proceedings under the PMLA insofar as they are not inconsistent with the PMLA. Section 71 is mentioned, noting its provision for the PMLA to have overriding effect notwithstanding anything inconsistent in any other law. Section 2(w) defines 'records', and Section 2(v) defines 'property'.
- Code of Criminal Procedure, 1973 (Cr.P.C.): The judgment extensively discusses various sections of the CrPC. Section 91 is discussed in relation to the power of the court to summon the production of documents, and its applicability at different stages of the proceedings, including during bail applications and defence evidence. Section 173 is mentioned in the context of documents to be supplied to the accused after the filing of a chargesheet. Section 200 is mentioned in relation to statements recorded by the Magistrate in complaint cases. Section 202 is mentioned in relation to statements recorded by the Magistrate in complaint cases. Section 203 is mentioned, stating that if the Special Court is of the view that no prima facie case of an offence under Section 3 PMLA is made out, it must exercise the power under Section 203 CrPC to dismiss the complaint. Section 204 is discussed, stating that it is applicable to a complaint under Section 44(1)(b) of the PMLA, and that the process issued on the complaint must be accompanied by a copy of the complaint. Section 207 is discussed at length, detailing the documents to be supplied to the accused in cases instituted on a police report, including the police report, FIR, confessions, and statements. The judgment notes that Section 207 does not specifically apply to complaints under Section 44(1)(b) of the PMLA, but the principles should be applied. Section 208 is discussed, detailing the documents to be supplied to the accused in cases instituted otherwise than on a police report, and triable by the Court of Session. The judgment notes that Section 208 does not specifically apply to complaints under Section 44(1)(b) of the PMLA, but the principles should be applied. Section 209 is mentioned as throwing light on the interpretation of "the record of the case". Section 227 is discussed in relation to the provision for discharge, and what constitutes 'the record of the case' for the purposes of framing a charge. Section 233 is discussed, detailing the right of the accused to lead evidence and apply for the issue of process for compelling the attendance of any witness or the production of any document or thing. Section 238 is mentioned as reiterating the mandatory requirement of providing the documents referred to in Sections 207 and 208 of the CrPC. Section 243 is discussed, detailing the provision for evidence for the defence in warrant cases. Section 311 is discussed in relation to the power of the court to recall a witness for further cross-examination. Section 482 is mentioned, stating that the Special Court does not have inherent powers at par with the High Court under this section.
- Constitution of India, 1949: Article 14 is mentioned, stating that if the provision is interpreted to mean that the person from whom such deeds or instruments are seized is not entitled to receive even copies of the same, the provision will be rendered arbitrary and violative of Article 14 of the Constitution. Article 21 is discussed extensively, stating that the right to get all the documents collected during the investigation flows from the right to a free and fair trial, which is guaranteed under Article 21 of the Constitution. It also states that a fair trial is a part of the right guaranteed to an accused under Article 21 of the Constitution.
- Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): The judgment mentions that Section 207 of the CrPC has been retained in the BNSS in the form of Section 230. It also mentions that the provisions of Sections 200 to 204 of the CrPC (Sections 223 to 227 of the BNSS) will apply to a complaint under Section 44(1)(b) of the PMLA. Section 204 of the CrPC (Section 227 of the BNSS) is applicable to a complaint under Section 44(1)(b) of the PMLA. Section 233 of the CrPC (Section 256 of BNSS) is discussed in relation to the right of the accused to lead evidence. Section 311 of the CrPC (Section 348 of the BNSS) is mentioned in relation to recalling a prosecution witness.
- Indian Evidence Act, 1872: Section 114 is mentioned, stating that the accused can always invoke the presumption under clause (g) of Section 114 of the Indian Evidence Act, 1872 (clause (g) of Section 119 of the Bharatiya Sakshya Adhiniyam, 2023).
- Prevention of Money Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005: Sub-rule (2) of Rule 4 is mentioned, mandating the authority exercising the power of seizure to prepare a seizure memo. Sub-rule (4) of Rule 4 is mentioned, providing that a copy of the list of seized property prepared shall be delivered to the occupant of the building or place searched.
🔒 For Members Only