PMLA Summons After Tarsem Lal: Appearance Before the Special Court Is Not Automatic Custody

Tarsem Lal v. Directorate of Enforcement, 2024 INSC 434, clarified the procedure after the Enforcement Directorate files a prosecution complaint without arresting the accused during investigation. The judgment prevents a court summons from being treated as an automatic command to enter custody and seek bail.

Complaint procedure

A PMLA Special Court takes cognizance of the money-laundering offence on an authorised complaint under Section 44(1)(b). Sections 200 to 205 CrPC applied to such a complaint where the CrPC governed; for proceedings instituted after 1 July 2024, the corresponding BNSS complaint procedure must be examined with the PMLA and its transition provisions.

The Court held that when an accused was not arrested before the complaint, the Special Court should ordinarily issue summons. A person appearing in response to that summons is not in custody merely by appearing. The court may require bonds to secure attendance, but should not insist upon a regular bail application as if the person had been arrested.

When custody may still arise

The ruling does not immunise an accused from lawful arrest. ED may seek custody by applying to the Special Court and establishing grounds. The court must decide such a request judicially. Non-appearance, breach of bonds or other legally relevant conduct may also produce separate consequences.

Exemption from personal appearance

The Court recognised the application of Section 205 CrPC to PMLA complaints because it was not inconsistent with the special statute. The current corresponding provision is Section 228 BNSS. Exemption is discretionary and may be withdrawn when personal attendance is necessary.

Practical effect

The judgment separates three ideas often conflated in practice: summons, custody and bail. A summons secures attendance; it does not retrospectively convert a person whom ED chose not to arrest into an arrested accused.

Sources

Supreme Court of India, Tarsem Lal v. Directorate of Enforcement, 2024 INSC 434: https://api.sci.gov.in/supremecourt/2023/53731/53731_2023_7_1502_53220_Judgement_16-May-2024.pdf

Prevention of Money-Laundering Act, 2002: https://dor.gov.in/prevention-money-laundering

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