Enforcement Directorate and PMLA

An ED case runs on its own law and its own procedure. A summons under Section 50 of the PMLA has to be answered; the statement recorded there can be used later; and bail is subject to the twin conditions of Section 45. Decisions made in the first weeks shape the whole case.

How an ED case moves

1. A scheduled offence is registered, usually by the police or another agency.
2. The ED records an ECIR, its own case record, and issues summons under Section 50.
3. Searches and seizures may follow, and property may be provisionally attached under Section 5 for up to 180 days.
4. The Adjudicating Authority decides whether the attachment is confirmed.
5. Arrest, if made under Section 19, must be on reasons recorded in writing, and the grounds must be given to the person in writing.
6. A prosecution complaint is filed before the Special Court.

What the work covers

• Before the summons date. Advice on the documents asked for, an indexed set, and how statements are recorded.
• Attachment. Replies before the Adjudicating Authority, and appeals to the Appellate Tribunal.
• Arrest and bail. Bail before the Special Court and the High Court, including whether the grounds of arrest were properly given (Pankaj Bansal v. Union of India, 2023).
• The scheduled offence. Work on the underlying police case, because if it ends, the ED case built on it is affected too.

Questions people ask

Is an ECIR the same as an FIR?

No. An ECIR is the ED’s internal record of a case. The Supreme Court held in Vijay Madanlal Choudhary v. Union of India (2022) that it need not be supplied like an FIR, but the grounds of arrest must be given to the arrested person in writing.

Can I take a lawyer inside when I am questioned?

Generally the lawyer does not sit in during questioning, but advice before and after each appearance, and a careful record of what was asked for and given, make a real difference.

Does an ED case need a police case first?

Yes. Money laundering under the PMLA depends on a scheduled offence registered by the police or another agency.