Who among the following has the power to arrest a person under Section 19 of the Prevention of Money Laundering Act, 2002?

Correct option is C

The correct answer is (c) The Director, Deputy Director and Assistant Director or any other officer authorised in this behalf by the Central Government.

Explanation

Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, specifies the authorities empowered to arrest an individual suspected of money laundering.

According to Section 19(1), the power to arrest is vested in:

1. The Director
2. The Deputy Director
3. The Assistant Director
4. Any other officer authorized in this behalf by the Central Government by a general or special order.

Mandatory Conditions for Arrest: The law provides stringent safeguards to ensure that this power is not used arbitrarily:

• Material in Possession: The officer must have material or evidence in their possession.
• Reason to Believe: Based on that material, the officer must have a "reason to believe" that the person is guilty of an offence under the Act.
• Recording in Writing: The reason for such belief must be recorded in writing.
• Informing Grounds: The arrested person must be informed of the grounds for such arrest "as soon as may be."

Information Booster:

The Supreme Court has heavily scrutinized Section 19 to balance investigative powers with fundamental rights. In the landmark case of Vijay Madanlal Choudhary v. Union of India (2022), the Court upheld the constitutional validity of Section 19, noting that the power is vested in high-ranking officials and includes internal checks like the recording of reasons.

Key Post-Arrest Procedures:

• Sealed Cover: Immediately after the arrest, the officer must forward a copy of the arrest order and the supporting material to the Adjudicating Authority in a sealed envelope (Section 19(2)).
• 24-Hour Rule: Every person arrested must be produced before a Special Court or Judicial/Metropolitan Magistrate within 24 hours (excluding travel time).