This week in Indian law: The Supreme Court delivered the landmark Pankaj Bansal judgment mandating that the ED must furnish written grounds of arrest under PMLA Section 19. The RBI MPC held the repo rate at 6.50% for the fourth consecutive meeting. The legal community awaited the Constitution Bench verdict on same-sex marriage. 6 significant legal developments this week across criminal law, regulatory updates, and constitutional rights.
Top story
SC: ED Must Furnish Written Grounds of Arrest Under PMLA Section 19
Category: criminal-law | Date: 3 October 2023 | Source: Supreme Court of India
The Supreme Court in Pankaj Bansal v. Union of India delivered a landmark judgment establishing that the Enforcement Directorate must furnish written grounds of arrest to every person arrested under Section 19 of the Prevention of Money Laundering Act 2002. The bench held that mere verbal communication of arrest grounds does not satisfy the constitutional requirement under Article 22(1), which mandates that an arrested person be informed of the grounds of arrest. Non-compliance with the requirement to provide written grounds renders the arrest itself illegal and constitutes a ground for immediate release.
Why it matters: This judgment transforms PMLA arrest practice. The ED's previous practice of providing only verbal reasons for arrest is now unconstitutional. Defence counsel in all PMLA cases should immediately challenge any arrest where written grounds were not provided at the time of arrest. The judgment crystallises months of evolving judicial scrutiny of ED arrest procedures that began in July 2023. Prosecution teams must ensure strict compliance to avoid having arrests set aside.
Read more: Veritect analysis
Regulatory updates
RBI MPC Holds Repo Rate at 6.5% for Fourth Consecutive Review
Regulator: RBI | Date: 6 October 2023 | Source: RBI
The Reserve Bank of India's Monetary Policy Committee held the repo rate at 6.50% for the fourth consecutive meeting, maintaining the "withdrawal of accommodation" stance. The MPC noted that economic growth remained resilient while inflation required continued vigilance, particularly with food price pressures. GDP growth projection was maintained at 6.5% for FY2024.
Key point: The extended pause signals that the rate hike cycle is effectively over, but the RBI is maintaining hawkish messaging to anchor inflation expectations. Borrowers and lenders should plan for rates remaining at current levels through at least early 2024.
Also this week
- Same-sex marriage verdict imminent — The Constitution Bench verdict in Supriyo v. Union of India on the legal recognition of same-sex marriage was expected any day, following the conclusion of hearing before the five-judge bench led by CJI Chandrachud.
- SC IBC matters listed — Several significant Insolvency and Bankruptcy Code matters were listed for hearing, including the doctrine of election issue and homebuyer financial creditor status.
- Adani-Hindenburg hearing scheduled — The Supreme Court's final hearing in the Adani-Hindenburg matter was scheduled for later in October, with SEBI expected to present its completed investigation findings.
By the numbers
- 6.50% — Repo rate held unchanged for the fourth consecutive MPC meeting
- 6.5% — GDP growth projection for FY2024 maintained by RBI
- 4 — Consecutive MPC meetings with repo rate on hold since the last 25bps hike in February 2023
Looking ahead
- October 10: SC to hear IBC doctrine of election matter
- October 16: SC judgment on senior advocate designation (Mathews Nedumpara)
- October 17: SC Constitution Bench verdict on same-sex marriage (Supriyo v. UoI)
- October 25: Adani-Hindenburg matter listed in Supreme Court
This is the Veritect Weekly Legal Roundup for Week 40 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.