Judicial review of PMLA arrests limited to procedural compliance; 'reasons to believe' under s.19 valid on prima facie material like seized assets, statements; no need for naming in predicate FIRs; offence independent of scheduled offence arraignment.

JUDGMENT :

GAUTAM A. ANKHAD, J.

1. By the present petition filed under Articles 226 and 227 of the Constitution of India read with section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the petitioner seeks a declaration that his arrest by the respondent no.1 (“ED”) on 13^th August 2025 is illegal and violates his fundamental rights guaranteed under Articles 14, 19, 21 and 22 of the Constitution of India. The petitioner further prays for quashing and setting aside the orders dated 14^th August 2025, 20^th August 2025 and all other orders passed in Remand Application No.1136 of 2025 by the learned Additional Sessions Judge (PMLA) and for a direction for his release from custody.

2. The petitioner joined the Vasai-Virar City Municipal Corporation (“VVCMC”) as a Deputy Director, Town Planning on 13^th August 2010. Between 2019 and 2023, the following four First Information Reports (“FIR”) were registered at the Tulinj police station and Achole police station:

(i) FIR no.1348 of 2019 dated 26^th November 2019 registered under sections 420, 467 and 471 of the Indian Penal Code, 1860 (“IPC”);

(ii) FIR no.195 of 2022 dated 26^th April 2022 registered under section 420 of IPC;

(iii) FIR no.196 of 2022 dated 27^th April 2022 registered under sections 420, 467 and 471 of IPC;

(iv) FIR no.69 of 2023 dated 2^nd February 2023 registered under section 420 of IPC.

3. The allegations in these FIRs pertain to illegal construction of 41 buildings by developers using upon forged permissions and fabricated documents on lands that were reserved for a sewage treatment plant and dumping ground. By an order dated 8^th July 2024 in Writ Petition No.15853 of 2022, this Court directed demolition of 41 illegal buildings. The demolitions were carried on 20^th February 2025, affecting approximately 2,500 families. On the very next day, i.e., 21^st February 2025, an Enforcement Case Information Report vide ECIR/MBZO-II/10/2025 was registered by the ED on the basis of the FIRs bearing nos.1348/2019, 195/2022 and 69/2023 concerning the illegal constructions and matters connected therewith.

4. From March 2025 onwards, statements of several persons including the petitioner were recorded under section 50 of the Prevention of Money Laundering Act, 2002 (“PMLA”). On 14^th May 2025, 15^th May 2025 and 3^rd June 2025, search and seizure operations were conducted at the petitioner’s residences in Hyderabad and Mumbai. Along with property documents, unaccounted cash of Rs. 8.23 crores and diamond-studded jewellery valued at Rs. 23.28 crores (26,338 grams) were found and seized by the ED. Based on the material so gathered, an information was shared with the State authorities and a First Information Report vide FIR no. 330 of 2025 was registered on 1^st August 2025 under sections 13(1)(b) and 13(2) of the Prevention of Corruption Act, 1988 (“PC Act”) against the petitioner. By way of an Addendum, the aforesaid FIR was made a part of the ECIR on 4^th August 2025. On 13^th August 2025, the petitioner was arrested by the ED and furnished with the written grounds of arrest and the reasons to believe for invoking section 19 of the PMLA. The petitioner is presently in judicial custody pursuant to successive remand orders including orders dated 14^th August 2025, 20^th August 2025, 3^rd September 2025, 8^th September 2025, 17^th September 2025 and 1^st October 2025. It is in this backdrop that the present petition has been filed.

5. Mr