2026 Supreme(Online)(Tel) 16238
P. Sam Koshy, Narsing Rao Nandikonda, JJ
Pachipala Namratha – Appellant
Versus
Union of India – Respondent
WRIT PETITION No.6550 of 2026
Important Points
Subject
Criminal Law - Economic Offences
Act Referred
Prevention of Money Laundering Act, 2002: S.19, S.50, S.3, S.4, S.2(1)(u), S.66(2), S.45, S.17, S.23, S.24
Bharatiya Nyaya Sanhita, 2023: S.61(2), S.316, S.318, S.335, S.336, S.340
Surrogacy (Regulation) Act, 2021
Juvenile Justice (Care and Protection of Children) Act, 2015
Code of Criminal Procedure, 1973: S.65, S.167
Bharatiya Nagarik Suraksha Sanhita, 2023: S.187
Customs Act, 1962
Headnote
(B) Prevention of Money Laundering Act, 2002 - Section 19 - “Reasons to believe” vs. “Grounds of arrest” - Similarity between these two documents does not per se indicate non-application of mind - If the officer has recorded material facts in both documents and the conclusions are germane to the facts, no exception can be taken - The law does not mandate that these documents must be distinguishable in form or content. (Paras 23-24, 33)
(C) Arrest/Remand - Judicial Scrutiny of Remand - A remand order is not rendered illegal merely due to brevity - The court's duty at the remand stage is limited to ensuring compliance with statutory mandates like Section 19 of the Act - It is not required to conduct a mini-trial or arrive at a detailed judgment. (Paras 37-38)
Facts of the case:
Petitioner challenged the arrest made under Section 19 of the Prevention of Money Laundering Act, 2002, contending that the arrest was arbitrary, illegal, and in violation of constitutional safeguards. The petitioner alleged that the “reasons to believe” and “grounds of arrest” were identical, constituting a mechanical exercise of power. The petitioner further argued that the remand order passed by the Magistrate was mechanical and lacked independent judicial application of mind.
Findings of Court:
The Court held that the writ petition was not the appropriate forum to examine the correctness or sufficiency of the investigative material. It found that the statutory requirements under Section 19 of the Act were satisfied on the face of the records provided by the authorities. The Court observed that the procedural safeguards had been adhered to, and that issues regarding the merits of the case and the validity of the evidence are to be raised in appropriate proceedings, such as a bail application, before the Special Court.
Issues: The main issues were the validity of an arrest challenged under Article 226 when an alternative remedy under special law exists, whether the similarity between the 'reasons to believe' and 'grounds of arrest' vitiates the arrest, and the scope of judicial review in examining remand orders.
Ratio Decidendi: The power of judicial review in cases of arrest under special anti-money laundering legislation is restricted to ensuring compliance with statutory and constitutional mandates. Provided that the authorized officer has recorded reasons in writing and the arrestee has been informed of the grounds, the Court will not substitute its own view on the merits of the material or the necessity of the arrest during an ongoing investigation.
Result: Writ petition dismissed.
For the Appellants/Petitioners: Naga Muthu, Y. Soma Srinath Reddy
For the Respondents: Dominic Fernandes
| Table of Content |
|---|
| 1. factual background and procedural history of the petitioner's arrest under pmla. (Para 1 , 1 , 2 , 3 , 4 , 5) |
| 2. arguments concerning non-compliance with section 19 pmla safeguards and the distinction between reasons for arrest and grounds of arrest. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13) |
| 3. arguments regarding the necessity of a predicate offence and the illegality of remand without application of judicial mind. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20) |
| 4. respondents' contention that the investigation was legally compliant and judicial review in writ jurisdiction is limited. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27) |
| 5. court's analysis on the maintainability of writ petitions and the scope of judicial review under pmla. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38) |
| 6. social impact of alleged crimes and final dismissal of the writ petition. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45) |
1. Whether Reporters of Local newspapers
may be allowed to see the Judgments? : Yes
2. Whether the copies of judgment may be
marked to Law Reporters/Journals? : Yes
3. Whether His Lordship wishes to
see the fair copy of the Judgment? : Yes
________________
P.SAM KOSHY, J
ORDER: (per the Hon’ble Sri Justice P.Sam Koshy)
Heard Mr. Naga Muthu, learned Senior Counsel appearing on behalf of Mr. Y.Soma Srinath Reddy, learned counsel for the petitioner; and Mr. Dominic Fernandes, learned Senior Standing Counsel for ED appearing on behalf of the respondents.
2. The instant writ petition under Article 226 of the Constitution of India has been filed by the petitioner seeking the following relief/s, viz.,
“………to issue a writ, order or direction, more particularly
1. The writ of certiorari, to call for records and set aside the arrest of the petitioner dated 12th February, 2026 at the hands of the respondent No.2 by declaring the arrest of the petitioner to be arbitrary and wholly non-est, illegal, unconstitutional, more particularly in violation of Section 19 of the Prevention of Money Laundering Act, 2002, and in violation of Articles 14, 21 and 22 of the Constitution of India, and thereby quash the entire proceedings relating thereto including the arrest order dated 12th February, 2026 passed by respondent No.2 and all subsequent against the petitioner herein.
2. Further, quash and set aside the orders dated 12th February, 2026 and all further orders of remand, passed by the Special Sessions Judge for Prevention of Money Laundering Act, Nampally, Hyderabad.
3. Direct forthwith release of the petitioner from custody as her further incarceration would be anathema to law and gravely detrimental to the cause of justice;
4. Issue this any other writ(s) order(s), or direction(s), that the Hon'ble Court may deem fit and proper in the circumstances of the case in the interest of petitioner.”
3. The facts of the case are that the petitioner is a medical practitioner (fertility specialist) presently lodged at Chanchalguda Central Jail. The matter is stated to have originated from a complaint lodged by one Sonia at Gopalapuram Police Station on 25.07.2025, leading to registration of FIR No.147 of 2025 under Section 61(2), 316, 318, 335, 336 and 340 of the Bharatiya Nyaya Sanhita, 2023 (for short ‘BNS’) and the petitioner was arrested by the police personnel on 27.07.2025 with remand to judicial custody. Thereafter, the said Police Station is stated to have registered multiple FIRs on similar cause of action namely FIR Nos.150 to 157 of 2025, and all such FIRs were later transferred to CCS Police Station and renumbered as FIR Nos.94 to 102 of 2025 with additional invoked provisions including the provisions of the Surrogacy (Regulation) Act, 2021 (for short the ‘Act of 2021’) and the Juvenile Justice (Care and Protection of Children) Act, 2015 (for short the ‘JJ Act’).
4. Based on the aforesaid predicate FIRs, respondent No.2 is stated to have recorded an ECIR bearing No.ECIR/HYZO/46/2025, dated 08.09.2025, on certain scheduled offences. Pursuant th