ED Issues Circular Asking Officers To Ensure Statements Of Individuals Summoned Under PMLA Takes Place During Office Hours

The Directorate of Enforcement (ED) has issued a circular directing its officers to make every effort to record statements of individuals summoned under the Prevention of Money Laundering Act (PMLA) during “earthly hours / office hours” rather than extending such sessions late into the night. 

The circular was issued pursuant to Bombay High Court  order in April disapproving of the practice of recording statements overnight and emphasising the importance of the “right to sleep” of those under investigation. The court had then directed the agency to issue a circular on timings for recording of statements. Special Public Prosecutor Hiten Venegavkar, appearing for the agency, informed the HC on Monday that the circular had been issued.

In the circular, a paragraph titled, “Timing of recording of statement”, reads “The Authorised Officer while fixing the date and time of the compliance of the summons should ensure that the person so summoned is taken up for examination on appointed time and date without keeping him waiting for hours”. 

A bench of Justices Revati Mohite-Dere and Prithviraj Chavan directed the agency to put the circular on their website as well as on social media platform, X, forthwith. 

The relevant paragraph of the circular adds that the authorised officer shall be well prepared with copies of documents to be confronted as well as a questionnaire to examine the person. “Efforts should be made to record statement of person summoned during earthly hours i.e. during office hours rather than stretching it too late at night. In cases of senior citizens, individuals with serious medical condition or individuals who are sick or infirm (subject to verification of medical records or condition), examination of such person should be restricted to earthly hours and it would be appropriate to adjourn the examination to next date or any other mutually agreed date as a matter of practice,” the circular read. 

It added that in cases of money laundering where it is possible for a person to destroy digital evidence or transfer or conceal proceeds of crime within the shortest period of time, the investigating officer should endeavour to conclude the examination of the person summoned ideally on the same day or the following day.

Only in exceptional cases where the authorised officer has credible information that the person summoned may destroy evidence or may abscond or not join the investigation, the statement may be recorded beyond earthly hours, with reasons recorded and approval taken of deputy/joint/additional director, it adds. 

In April, the HC had dismissed a petition by businessman Ram Issrani, 64, who had challenged his "illegal" arrest by the ED in August 2023. However, the bench had criticised the ED for making him wait in the office overnight to record his statement, and noted that such actions by the agency violated Issrani's “right to sleep” under Article 21 of the Constitution. The HC had then directed the ED to issue a circular outlining the time for recording statements when summons under Section 50 of the PMLA is issued.