The Supreme Court granted anticipatory bail to Odisha Administrative Service (OAS) Officer Bijay Ketan Sahoo. The Directorate of Enforcement (ED) accused him of money laundering in a disproportionate assets case.
A bench comprising Justice Abhay Oka and Justice Augustine George Masih affirmed an earlier order from June 24, 2024, which provided Sahoo with interim protection from arrest. The court’s decision was based on the precedent set in the case of Tarsem Lal v. Directorate of Enforcement. It established that the ED cannot arrest an accused under Section 19 of the Prevention of Money Laundering Act. Once the Special Court has taken cognizance of the complaint.
The court ruled that the decision in Tarsem Lal v. Directorate of Enforcement governs this case, making the interim order dated June 24, 2024, absolute.
Officer Bijay Ketan Sahoo had sought anticipatory bail in the money laundering case, which alleges that he possesses disproportionate assets worth Rs. 5 Crores. The investigation originated from an FIR against Sahoo, his wife Nalini Prusty (a State Financial Official), and several family members for holding assets disproportionate to their known sources of income.
The ED’s investigation under the PMLA led to summons for Sahoo to appear before the Special Court in Bhubaneswar. Authorities allege that Sahoo and his wife acquired multiple properties, including six plots and a three-story building in Bhubaneswar, under a relative’s name despite the relative having no independent income.
The Supreme Court had initially granted Sahoo interim protection following his counsel’s clarification that Sahoo had been cooperating with the investigation for three years without arrest. The anticipatory bail petition was filed only after a summons was issued by the PMLA Court.
What Is The Prevention of Money Laundering Act?
The Prevention of Money Laundering Act (PMLA) combats money laundering in India. It empowers authorities to seize illegal assets, investigate financial crimes, and prosecute offenders. The law ensures strict action against financial fraud.
