The Supreme Court of India has issued a landmark ruling on the Prevention of Money Laundering Act (PMLA) and Bharatiya Nagarik Suraksha Sanhita (BNSS) compliance. In the case of Kushal Kumar Agarwal v. Directorate of Enforcement, the Court quashed the cognizance order issued on 20th November 2024, as no pre-cognizance hearing was given to the accused, a requirement under the newly enacted Section 223(1) of the BNSS, 2023.
This crucial decision requires the Special Court to provide the accused an opportunity to be heard before taking cognizance of a case, as per Section 44(1)(b) of the PMLA. This is a significant shift from previous practices where such a hearing was not mandatory under the CrPC.
The Court’s ruling leaves open questions regarding the ED’s procedural scope and timing of investigations, which will be addressed in the future. The accused will now appear before the Special Court on 14th July 2025 for a hearing under Section 223(1).
Stay updated with this major legal development and understand its implications on PMLA and BNSS compliance.
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