Non-Bailable Warrants Can't Be Issued Against Person Summoned As Witness Or Suspect During ED Probe: Delhi High Court

The Delhi High Court has held that non-bailable warrants (NBWs) can't be issued against a person who has only been summoned as a witness or suspect in a money-laundering investigation, unless such person is shown to be accused of non-bailable offence.

Justice Amit Sharma thus quashed the NBWs issued by the Enforcement Directorate against UK-based businessman Sachin Dev Duggal in connection with money laundering allegations.

ED had sought issuance of NBWs on the ground that Petitioner failed to appear in response to summons issued under Section 50 of the Prevention of Money Laundering Act.

Petitioner on the other hand contended that he was neither an accused nor the summons were never served through the prescribed legal procedure applicable to persons residing abroad.

Agreeing, the High Court observed that the Petitioner was only being summoned for the purpose of inquiry and not as an accused in any scheduled or money-laundering offence. It said,

“It is no doubt true that Non-Bailable Warrants can be issued against the person who is evading investigation and who may not be formally arrayed as accused in the prosecution complaint, however, such persons must be projected as a person accused of committing non-bailable offence and evading arrest for the purpose of Section 73 of the CrPC. In the peculiar facts of the present case, the respondent, as noted hereinbefore, has shown the petitioner as a 'witness'.”

As such, it cancelled the NBWs issued against the Petitioner and clarified that the ED would be at liberty to proceed afresh in accordance with law.

Before parting, the Court remarked, “Power to issue non-bailable warrants in aid of investigation is not in dispute. However, the clear pre-requisites of issuance of non-bailable warrants as per Section 73 of the CrPC is sacrosanct and sine qua non which cannot be given a go by.”

Appearance: Mr. Mohit Mathur, Senior Advocate with Mr. Arshdeep Singh Khurana, Ms. Sulakshan S. Vedartham, Ms. Khushboo Jain, Mr. Chetan Nagpal Advocates for Petitioner; Mr. Zoheb Hossain, Special Counsel with Mr. Vivek Gurnani, Panel Counsel, Mr. Kartik Sabharwal, Mr. Pranjal Tripathi and Mr. Daanish Abbasi, Mr. Mahesh Gupta, Mr. Navin Kumar and Mr. Ashish Kapoor, Advocates for Respondent

Case title: Sachin Dev Duggal v. Directorate Of Enforcement

Case no.: CRL.M.C. 4362/2023

Click here to read order