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In a judgment reinforcing the rights of the accused in cases under the Prevention of Money Laundering Act (PMLA), the Supreme Court of India on Wednesday ruled that an accused is entitled to receive a list of all documents and material collected by the Enforcement Directorate (ED) during the course of the investigation, even those that are not relied upon by the agency in its complaint.

The apex court observed that denial of such access undermines the fundamental right to a fair trial and could prevent the accused from uncovering potentially exculpatory material that might help in their defense.

Accused Has Right to Know What’s Withheld

A three-judge bench comprising Justices Abhay S. Oka, Ahsanuddin Amanullah, and A.G. Masih overturned a Delhi High Court ruling that had upheld the ED’s decision to share only those documents it chose to rely on in its prosecution complaint.

Justice Oka, delivering the operative part of the verdict, stated: “It is held that a copy of the list of statements, documents, material objects and exhibits that are not relied upon by the investigating officer must also be furnished to the accused.”

The court clarified that while the accused may not receive all non-relied documents at the pre-charge stage, the list of such documents must be provided so the defense may request their production under Section 91 of the Criminal Procedure Code (CrPC). This, the court emphasized, is essential to ensure the defense is not blindsided and has the opportunity to request critical material that may aid their case.

PMLA’s Reverse Burden Demands Greater Transparency

The judgment gains added importance due to the “reverse burden of proof” under Section 24 of PMLA, which shifts the onus onto the accused to prove their innocence. The court recognized the seriousness of this burden and noted that withholding information could effectively render the accused powerless to discharge it.

Referring to Sections 232 and 233 of the CrPC, the bench reiterated that courts must adopt a liberal interpretation when an accused seeks to compel production of documents or witnesses in their defense. The only exception for denial, it stated, would be if the request is evidently intended to cause delay, vexation, or defeat the ends of justice.

“If the special court refuses the prayer made by the accused in terms of Section 233(3) CrPC… the accused will not be in a position to discharge the onerous burden on him under Section 24 of the PMLA,” the bench remarked.

Delhi HC Overruled, Fair Trial Principles Reaffirmed

The Delhi High Court had earlier held that the court cannot compel the prosecution at the pre-charge stage to furnish documents beyond those relied upon in the complaint or already sent to the court. This position, the Supreme Court found, was inconsistent with the broader principles of fair trial and due process under Article 21 of the Constitution.

The ruling sets a critical precedent for ongoing and future money laundering cases, many of which involve high-profile individuals, corporate executives, and political figures. It ensures that accused persons are not forced to defend themselves blindly, while facing the stringent provisions of PMLA, which already restrict bail and shift evidentiary burdens.

Legal experts believe this judgment may prompt a reevaluation of procedural safeguards in PMLA proceedings and strengthen protections against potential misuse of investigative discretion.