Reinforcing the constitutional right to a fair trial, the Supreme Court ruled on Wednesday that individuals accused in money laundering cases are entitled to receive all documents and statements collected by the Enforcement Directorate during the investigation, including those not relied upon in court.
A bench comprising Justices Abhay S. Oka and Ujjal Bhuyan held that once a court takes cognizance of a money laundering case, it becomes mandatory for the trial judge to ensure the accused is provided with a copy of the complaint and the accompanying records.
The bench further directed that not just the documents relied upon by the ED, but even the statements, material evidence, and exhibits not cited in the complaint must be shared with the accused.
Verdict Follows Plea By Sarla Gupta
The decision came in response to a plea by Sarla Gupta, an accused in an ongoing money laundering case. Gupta had moved the apex court challenging a Delhi High Court ruling that had earlier denied her access to the ED’s documents at the pre-trial stage. She argued that such denial hampered her ability to prepare a proper defense.
Court Rejects Limited Disclosure
In a significant departure from the High Court’s stance, the Supreme Court ruled that withholding material from the accused until the trial begins violates the principles of natural justice. The bench noted that transparency in prosecution is critical to ensuring fairness and preventing any prejudice against the accused.
The judges pointed out that the right to a fair trial is not just a procedural requirement but a constitutional guarantee under Article 21. “Once the trial court takes cognizance, it is legally required that the accused be furnished with all relevant material, including what the investigating agency decides not to rely on,” the court observed.
Key Directions
Special courts must direct that the complaint and supporting documents be shared with the accused when cognizance is taken.
The accused should also be given access to all materials collected by the ED during the probe, even if they aren’t being formally used as evidence.
The list of witness statements, exhibits, and objects gathered during the investigation must be provided, regardless of whether the ED intends to rely on them during trial.
Broader Impact On Financial Crime Cases
This landmark ruling is expected to influence the way white-collar crime cases, especially those under the Prevention of Money Laundering Act (PMLA), are handled in the trial courts. Defense lawyers believe the verdict could prevent delays and ensure better parity between the prosecution and defense during the trial.
With this decision, Gupta will now be entitled to receive the full set of documents from the ED, which may potentially alter the trajectory of her defense. Trial courts handling similar cases will also need to revisit their procedures to align with this ruling, which strengthens the rights of the accused during the pre-trial stage.
Read More: Supreme Court, Delhi High Court, States High Court, International
