By Team Neeraj Associates, Lucknow · Last reviewed: November 2026 · 10 min read
हिंदी में पढ़ें: ED का समन, छापा या गिरफ़्तारी — हिंदी गाइड
Quick answer: The Enforcement Directorate (ED) investigates money laundering under the Prevention of Money Laundering Act, 2002 (PMLA). A PMLA case needs an underlying "scheduled offence", such as cheating, corruption or a narcotics offence. The ED records its case in an ECIR, can summon any person to give a statement and documents (Section 50), search premises (Section 17), arrest a person only on recorded reasons to believe that he is guilty, with the grounds of arrest given in writing (Section 19), and provisionally attach property for up to 180 days (Section 5). Bail is harder than in ordinary cases because of the twin conditions in Section 45, but courts grant bail where those conditions are met, where custody is long and the trial is delayed, or where the person falls in a protected category.
How a PMLA case starts
- Scheduled offence first. Money laundering means dealing with the "proceeds of crime" (Section 3). There must be a scheduled offence, usually registered by the police, CBI or another agency, from which those proceeds came. If the scheduled offence is quashed, or the accused is discharged or acquitted in it, the PMLA case built on it generally cannot continue.
- ECIR. The ED records an Enforcement Case Information Report. It is an internal document, not an FIR, and the ED is not bound to give a copy at the start. The person must, however, be told the grounds if arrested.
- Scale in 2025–26. The ED says it carried out about 2,892 searches, filed 812 prosecution complaints and provisionally attached assets worth about ₹81,422 crore in FY 2025–26, while arrests fell to 156. The focus has shifted from arrests to tracing and attaching assets.
If you receive an ED summons (Section 50)
A summons can be issued to an accused, a witness, or anyone who may have relevant documents. It often does not say which you are.
- Do not ignore it. A person summoned is bound to attend and to state the truth. Non-appearance without reason can be penalised and can be held against you when arrest or bail is considered.
- Read what is asked. Note the date, time, office and the documents required. If the date clashes or more time is needed to collect documents, ask for a new date in writing before the due date.
- Prepare documents in order. Carry copies, keep a list of what you hand over, and ask for an acknowledgement.
- Your statement matters. Statements recorded under Section 50 can be used as evidence. Answer carefully and accurately; do not guess figures. Read the statement before signing, and note any correction on it.
- Get advice before you go. An advocate can assess your exposure, prepare you for the questions and, where there is a real risk of arrest, consider the remedies available before the date.
Search and seizure (Sections 17 and 18)
- A search needs written authorisation from a senior ED officer, based on recorded reasons to believe.
- Two independent witnesses should be present, and a panchnama and a list of seized items are prepared. Ask for a copy of the list and check it before signing.
- Seized property or records can be retained only as the Act allows, and the retention must be confirmed by the Adjudicating Authority.
- Stay calm and cooperative. Note the names and designations of the officers, and inform family members and your advocate.
Arrest under Section 19
- The arresting officer must have material in possession and reasons to believe, recorded in writing, that the person is guilty of money laundering. Suspicion or non-cooperation alone is not enough; refusing to admit guilt is not "non-cooperation".
- The grounds of arrest must be given to the arrested person in writing, as soon as possible. Courts have treated a failure to do so as making the arrest illegal.
- The person must be produced before the Special Court (or the nearest Magistrate) within 24 hours.
- The ED's custody is limited by court order; after that the person goes to judicial custody.
Bail under PMLA (Section 45)
The twin conditions. Before granting bail, the court must give the Public Prosecutor a chance to oppose it. Where it is opposed, the court must be satisfied that:
- there are reasonable grounds to believe the accused is not guilty of the offence, and
- he is not likely to commit any offence while on bail.
Who is exempt from the twin conditions: a person under 16, a woman, a person who is sick or infirm, and a person accused of laundering less than ₹1 crore, if the court so directs.
Other routes to bail:
- Long custody and slow trial. Courts have repeatedly held that personal liberty under Article 21 prevails when an accused has spent a long time in custody and the trial is not likely to end soon. Section 479 of the BNSS (earlier Section 436A CrPC) also allows release after half the maximum sentence is served as an undertrial, and after one-third for a first-time offender.
- Investigation complete. Continued detention is harder to justify once the investigation against the applicant is over.
- Appearing on summons after cognizance. Where the ED does not arrest during investigation and the Special Court takes cognizance and issues summons, an accused who appears on the summons is not to be treated as in custody, and the twin conditions do not apply in the same way. Any ED request for custody then needs the court's permission.
- Anticipatory bail. It is available in principle, but the twin conditions apply to it too, so it is granted with care.
PMLA offences are punishable with 3 to 7 years' rigorous imprisonment (up to 10 years where the scheduled offence is under the NDPS Act), and a fine.
Attachment of property
- Provisional attachment (Section 5): the ED can attach property believed to be proceeds of crime for up to 180 days.
- Adjudicating Authority (Section 8): within that time the ED must file a complaint; the Authority hears the person and confirms or releases the attachment.
- Appeal (Section 26): to the Appellate Tribunal within 45 days of the order.
- High Court (Section 42): a further appeal on a question of law within 60 days.
A person whose property is attached but who is not an accused, such as a bona fide buyer or a lender, can also object before the Adjudicating Authority. Keep purchase deeds, bank records and tax returns ready to show the source of funds.
Practical checklist
- Keep records of income, investments and property purchases, and the source of funds for each.
- Keep a copy of every document you give to the ED, and of every notice and order you receive.
- Do not move, sell or hide assets after a summons or search; it can be treated as an attempt to defeat the proceedings.
- Keep track of the scheduled offence case as well. Its outcome directly affects the PMLA case.
- Note every deadline: summons dates, 180 days for attachment, 45 days for appeal.
Frequently asked questions
Is an ECIR the same as an FIR?
No. An ECIR is the ED's internal record of the case. It is not registered under the BNSS, and the ED does not have to give a copy at the start, though the grounds must be given if a person is arrested.
Can the ED arrest me just because I was summoned?
No. A summons alone does not mean arrest. Arrest needs recorded reasons to believe that the person is guilty, based on material in the ED's possession, and the grounds must be given in writing.
Can my statement to the ED be used against me?
Yes. Statements recorded under Section 50 are treated as evidence in PMLA proceedings, so answer accurately and read your statement before signing.
Is bail impossible in PMLA cases?
No. The twin conditions make bail harder, but courts grant it where the conditions are met, where custody is long and the trial delayed, where the investigation is complete, or where the accused falls in a protected category.
What if the original case against me is closed?
If the scheduled offence is quashed, or you are discharged or acquitted in it, the money laundering case based on it generally cannot continue.
How long can my property stay attached?
A provisional attachment lasts up to 180 days unless the Adjudicating Authority confirms it. A confirmed attachment can be challenged before the Appellate Tribunal within 45 days.
Official sources
- Prevention of Money Laundering Act, 2002 (Sections 2, 3, 4, 5, 8, 17, 18, 19, 26, 42, 44, 45, 50).
- Bharatiya Nagarik Suraksha Sanhita, 2023 (Section 479).
- Enforcement Directorate figures for FY 2025–26 as reported in May 2026.
About the authors
Team Neeraj Associates, Lucknow Email: rishi.saxena@neerajassociates-legal.com · Phone: +91 8960006363
Questions on this guide? If you have a question about the law discussed here, write to rishi.saxena@neerajassociates-legal.com. Selected questions will be answered in future updates of this guide. We do not advise on individual matters through this website.
Disclaimer: This article is general information as of November 2026, not legal advice. PMLA law is shaped by court decisions that continue to develop. If anything here differs from the Act or a binding decision, the law prevails. Please consult an advocate about your situation.
Disclaimer: This article is general information about Indian law and is not legal advice. Laws, rules and court rulings change, and your situation may differ. Please consult an advocate before acting.