MUMBAI, March 23 -- Reinforcing limits on the Enforcement Directorate's (ED) power to arrest accused persons after a court takes cognisance, a special Prevention of Money Laundering Act (PMLA) court has granted release on bond to Sumeet P Desai, an accused in the Rs.106-crore Axis Mutual Fund money-laundering case. Additional Sessions Judge RB Rote on Friday allowed Desai's application, noting that he had not been arrested at any stage and had appeared before the court pursuant to summons after the court took cognisance of the prosecution's complaint. Custody cannot be insisted upon where the investigating agency never exercised its power to arrest an accused during investigation, the court held, relying on the Supreme Court's ruling in Tarsem Lal vs Directorate of Enforcement (2024) case. The apex court had held that when an accused appears before a special court in response to summons, the proper course is to secure their presence through bonds rather than custody. Accepting bonds under section 88 of the CrPC (now section 91 of the BNSS) ensures participation in the trial and there is "no reason" to refuse such relief to Desai, the special PMLA court held. The court reiterated the post-cognisance bar articulated in Tarsem Lal: once a Special Court takes cognisance of an offence under section 4 of the PMLA-which prescribes punishment for money laundering under section 3-and is seized of the case, the ED cannot thereafter invoke its arrest power under section 19 of the Act, which otherwise permits authorised officers to arrest a person on "reason to believe" they are guilty of money laundering. The ED opposed the plea, arguing that the accused had participated in laundering the proceeds of crime and his release could lead to absconding or delay in trial. The court, however, held that such concerns could be addressed through conditions rather than custody. The court directed Desai to execute a personal bond of Rs.1 lakh with one or two sureties. Conditions include a bar on tampering with evidence or influencing witnesses, restriction on foreign travel sans permission, attendance on all trial dates, and cooperation with investigators as required....