Court rules that issuance of warrants violated legal prerequisites as the petitioner was not classified as an accused under Section 73 of CrPC.
In a significant ruling, the Delhi High Court on December 19, 2025, quashed the non-bailable warrants issued against Sachin Dev Duggal, a UK citizen, in connection with the high-profile Videocon money laundering case. The Court found that the issuance of the warrants did not comply with the mandatory prerequisites under Section 73 of the Code of Criminal Procedure (CrPC), 1973.
The Enforcement Directorate (ED) had sought the issuance of non-bailable warrants against Duggal, alleging non-cooperation in the investigation of a money laundering case involving Videocon Industries Ltd. The warrants were initially issued by the Special Court, PMLA, New Delhi, on February 10, 2023. However, the High Court, presided over by Justice Amit Sharma, noted that Duggal was referred to as a 'witness' rather than an 'accused' throughout the investigation, which precluded the issuance of such warrants under Section 73.
Section 73 of CrPC stipulates that a warrant can only be directed against a convict, a proclaimed offender, or a person accused of a non-bailable offense who is evading arrest. Since Duggal was not classified as an accused, the Court held that the issuance of warrants was legally untenable. The judgment emphasized the necessity of adhering to procedural safeguards and the statutory framework governing the issuance of warrants.
The case has drawn attention due to its connection with significant financial transactions and allegations of funds being siphoned off through a complex web of international companies. The Court's decision underscores the importance of legal procedure and the protection of individual rights in the face of investigative proceedings.
The High Court's order also highlighted that any non-compliance with summons issued under Section 50 of the Prevention of Money Laundering Act, 2002 (PMLA) should be addressed under Section 174 of the Indian Penal Code (IPC), which deals with non-attendance in obedience to an order from a public servant.
The ruling marks a critical juncture in the ongoing investigation and may impact how the ED approaches future requests for non-bailable warrants during the investigation phase. The Court's decision is expected to provide clarity on the legal standards for classifying individuals as accused and the conditions under which coercive measures can be employed.
Bottom Line:
Issuance of Non-Bailable Warrants under Section 73 of CrPC - Held, prerequisites of Section 73 are sacrosanct and sine qua non, and warrants cannot be issued without meeting the essential requirements mentioned therein.
Statutory provision(s): Section 73 of CrPC, Section 50 and Section 65 of PMLA, Section 174 of IPC, Section 482 of CrPC
Sachin Dev Duggal v. Directorate Of Enforcement, (Delhi) : Law Finder Doc id # 2825530
