India, 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 front-running 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 Cour...