Supreme Court Annual Digest 2023- Prevention of Money Laundering Act (PMLA), 2002

Prevention of Money Laundering Act – Section 3 – Registration of ECIR – Effect of delay – Information about all complaints, the nature of the complaints, and the amount of money allegedly collected towards illegal gratification had all come into the public domain – Once a piece of information relating to the acquisition of a huge amount of illegal gratification in the matter of public employment has come into the public domain, it is the duty of the ED to register an Information Report – Held, registration of ECIR does not amount to fishing expedition – Further held, argument that there is no explanation for the delay in registering the ECIR self-serving – Writ petition challenging ED investigation dismissed. 2023 LiveLaw 440 Prevention of Money Laundering Act ; Sections 3 and 44 – Territorial Jurisdiction of Special PMLA Court – Place of commission of the offence of money-laundering – The involvement of a person in any one or more of certain processes or activities connected with the proceeds of crime, namely, concealment, possession, acquisition, use, projecting as untainted property, or claiming as untainted property, constitutes the offence of money-laundering – All the places where any one or more of these processes or activities take place are the places where the offence of money-laundering has been committed – Triable by the special court constituted for the area in which the offence of money-laundering has been committed – Held, the petition could not be entertained since the issue of territorial jurisdiction could not be decided in a writ petition, especially in the presence of a serious factual dispute about the place or places of commission of the offence – Petition dismissed. 2023 LiveLaw 603 Prevention of Money Laundering Act, 2003 - It is only in the event the person named in the criminal activity relating to a scheduled offence is finally absolved by a Court of competent jurisdiction owing to an order of discharge, acquittal or because of quashing of the criminal case 24 against him/ her, there can be no action for money laundering against such a person or person claiming through him in relation to the property linked to the stated scheduled offence. 2023 LiveLaw 1057 Prevention of Money Laundering Act, 2003 – Sections 3 and 2 – Offence of Money Laundering – Definition of proceeds of crime – In offences of corruption, criminal activity and generation of proceeds of crime go hand-in-hand – Wherever there are allegations of corruption, the acquisition of proceeds of crime itself tantamount to money laundering – Even if an intangible property is derived as a result of criminal activity relating to a scheduled offence, it becomes proceeds of crime under Section 2 – Held, arguments that there are no foundational facts or jurisdictional facts unsustainable and as such, proceedings before Enforcement Directorate not illegal – Writ petition challenging ED investigation dismissed. 2023 LiveLaw 1021 Prevention of Money Laundering Act, 2003; Section 19 – Enforcement Directorate need not give reasons in writing to the accused at the time of arrest.