Authorities who misconstrue authority
1 year, 8 months ago

Authorities who misconstrue authority

The Hindu  

The Prevention of Money Laundering Act, 2002 vested a cadre of officers under the Directorate of Enforcement with powers to prevent money laundering, attach proceeds of crime, and confiscate assets. Section 50 of the PMLA provides powers of a civil court to the ED authorities for summoning persons suspected of money laundering and recording statements. It observed in Vijay Madanlal Choudhary v. Union of India that “the process envisaged by Section 50 of the PMLA is in the nature of an inquiry against the proceeds of crime and is not ‘investigation’ in strict sense of the term for initiating prosecution.” There are other dissimilarities between ED authorities and the police. the intention of the Government to have a piece of legislation which can be used as a. disguise for political vendetta or political revenge-taking.” These words were likely in reference to the powers of arrest under Section 19 of the PMLA, which permits superior ED authorities to arrest any person whom they have “reason to believe” is guilty of money laundering based on the material in their possession. Over the last year or so, the ED has arrested Ministers of the Delhi government, Satyender Jain and Manish Sisodia; former Minister from the Shiv Sena, Nawab Malik; former Principal Secretary to Kerala Chief Minister Pinarayi Vijayan, M. Sivasankar; Deputy Secretary to Chhattisgarh Chief Minister Bhupesh Baghel, Saumya Chaurasia; YSRCP MP Srinivasulu Reddy’s son, Magunta Raghava Reddy; and Tamil Nadu Minister, V. Senthil Balaji.

Crime Investigation Money Laundering Money Fir Authorities Proceeds Laundering Pmla Offence Ed Authorities  powers  money  crime  offence  ed  proceeds  misconstrue  authorities  laundering  pmla  authority  investigation

History of this topic

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court
1 week, 4 days ago

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court

Live Law  

Observing that the offence of money laundering is a continuing offence and not a one-time occurrence, the Supreme Court today refused to discharge Pradeep Sharma, a former Gujarat IAS officer in a case under the Prevention of Money Laundering Act. The argument that no offence of money laundering could be made out because the alleged predicate offence occurred before the …

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam
2 months, 2 weeks ago

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam

Live Law  

Underscoring the necessity of the existence of "proceeds of crime" for constituting an offence under the Prevention of Money-Laundering Act, 2002 the Jammu and Kashmir and Ladakh High Court has reiterated that in the absence of such proceeds, no money-laundering offence could arise. The petitioners, who served as Chairman and Secretary, respectively, of the River Jehlum Co-operative House Building Society …

Reining in Excess: Punjab & Haryana High Court's Judgments Curtailing ED's Arbitrary Powers
3 months, 2 weeks ago

Reining in Excess: Punjab & Haryana High Court's Judgments Curtailing ED's Arbitrary Powers

Live Law  

The arrest and detention under the Prevention of Money Laundering Act often turn out to be a punishment due to the wide powers given to the Enforcement Directorate and its stringent bail provisions. Judges Of PMLA Courts Not Supposed To Act Like "Extended Arm Of ED" The High Court pointed out the practice of passing custodial interrogation orders in a …

ED cannot make arrests under PMLA on a whim, says SC
8 months, 2 weeks ago

ED cannot make arrests under PMLA on a whim, says SC

The Hindu  

The Supreme Court on July 12 held that the power to arrest under the Prevention of Money Laundering Act cannot be exercised on the “whims and fancies” of Directorate of Enforcement officers. Highlighting that PMLA allowed arrests on the subjective opinion of ED officers, the court said an officer’s “reasons to believe” that a person was guilty and deserved arrest …

National Herald case: PMLA body upholds attachment of ₹751 cr
11 months, 2 weeks ago

National Herald case: PMLA body upholds attachment of ₹751 cr

Hindustan Times  

An adjudicating authority under the Prevention of Money Laundering Act on Wednesday upheld the attachment of assets worth around ₹752 crore of Congress-run National Herald newspaper and associated firms by the Enforcement Directorate, terming it as “proceeds of crime” involved in money laundering. Under PMLA, an adjudicating authority determines within 180 days whether the properties attached by ED are involved …

PMLA case: ED must tell accused grounds of arrest, reaffirms top court
1 year ago

PMLA case: ED must tell accused grounds of arrest, reaffirms top court

Hindustan Times  

The Supreme Court has dismissed the Union government’s plea to reconsider its judgment that made it mandatory for the Enforcement Directorate to provide a copy of the grounds of arrest to accused in money laundering cases while adding that a mere verbal information would be construed as a breach of constitutional right of arrested persons. The Centre filed the review …

Vulnerable to criticism: On the ED and a possible violation of federal principles
1 year ago

Vulnerable to criticism: On the ED and a possible violation of federal principles

The Hindu  

The structure of the law against money laundering is bound to throw up perplexing questions about the possible violation of federal principles. One such question has arisen in Tamil Nadu, where the Enforcement Directorate is trying to find out whether illegal sand mining in the State is due to corruption and if the “proceeds” are being laundered. In ruling that …

PMLA Does Not Postulate Separate ‘Reason To Believe’ For Each Property Attached Provisionally Under Section 5: Delhi High Court
1 year, 6 months ago

PMLA Does Not Postulate Separate ‘Reason To Believe’ For Each Property Attached Provisionally Under Section 5: Delhi High Court

Live Law  

The Delhi High Court has observed that the Prevention of Money Laundering Act, 2002, does not postulate a separate “reason to believe” for each property which stands attached under the provisional attachment order passed under Section 5 of the enactment. A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad made the observation while dismissing an appeal …

PMLA | 'Reason To Believe' Can't Be Mere Suspicion, Require Sufficient Evidence: Telangana High Court
1 year, 7 months ago

PMLA | 'Reason To Believe' Can't Be Mere Suspicion, Require Sufficient Evidence: Telangana High Court

Live Law  

The Telangana High Court has held that to constitute the offence of money laundering, the Enforcement Directorate must prove a reasonable basis to believe that the offence has been committed and generation of direct or indirect crime proceeds as a result of criminal activity which can be related to the offence. “However, the fact remains that accused Nos.1 to 3 …

PMLA case: SC seeks ED's reply on TN minister Senthil Balaji's plea against HC order
1 year, 8 months ago

PMLA case: SC seeks ED's reply on TN minister Senthil Balaji's plea against HC order

Deccan Chronicle  

New Delhi: The Supreme Court on Friday sought response from the Enforcement Directorate on the pleas of Tamil Nadu Minister V Senthil Balaji and his wife Megala challenging the July 14 order of the Madras High Court upholding his arrest by the probe agency in a money laundering case. Besides upholding the arrest of the minister, the high court had …

PMLA in Consonance with Global Standards Set by Financial Action Task Force: Solicitor-General Tells Supreme Court
1 year, 11 months ago

PMLA in Consonance with Global Standards Set by Financial Action Task Force: Solicitor-General Tells Supreme Court

Live Law  

Provisions of the Prevention of Money Laundering Act, 2002 are in compliance with the global standard set by the Financial Action Task Force and a part of the intergovernmental response to organised crime, said Solicitor-General for India Tushar Mehta. On another day, senior counsel C Aryama Sundaram argued that he would read the judgement “as it stood” to support his …

ED Conducting ‘Fishing’ Enquiries To Implicate People in Money Laundering Cases: Senior Advocate C Aryama Sundaram
1 year, 11 months ago

ED Conducting ‘Fishing’ Enquiries To Implicate People in Money Laundering Cases: Senior Advocate C Aryama Sundaram

Live Law  

Senior Advocate C Aryama Sundaram alleged that the Directorate of Enforcement was conducting ‘fishing’ enquiries to implicate people in money laundering cases. He said: “The Enforcement Directorate proceeds under the Prevention of Money Laundering Act as though it is conducting a fishing expedition. Unlike senior advocate and Member of Parliament Kapil Sibal who told the top court yesterday that the …

ED can only probe money laundering cases, says Delhi HC
2 years, 2 months ago

ED can only probe money laundering cases, says Delhi HC

India TV News  

The Delhi High Court has ruled that the Enforcement Directorate does not hold the power to probe any other offence except money laundering cases and cannot by itself assume that a predicate offence has been committed. A single-judge bench of Justice Yashwant Varma observed that Prevention of Money Laundering Act empowers the ED to investigate Section 3 offences only. Justice …

Narrow view: The Hindu Editorial on the Supreme Court verdict on the Prevention of Money Laundering Act
2 years, 8 months ago

Narrow view: The Hindu Editorial on the Supreme Court verdict on the Prevention of Money Laundering Act

The Hindu  

Narrow view The Supreme Court’s verdict upholding all the controversial provisions of the Prevention of Money Laundering Act falls short of judicial standards of reviewing legislative action. Undergirding every aspect of its analysis is a belief that India’s commitment to the international community on strengthening the domestic legal framework for combating money-laundering is so inviolable that possible violation of fundamental …

Deep dive into top court’s verdict on PMLA ambit, ED powers
2 years, 8 months ago

Deep dive into top court’s verdict on PMLA ambit, ED powers

Hindustan Times  

The Supreme Court, by its judgment on Wednesday, approbated the wide powers of the Enforcement Directorate sanctioned under the 2002 Prevention of Money Laundering Act. Ratifying the agency’s powers to summon individuals, make arrests, conduct raids, and attach properties, the top court justified its special powers to tackle the “heinous” offence of money laundering. In Ishwar Singh Bindra & Ors …

SC upholds ED\'s powers under stringent PMLA
2 years, 8 months ago

SC upholds ED\'s powers under stringent PMLA

Deccan Chronicle  

New Delhi: The Supreme Court on Wednesday upheld the validity of various stringent provisions of the Prevention of Money Laundering Act empowering the Enforcement Directorate to arrest, provisionally attach properties suspected to be the proceeds of crime and is not bound to supply a copy of the ECIR at the time of detaining an accused in a money laundering case. …

Decoding the big SC verdict on Prevention of Money Laundering Act
2 years, 8 months ago

Decoding the big SC verdict on Prevention of Money Laundering Act

India Today  

In an important judgment on Wednesday, the Supreme Court upheld the provisions of the Prevention of Money Laundering Act and retained the powers of the Enforcement Directorate. The Parliament in its wisdom has regarded the property derived or obtained as a result of specified criminal activity, being an offence under the concerned legislation mentioned in the Schedule.” ON TWIN BAIL …

Supreme Court upholds powers of arrest, raids, seizure under PMLA
2 years, 8 months ago

Supreme Court upholds powers of arrest, raids, seizure under PMLA

The Hindu  

The Supreme Court on Wednesday upheld the core amendments made to the Prevention of Money Laundering Act, which gives the government and the Enforcement Directorate virtually unbridled powers of summons, arrest, and raids, and makes bail nearly impossible while shifting the burden of proof of innocence on to the accused rather than the prosecution. The apex court called the PMLA …

Supreme Court upholds power of ED to arrest under PMLA
2 years, 8 months ago

Supreme Court upholds power of ED to arrest under PMLA

Hindustan Times  

The union government on Wednesday received a shot in the arm with the Supreme Court affirming the constitutional validity of the stringent provisions of the Prevention of Money Laundering Act. The bench, which will also comprise justices Dinesh Maheshwari and CT Ravi Kumar, held that the power given to ED for making arrests, conducting search and seizures and attach proceeds …

Money laundering: SC upholds ED’s power to arrest under PMLA
2 years, 8 months ago

Money laundering: SC upholds ED’s power to arrest under PMLA

Live Mint  

The Supreme Court has upheld the power bestowed upon the Enforcement Directorate to arrest under the Prevention of Money Laundering Act. The Supreme Court announced on July 15 that its decision regarding the arguments against the Prevention of Money Laundering Act's provisions is "nearly ready." Mufti contested Section 50's constitutionality as well as any ancillary sections of the 2002 Prevention …

PMLA Is A Penal Statute And Enforcement Directorate Officials Are Police Officers: Kapil Sibal Submits Before Supreme Court
3 years ago

PMLA Is A Penal Statute And Enforcement Directorate Officials Are Police Officers: Kapil Sibal Submits Before Supreme Court

Live Law  

The Supreme Court on Tuesday resumed hearing on a string of petitions challenging the constitutional validity of several provisions of the PMLA Act. Mr. Sibal countered the ED's argument that by virtue of Section 3 of the PMLA, mere acquisition, possession and use of proceeds of crime alone is sufficient to constitute money laundering and the projection of tainted property …

Very concept of offence of money laundering in PMLA is very wide: SC
3 years, 1 month ago

Very concept of offence of money laundering in PMLA is very wide: SC

The Hindu  

The Supreme Court on February 22 said the very concept of the offence of money-laundering in the Prevention of Money Laundering Act is “very wide” and any activity connected with the proceeds of crime is encompassed within the expression of Section 3 of the legislation. Section 3 of the PMLA says whosoever directly or indirectly attempts to indulge or knowingly …

Low Conviction Rates In ED Cases Not A Ground To Decide Validity Of PMLA Provisions, Says Supreme Court During Hearing
3 years, 1 month ago

Low Conviction Rates In ED Cases Not A Ground To Decide Validity Of PMLA Provisions, Says Supreme Court During Hearing

Live Law  

On Wednesday, Senior Advocate Maneka Guruswamy, for one of the petitioners, had told the Court that of the 1700 raids conducted and 1569 specific investigations by the ED- with rates increasing by 20% every year, and then doubling and tripling- since 2011, only 9 convictions have been secured. What has happened and what has not happened in a particular individual …

PMLA Interpretation: Senior Lawyers Question Constitutionality Of Bail, Arrest & Attachment Procedure
3 years, 1 month ago

PMLA Interpretation: Senior Lawyers Question Constitutionality Of Bail, Arrest & Attachment Procedure

Live Law  

The Supreme Court on Wednesday continued hearing the batch of petitions concerned with the interpretation of the Prevention of Money Laundering Act, 2002.The matter was listed before the bench of Justices AM Khanwilkar, Dinesh Maheshwari and CT Ravikumar.Submission Of CounselsSubstance Of PMLA Is That It's Impossible For Accused & Judge Per Se To Give Bail Which Amounts To. Explanation Under …

PMLA Reverses Burden Of Proof Without Safeguards; Gives Unchecked Powers To ED To Take Over Properties : Singhvi To Supreme Court
3 years, 1 month ago

PMLA Reverses Burden Of Proof Without Safeguards; Gives Unchecked Powers To ED To Take Over Properties : Singhvi To Supreme Court

Live Law  

The Supreme Court on Tuesday continued hearing the batch of petitions concerned with the interpretation of the Prevention of Money Laundering Act, 2002.The matter was listed before the bench of Justices AM Khanwilkar, Dinesh Maheshwari and CT Ravikumar.Submissions Of Senior Advocate AM SinghviSection 24 Gives Presumption Regarding The Offense Without Giving Any Safeguard With. Submissions Of Senior Advocate AM Singhvi …

‘Arbitrary, coercive’: Karti Chidambaram challenges constitutional validity of PMLA
3 years, 11 months ago

‘Arbitrary, coercive’: Karti Chidambaram challenges constitutional validity of PMLA

Hindustan Times  

Former Union finance minister P Chidambaram’s son and Congress MP Karti Chidambaram has challenged the constitutional validity of the Prevention of Money Laundering Act In his petition, reviewed by HT. The Central Bureau of Investigation arrested Karti Chidambaram on February 28, 2018, in the INX Media case while his father and former Union finance minister P Chidambaram’s dramatic arrest took …

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002
3 years, 11 months ago

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002

Live Law  

The commission of offences dealing with the crime of money laundering, in India, has increased considerably in the last decade or so with huge scandals being uncovered on a regular basis. Thereafter, vide the amendment carried out in 2015 the definition of "proceeds of crime" read as follows: "any property derived or obtained, directly or indirectly, by any person as …

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002
3 years, 11 months ago

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002

Live Law  

The commission of offences dealing with the crime of money laundering, in India, has increased considerably in the last decade or so with huge scandals being uncovered on a regular basis. Thereafter, vide the amendment carried out in 2015 the definition of "proceeds of crime" read as follows: "any property derived or obtained, directly or indirectly, by any person as …

PMLA- Even If Predicate Offence Is Compromised, Compounded, Quashed, ED's Investigation Is Not Affected Or Wiped Away: Bombay High Court
4 years ago

PMLA- Even If Predicate Offence Is Compromised, Compounded, Quashed, ED's Investigation Is Not Affected Or Wiped Away: Bombay High Court

Live Law  

The Bombay High Court recently held that the Enforcement Directorate could continue investigation into cases of money-laundering even after investigation into the base/scheduled offences were closed. Even if the Predicate/Scheduled Offence is compromised, compounded, quashed or the accused therein is/are acquitted, the investigation of ED under PMLA does not get affected, wiped away or ceased to continue." In Court, their …

Prevention Of Money Laundering Act, 2002: An Inherently Flawed Legislation?
4 years, 11 months ago

Prevention Of Money Laundering Act, 2002: An Inherently Flawed Legislation?

Live Law  

Money laundering is a process of projection of tainted money as an untainted one. Director of enforcement, Delhi high court held that after the acquittal of a person from a scheduled offence, his trial for an offence under section 3 of PMLA would not survive while observing that it was hard to imagine as to how a trial for an …

Prevention Of Money Laundering Act: Delhi HC Upholds Constitutional Validity Of Proviso Allowing Provisional Attachment Of Properties [Read Judgment]
7 years, 2 months ago

Prevention Of Money Laundering Act: Delhi HC Upholds Constitutional Validity Of Proviso Allowing Provisional Attachment Of Properties [Read Judgment]

Live Law  

The Delhi High Court, on Thursday, upheld Constitutional validity of the second proviso to Section 5 of Prevention of Money laundering Act, 2002, which empowers the Enforcement Directorate to provisionally attach the properties allegedly bought from proceeds of crime.The Court was hearing a bunch of nineteen Petitions challenging the proviso as being ultra vires Article 14 of. The Delhi High …

Prevention Of Money Laundering Act: Delhi HC Upholds Constitutional Validity Of Proviso Allowing Provisional Attachment Of Properties [Read Judgment]
7 years, 2 months ago

Prevention Of Money Laundering Act: Delhi HC Upholds Constitutional Validity Of Proviso Allowing Provisional Attachment Of Properties [Read Judgment]

Live Law  

The Delhi High Court, on Thursday, upheld Constitutional validity of the second proviso to Section 5 of Prevention of Money laundering Act, 2002, which empowers the Enforcement Directorate to provisionally attach the properties allegedly bought from proceeds of crime.The Court was hearing a bunch of nineteen Petitions challenging the proviso as being ultra vires Article 14 of. The Delhi High …

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