Summary: This blog compares Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (“BNSS”), with Section 200 of the erstwhile Criminal Procedure Code, 1973 (“CrPC”). The analysis highlights how the new provision introduces an additional safeguard against prosecution for non-executive directors.Continue Reading Criminal Liability of Non-Executive Directors: A New Ray of Hope
A recent decision rendered by the Madras High Court in S. Srinivasan v. The Assistant Director, Directorate of Enforcement, Chennai[1], has held that being in possession of the proceeds of crime and claiming it to be untainted property can independently be perceived as money laundering under Section 3 of the Prevention of Money Laundering Act, 2002 (“PMLA”).
Although the said decision is in line with the principles previously enunciated by various courts while interpreting the PMLA provisions, such a simple interpretation may possibly lead to unintended situations. The primary reason being that anyone who is merely in possession of proceeds of crime without any genuine knowledge or any involvement therein can be prosecuted under PMLA. This perspective may prove to be counterproductive to the principle of presumption of innocence in criminal law.Continue Reading Is mere possession of proceeds of crime sufficient for trigerring PMLA?