Directorate of Enforcement

Arrests under PMLA: Arrest first, reasons to follow?

INTRODUCTION

Vide order dated March 20, 2024, the Hon’ble Supreme Court of India rejected a petition[1] preferred by the Union of India, seeking a review of the judgement passed in Pankaj Bansal v Union of India[2](“Pankaj Bansal”), wherein it was held that it was mandatory for the Directorate of Enforcement (“ED”) to provide written ‘reasons for arrest’ to a person arrested under the provisions of the Prevention of Money Laundering Act, 2002 (“PMLA”).Continue Reading Arrests under PMLA: Arrest first, reasons to follow?

Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court

INTRODUCTION

In a recent judgement of Pavana Dibbur v. The Directorate of Enforcement[1], the Hon’ble Supreme Court has held that the offence of criminal conspiracy punishable under Section 120B of the Indian Penal Code, 1860 (“IPC”), will be attributed as a scheduled offence under the Prevention of Money Laundering Act, 2002 (“PMLA / Act”), only if the alleged criminal conspiracy is associated with committing of a scheduled offence, i.e. an offence specifically included in the Schedule to the PMLA. The Hon’ble Court held that if the offence of alleged criminal conspiracy is related to any other offence, which does not form a part of the Schedule to the PMLA, then the alleged criminal conspiracy by itself shall not be considered as a “scheduled offence” under the regime of the PMLA and hence, no person can be held liable and be prosecuted for it.[2]Continue Reading Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court

Right to Be Informed: Communicate Written Grounds of Arrest , SC Tells ED

The Supreme Court of India has recently taken important strides towards protecting personal liberty and curbing indiscriminate exercise of power by the Directorate of Enforcement (“ED”). In a fresh judgment in Pankaj Bansal v. Union of India[1], the Supreme Court has criticised disparate procedures being used by various officers of the ED across the country while arresting a person accused of committing an offence under the Prevention of Money Laundering Act, 2002 (“PMLA”), mandating that the provision of written grounds of arrest be provided to the arrested person as a matter of course and without exception.Continue Reading Right to Be Informed: Communicate Written Grounds of Arrest, SC Tells ED