Enforcement Directorate

Tarsem Lal v Directorate of Enforcement: Supreme Court further clarifies PMLA framework

OVERVIEW:

Through a series of recent judgements, the Hon’ble Supreme Court has outlined limits to the Directorate of Enforcement’s (“ED”) powers under the Prevention of Money Laundering Act, 2002 (“PMLA”). Resultantly, issues that were rather ambiguous are now a lot clearer.Continue Reading Tarsem Lal v Directorate of Enforcement: Supreme Court further clarifies PMLA framework

ED cannot arrest accused once cognizance is taken by the Special Court under PMLA: Supreme Court

Introduction:

In Tarsem Lal v. Directorate of Enforcement Jalandhar Zonal Office,[1] the bench comprising Justices Abhay S. Oka and Ujjal Bhuyan of the Supreme Court (“SC”) held on (i) the Enforcement Directorate’s (“ED”) powers of arrest under Section 19 of the Prevention of Money Laundering Act, 2002[2] (“PMLA”), once cognizance is taken of a PMLA complaint under Section 44(1)(b) of the PMLA,[3] and (ii) the applicability of the twin conditions of bail under Section 45 of the PMLA[4] in instances where the accused has furnished a bond in accordance with Section 88 of the Code of Criminal Procedure, 1973[5] (“CrPC”), for appearance in court following summons. In this significant decision, the SC essentially addresses the extent of the ED’s powers of arrest and applicability of the stringent twin conditions of bail under Section 45 of the PMLA once the Special Court has taken cognizance of a complaint under Section 44 of the PMLA.Continue Reading ED cannot arrest accused once cognizance is taken by the Special Court under PMLA: Supreme Court

Bombay High Court upholds NCLT’s decision to release ED attached properties after nod to IBC Resolution Plan

The High Court of Bombay (“Court”) in a recent judgment[1] has upheld the NCLT’s powers to direct the Directorate of Enforcement (“ED”) to release attached properties of a corporate debtor, once a resolution plan in respect of the corporate debtor had been approved. The Court’s decision was based on an interpretation of Section 32A of the Insolvency and Bankruptcy Code, 2016 (“IBC”).Continue Reading Bombay High Court upholds NCLT’s decision to release ED attached properties after nod to IBC Resolution Plan

Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate

Background:

In the realm of law enforcement, transparency and accountability are indispensable pillars upholding the democratic values of a society. The Directorate of Enforcement (“ED”), tasked with investigating and prosecuting economic offenses, plays a vital role in maintaining financial integrity. However, concerns surrounding the lack of transparency in some of the arrests made by the ED have been raised.Continue Reading Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate

Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate

Background:

In the realm of law enforcement, transparency and accountability are indispensable pillars upholding the democratic values of a society. The Directorate of Enforcement (“ED”), tasked with investigating and prosecuting economic offenses, plays a vital role in maintaining financial integrity. However, concerns surrounding the lack of transparency in some of the arrests made by the ED have been raised.Continue Reading Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate