Prevention of Money Laundering Act

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

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

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