PMLA&FEMA
SAFEMA Tribunal Sets Aside Forfeiture Of Property Bought Nine Years Before Smuggling Offence
A property purchased nine years before a smuggling offence cannot be forfeited on mere assumption that it was funded through illegal earnings, the Appellate Tribunal under SAFEMA has held, setting aside a 2023 forfeiture order against a Karaikal resident. The tribunal held that the competent authority failed to establish any “link or nexus” between the 1990 purchase of the property and a 1999 smuggling case. Member V. Anandarajan observed that the authority had acted on assumption without...
Special PMLA Court Discharges DHFL From Money Laundering Case After Insolvency Resolution
The Special Court under the Prevention of Money Laundering Act at Mumbai has discharged Dewan Housing Finance Corporation Limited (DHFL) from the money-laundering case linked to former Yes Bank Managing Director and CEO Rana Kapoor. Additional Sessions Judge R. B. Rote held that the company could not be prosecuted after its insolvency resolution resulted in a complete change in management. DHFL, now known as Piramal Capital and Housing Finance Limited, had approached the Special Court seeking...
Bombay High Court Refuses To Quash FIR, ED Probe Against Ex-Religare Chairperson Rashmi Saluja
The Bombay High Court has dismissed writ petitions filed by Dr Rashmi Saluja, former Executive Chairperson and key managerial person of Religare Enterprises Limited (REL), challenging an FIR registered against her in September 2024 and the proceedings initiated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act. A Division Bench of Chief Justice Shree Chandrashekhar and Justice Gautam A Ankhad refused to interfere with and FIR registered at Matunga Police Station,...
Non-Bailable Warrants Can't Be Issued Against Person Summoned As Witness Or Suspect During ED Probe: Delhi High Court
The Delhi High Court has held that non-bailable warrants (NBWs) can't be issued against a person who has only been summoned as a witness or suspect in a money-laundering investigation, unless such person is shown to be accused of non-bailable offence.Justice Amit Sharma thus quashed the NBWs issued by the Enforcement Directorate against UK-based businessman Sachin Dev Duggal in connection with money laundering allegations.ED had sought issuance of NBWs on the ground that Petitioner failed to...
Karnataka High Court Issues Notice To ED On WinZO's Plea Challenging Search, Seizure In PMLA Probe
The Karnataka High Court on Monday issued notice to the Enforcement Directorate (ED) on a petition filed by an online gaming company, Winzo Pvt Ltd, seeking to declare that the search and seizure carried out by the ED at its office between 18.11.2025 and 22.11.2025 in furtherance of an investigation in a money laundering case is illegal and void.Justice Suraj Govindaraj issued notice and directed the ED to file its response to the petition and posted the matter for further hearing on December...
Supreme Court Restores Property Of Corporate Debtor Attached Under PMLA To Successful Resolution Applicant
The Supreme Court recently reiterated that the objective of Section 8(8) of the Prevention of Money Laundering Act(PMLA) is to ultimately restore any attached properties to the bonafide successful resolution application(SRA) who have a legitimate interest in it.Section 8(8) allows the Special Court to direct the Central Government to restore property that has been confiscated under the Act to a person or claimant who has a legitimate interest in it, upon conclusion of the trial. However, second...
Property From Illegal Cricket Betting Activities Constitutes 'Proceeds Of Crime', Can Be Attached By ED: Delhi High Court
The Delhi High Court has held that though cricket betting is not a separate predicate offence under Prevention of Money Laundering Act, 2002, the property generated from such illegal activities can be attached by the Enforcement Directorate.A division bench of Justices Anil Kshetarpal and Harish Vaidyanathan Shankar observed that the scope of Section 2(1)(u) PMLA, which defines proceeds of crime, is very wide.“Even if a downstream activity, such as conducting betting, is not a scheduled offence,...
Sandesara–Sterling Group Loan Fraud | Supreme Court Quashes Criminal Cases After Accused Agree To Pay Rs 5,100 Crore To Banks
The Supreme Court recently quashed all criminal and civil proceedings against Hemant S. Hathi and Chetan Jayantilal, accused in the Sandesara–Sterling Group bank fraud case, after they agreed to deposit Rs 5,100 crore as full and final settlement with lender banks.A bench of Justice JK Maheshwari and Justice Vijay Bishnoi, however, clarified that the directions were issued in the peculiar facts of the case with the purpose of protecting public money, and will not operate as a precedent.“it is...
ED Search Under PMLA Not Restricted To Persons Named In Complaint, Covers Those In Possession Of Proceeds Of Crime: Delhi High Court
The Delhi High Court on Friday clarified that Section 17 of the Prevention of Money Laundering Act (PMLA) does not restrict the Enforcement Directorate (ED) to conduct searches only at the premises of persons who have been named in the prosecution complaint. A division bench comprising Justice Vivek Chaudhary and Justice Manoj Jain said that the provision of search also covers those individuals who are in possession of proceeds of crime but still may not be accused of any scheduled offence or...
Supplementary Complaint Under PMLA Doesn't Require Fresh Cognizance: Madras High Court
The Madras High Court recently observed that a supplementary complaint under Section 44 of the Prevention of Money Laundering Act is not a fresh or independent complaint requiring the court to take cognisance. The bench of Justice SM Subramaniam and Justice Mohammed Shaffiq held that a supplementary complaint is a part and parcel of the main complaint for which cognisance has already been taken. The court added that taking multiple cognisance for the same offence would render the...
Delhi High Court Slams ED For Freezing Woman's Bank Accounts By Issuing 'Cryptic' Orders, Says 'Suspicion' Not 'Reason To Believe'
The Delhi High Court on Friday slammed the Enforcement Directorate (ED) for freezing bank accounts of a woman on mere suspicion, while setting aside the agency's orders calling them “cryptic” in nature. A division bench comprising Justice Subramonium Prasad and Justice Harish Vaidyanathan Shankar observed that “suspicion” cannot be equated to a “reason to believe” and cannot also be equated with a “prima facie” opinion.“The freezing orders dated 05.09.2018 themselves do not disclose any such...