PMLA
NCLT Asks SFIO To Clarify Whether It Verified Karti Chidambaram's PAN Before Freezing His Wife's Accounts
The National Company Law Tribunal (NCLT) at Chennai on Wednesday asked the Serious Fraud Investigation Office to clarify whether it independently verified fomer MP Karti Chidambaram's PAN before seeking freezing of the bank accounts of his wife, Dr. Srinidhi Karti Chidambaram, and directed the agency to file a response by December 9 The bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam noted that SFIO had admitted in tribunal that there were no proceedings...
Sandesara Settlement and Constitutional Perimeter Of Closure Of Criminal Cases
The Supreme Court's order dated 19 November 2025 in Hemant S. Hathi v. Central Bureau of Investigation [2025 Livelaw (SC) 1139] represents an extraordinary culmination of multiple criminal, regulatory and attachment proceedings arising from the affairs of the Sterling group. Acting on what it repeatedly describes as the “peculiar facts” of the case, the Court directed that all such proceedings be quashed upon deposit of a consolidated sum of ₹5100 crore.This belongs to a small category of cases...
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...
Supreme Court Seeks ED's Response On Ex-Tamil Nadu Minister Senthil Balaji's Plea To Relax Bail Conditions In Money Laundering Case
The Supreme Court today issued notice on an application filed by ex-Tamil Nadu Minister V Senthil Balaji seeking relaxation of his bail conditions in the money laundering case arising out of the cash-for-jobs 'scam'.A bench of Justices Surya Kant and Joymalya Bagchi passed the order, after hearing Senior Advocates Kapil Sibal and Narendra Hooda. Advocate Zoheb Hossain appeared for ED and Senior Advocate Gopal Sankaranarayanan represented complainant-Y Balaji.During the hearing, Sibal...
VC Rules No Shelter For PMLA Accused To Evade Physical Appearance In ED Probe: Delhi High Court
The Delhi High Court on Tuesday ruled that the videoconferencing rules do not operate as a shelter for a money laundering accused to evade physical and mandatory appearance in investigation by the Enforcement Directorate (ED). Justice Neena Bansal Krishna observed that VC facility is a measure to facilitate evidence recording, not to protect an absconding accused from facing mandatory investigation.Observing that VC was introduced to facilitate the progress of trial and to cause minimum...
Provisional Attachment Order Can't Be Challenged In Writ Jurisdiction When Alternative Remedy Under PMLA Exists: Delhi High Court
The Delhi High Court has observed that the provisional attachment order (PAO) cannot be challenged in the writ jurisdiction when an alternative remedy is available under the Prevention of Money Laundering Act, 2002.Justice Sachin Datta rejected a batch of petitions filed by Ms Krrish Realtech Pvt Ltd and its affiliates, including director Amit Katyal, challenging the Enforcement Directorate's (ED) PAOs. It was the petitioners' case is that they had initially approached the Supreme Court...
Profits Earned On Bribe After Investment In Share Market Also Part Of Proceeds Of Crime, Can Be Attached Under PMLA: Delhi High Court
The Delhi High Court on Monday ruled that the profits earned on bribe money after investment in share market amounts to proceeds of crime and is liable to be attached under the PMLA. A division bench comprising Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar said that the appreciation in value does not cleanse or purify the “tainted origin,” since the augmented value is inextricably and indirectly derived from the original illicit source of bribe.“…if a public servant receives a...