Being 'Sick And Infirm' Not Automatic Passport For Bail In PMLA, Medical Plea Can't Override Gravity Of Offence: Delhi High Court

Underscoring that being “sick and infirm” is not an automatic passport for bail in PMLA cases, the Delhi High Court has observed that medical plea cannot override the gravity of offence of money laundering. Justice Ravinder Dudeja observed that illness warrants bail only when treatment in custody is clearly inadequate. “Therefore, the medical plea cannot override the gravity of the offence, societal interest, and the statutory rigour governing such matters,” the Court said. The judge made the...

[Section 223 BNSS] Cognizance On ED Complaint Can't Be Taken Without Hearing Accused: Delhi High Court

The Delhi High Court has observed that special court cannot take cognizance of the complaint filed by Enforcement Directorate (ED) without giving opportunity of hearing to the accused.Justice Ravinder Dudeja set aside a special judge order dismissing the application of an accused in a PMLA case seeking a pre cognizance hearing in the money laundering case in terms of proviso to Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023.The Court said that the impugned order failed to...

'When Pre-Cognizance Hearing U/S 223(1) BNSS Is Not Conducted, Further Proceedings Are A Nullity In Law': Calcutta High Court

The Calcutta High Court has set aside an order taking cognizance of proceedings initiated under the Prevention of Money Laundering (PMLA) Act, upon observing that cognizance had been taken by the special court, without complying with the mandatory requirement of holding a pre-cognizance hearing under Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita (BNSS).Justice Sabyasachi Bhattacharya held: "In view of the above findings, the impugned order dated February 15, 2025, taking cognizance of...

SC's Vijay Madanlal Judgment Doesn't Exempt Foreign Recipients Of Proceeds Of Crime From Scrutiny On Mere Contractual Legitimacy Of Transaction: Delhi HC

The Delhi High Court has made it clear that foreign recipients of proceeds of crime are not exempted from scrutiny under the Prevention of Money Laundering Act, 2002, on a mere ground of 'contractual legitimacy' of transactions.Justice Ravinder Dudeja thus rejected the plea of one Amrit Pal Singh, a resident of Hong Kong for the past 17 years, being probed by the Enforcement Directorate.As per facts, Singh's company received fraudulent foreign outward remittances amounting to USD 2,880,210...

S.17 PMLA | Can't Direct ED To Serve 'Reasons To Believe' Before Conducting Search, May Lead To Concealment Of Evidence: Madras High Court

The Madras High Court has held that it cannot issue an omnibus direction mandating the Enforcement Directorate to serve 'reason to believe' the commission of money laundering offence before conducting a search in terms of Section 17 PMLA, as the same may alert the suspect to conceal evidence."Section 17 is a preliminary stage where based on some information in possession the ED search is conducted and if no prima facie case is made out, automatically all action is dropped, but if any...

Madras High Court Reserves Orders On Pleas Challenging ED Search At TASMAC Headquarters, Verdict Likely On April 23

The Madras High Court has reserved orders on pleas filed by the State Government and the Tamil Nadu State Marketing Corporation challenging the recent searches conducted by the Enforcement Directorate on the TASMAC headquarters on March 6 and March 8. The bench of Justice SM Subramaniam and Justice K Rajasekar reserved the orders today after hearing Senior Advocate Vikas Singh for TASMAC. In the previous hearing itself the court had said that it would reserve the orders but gave a special...

PMLA | Not Mandatory For Court To Conclude That Accused Is Innocent Before Granting Bail: Punjab & Haryana High Court

The Punjab & Haryana High Court has said that for the purpose of granting bail to an accused under the Prevention of Money Laundering Act (PMLA), it is not a mandatory requirement that the Court must arrive at a finding that the petitioner had not committed any offence under the PMLA.Justice N.S. Shekhawat said, "Therefore, this Court has no hesitation to hold that the restrictions, while considering the matter of bail, are required to be construed reasonably. If the Court comes to the...

BNSS & BSA Grant Discretion To Summon, Examine Witnesses Allowing Trial Courts To Determine How To Proceed In PMLA Cases: Kerala High Court

The Kerala High Court has held that Bharatiya Nagarik Suraksha Sanhita (BNSS) and Bharatiya Sakshiya Adhiniyam (BSA) grant discretion in the manner for summoning and examining witnesses, allowing the Trial Court to determine whether to proceed with the PMLA trial or to keep it in abeyance until the predicate offence trial is concluded.A division bench of Justice A.Muhamed Mustaque and Justice P. Krishna Kumar observed that delaying the PMLA trial until the conclusion of the trial in the...

PMLA | For Acts Done Prior To Enactment Penalty Follows Only If Proceeds Of Crime Are Utilized, Article 20(1) Is Not Violated: Kerala HC

The Kerala High Court has held that Prevention of Money-Laundering Act, 2002 does not penalize a person for his past actions, but penal consequences only follow when the accused utilizes the proceeds of the crime from past actions for money laundering after the enactment of PMLA and the amendment to its schedule in 2009. The Court thus held that Section 3 of the PMLA criminalizes the act of money laundering and does not violate Article 20(1) of the Constitution.The appellant/petitioners had...

Mandate Of Serving Grounds Of Arrest In Writing Under UAPA Applies To Arrests From Date Of SC's Pankaj Bansal Ruling: Delhi High Court

The Delhi High Court on Thursday ruled that the mandate of serving grounds of arrest in writing to an arrestee under UAPA will apply to arrests from the date of pronouncement of Supreme Court ruling in Pankaj Bansal case delivered on October 03, 2023, and not from the date of pronouncement of subsequent decision in Prabir Purkayastha case.“…..the ratio of Pankaj Bansal would apply to arrests under the UAPA and other criminal offences from the date of pronouncement of Pankaj Bansal (i.e.,...

Karnataka High Court Allows ED To Access Aadhar Database For Probing Case Under PMLA

The Karnataka High Court has allowed a petition filed by Enforcement Directorate (ED) and directed the Unique Identification Authority of India (UIDAI) to permit ED to examine the Aadhar database of 21 persons including the identity information or authentication records, while probing a case registered under the Prevention of Money Laundering Act. A single judge, Justice Hemant Chandangoudar while allowing the petition said “An investigation into an offence of money laundering being...

No Violation Of Natural Justice Principles If Accused Not Given Advance Copy Of S. 50 PMLA Application: Allahabad HC

The Allahabad High Court has recently observed that not providing an advanced copy of the application filed by the Director of Enforcement (ED) under Section 50 of the Prevention of Money Laundering Act, 2002, to the accused does not violate the principles of natural justice, as the accused has no right to oppose it. For context, under Section 50 of the PMLA, an ED officer is authorised to summon a person and request information from him regarding the case under the 2002 Act. It...