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...

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...

Seizure Of ₹2 Crore, Gold Bar From Govt Officer's Home Can't Relate To Official Act; Sanction For Prosecution Not Needed: Rajasthan High Court

The Rajasthan High Court dismissed a public servant's plea booked in a corruption case who had challenged an order taking cognizance of offences under PMLA on the ground that no prior sanction was taken as per Section 218 BNSS.In doing so the court observed that there were over Rs 2 crore cash and a gold bar worth over Rs 60 Lakh seized from the petitioner's residence and the same cannot relate to any act allegedly committed in discharge of the public servant's duty; thus prior sanction for...

ED Can Treat Coal Block Allocation Obtained By Deceit As 'Property' Involved In Money Laundering: Delhi High Court

The Delhi High Court has held that coal block allocation obtained through misrepresentation or fraud leading to proceeds of crime amounts to an offence of money laundering under the PMLA.A division bench comprising Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar said that obtaining financial benefits in the form of profits earned from the extraction and sale of coal or through the usage of financial benefits to substitute or derive assets qualifies as proceeds of crime.The...

Delhi High Court Says ED's Approach Of Not Arresting Main Accused 'Arbitrary', Grants Bail To Others

The Delhi High Court has granted bail to three men in a money laundering case, while saying that the approach of the Enforcement Directorate (ED) in not arresting the main accused with graver role was “manifestly arbitrary.”“Having not arrested an accused who appears to have a graver role than the applicants and not even arraigned a person named to have facilitated in arranging the mule accounts, the approach adopted by the respondent department prima facie appears to be manifestly arbitrary and...

Confirmation Of Attachment Under PMLA Does Not Authorize Property Retention, Valid Order Must: Delhi High Court

The Delhi High Court has observed that the confirmation of attachment of property involved in money laundering under Section 8(3) of PMLA does not authorize retention of such a property, as the process requires a valid order to be passed under Section 20. A division bench comprising Justice Subramonium Prasad and Justice Harish Vaidyanathan Shankar said that the procedural safeguards contained in Section 20, which deals with retention of property, are substantive in character and cannot be...

Supreme Court Directions Extending Limitation Period During COVID Apply To Attachment Proceedings Under PMLA: Delhi High Court

The Delhi High Court has ruled that the suo motu directions of the Supreme Court extending limitation periods in light of COVID-19 pandemic also apply to adjudication process and confirmation of attachment of properties under Section 8 of the PMLA.A division bench comprising Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar said:“…it is evident that the orders of the Hon'ble Supreme Court in In re: Cognizance for Extension of Limitation (supra) were intended to extend limitation...

Karnataka High Court Seeks ED's Response On Plea For Interim Release Of Congress MLA Arrested In Alleged Illegal Betting Case

The Karnataka High Court on Wednesday (September 24) asked the Enforcement Directorate to get instructions on a plea filed by wife of Congress MLA K.C Veerendra arrested in alleged illegal betting case, seeking interim release from custody for 2-3 days on account on Dusshera festival. Justice MI Arun was hearing petitioner R D Chaitra's plea seeking to declare his arrest as illegal, arbitrary and violative of his fundamental rights under Article 19 & 21 and to release him. After hearing...

Defrauded Money Not Taxable Income Of Company Or Director, Would Constitute Proceeds Of Crime Under PMLA: Delhi High Court

The Delhi High Court has observed that defrauded money is not a taxable income of a company or its director but would constitute proceeds of crime under the Prevention of Money Laundering Act, 2002. Justice Neena Bansal Krishna said that to treat such amounts as taxable income recoverable by the Income Tax Department, prior to the conclusion of the PMLA trial or adjudication, would be erroneous. The Court dismissed a plea filed by the Asst. Commissioner of Income Tax challenging a trial court...