PMLA&FEMA
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...
Legal Heirs Have Right To Seek Impleadment In Pending Appeals Under FEMA: Delhi High Court
The Delhi High Court has observed that legal heirs have right to seek Impleadment after the appellant's death in pending appeals under the Foreign Exchange Regulation Act, 1973, and the Foreign Exchange Management Act, 1999. “…the right to seek impleadment of legal heirs in such circumstances is not one that arises dehors the statute; rather, it is one that is expressly recognised and preserved within the statutory framework of both FERA, 1973 and FEMA, 1999,” Justice Swarana Kanta Sharma...
Vasai-Virar Illegal Constructions Case: Supreme Court Issues Notice On ED's Challenge To HC Quashing Arrest Of IAS Officer
The Supreme Court today issued notice on a plea filed by the Enforcement Directorate challenging Bombay High Court's declaration of suspended IAS officer and Vasai Virar City Municipal Commissioner Anilkumar Pawar's arrest as illegal.A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after hearing Additional Solicitor General SV Raju (for ED). On a specific Court query, the ASG informed that the photographs of ornaments (stated to be recovered during raids) were taken prior...
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...
Supreme Court Refuses To Quash Money Laundering Case Against JSW Steel Over Dealings With Obulapuram Mining Company
The Supreme Court today refused to quash PMLA proceedings against JSW Steel Limited in relation to alleged illegal mining by mining companies owned by former Karnataka minister G. Janardhana Reddy.A bench of Justice Dipankar Datta and Justice Augustine George Masih noted that JSW steel is no more an accused in the predicate offence investigated by the CBI, and the ECIR also doesn't name JSW Steel as an accused. The Court noted that ED's money laundering complaint was based only on...
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...
'Stranger' Facing No Direct Prejudice Can't Seek Cancellation Of Bail: P&H High Court Declines Plea Against IREO MD's Bail In PMLA Case
The Punjab and Haryana High Court has refused to cancel the bail granted to the Managing Director of IREO Group, observing that a stranger to the case, who has not suffered any direct prejudice, has no legal standing to seek cancellation of bail.A plea for cancellation was filed by a person stating to be a practising Advocate and a "prospective home buyer", alleging that the MD has transferred his property despite a restriction, and the inaction on the part of the Enforcement Directorate (ED)...