PMLA&FEMA
Supreme Court To First Hear ED's Objections To Maintainability Of Review Petitions Against Judgment Upholding PMLA Provisions
The Supreme Court on Thursday (July 3) observed that it will first hear the issue of maintainability of the review petitions filed against the Vijay Madanlal Choudhary judgement, which upheld various provisions of the Prevention of Money Laundering Act (PMLA), before going into other issues raised by the petitioners.Clarifying the above, a bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh posted the review petitions for hearing on August 6.During the brief hearing today,...
Supreme Court Stays PMLA Trial In Case Where Chargesheet In Predicate Offence Not Filed For 7 Yrs
The Supreme Court recently stayed trial against 4 accused in a case under the Prevention of Money Laundering Act where chargesheet had not been filed in the predicate offense since 7 years. A bench of Justices Vikram Nath and Sandeep Mehta passed the order after hearing Senior Advocate PB Suresh (on behalf of the petitioners), who argued that the petitioners were not named in the predicate offense and questioned how trial could proceed in the PMLA case when chargesheet had not been filed in...
'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...
Whether Discharge In Predicate Offence Automatically Invalidates PMLA Proceedings? Supreme Court To Consider
The Supreme Court is set to consider the issue as to whether discharge in the predicate/scheduled offence would automatically invalidate proceedings initiated under the Prevention of Money Laundering Act.A bench of Justices Surya Kant and Joymalya Bagchi is dealing with the challenge to a Jammu and Kashmir and Ladakh High Court order, which held that discharge in the predicate offence does not automatically invalidate PMLA proceedings.Notice was issued on the petition in the parting Court...
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...
'Pankaj Bansal' Judgment On Supply Of Grounds Of Arrest Applies Only Prospectively, Argues Karnataka Govt In Supreme Court
In a case filed by the State of Karnataka, the Supreme Court is likely to consider the issue as to whether its judgment in Pankaj Bansal v. Union of India, which held that the Directorate of Enforcement (ED) must furnish grounds of arrest to the accused in writing, is retrospective in application.A bench of Justices KV Viswanathan and N Kotiswar Singh heard the matter yesterday and adjourned it to June 26.The case assails decision dated 17.04.2025 rendered by the Karnataka High Court holding...
Supreme Court Issues Notice On Plea Challenging Validity Of S. 50 & 63 Of PMLA On ED's Summoning Powers
A writ petition has been filed in the Supreme Court challenging the Constitutional validity of S.50 and S.63 of the Prevention of Money Laundering Act, 2002 (PMLA). The plea states that the impugned provisions are violative of Articles 14, 20,21 and 300A of the Constitution. Last week, a bench comprising Chief Justice of India BR Gavai and Justice AG Masih issued notice to the Union on the petition and tagged it with a similar matter (WP(Crl) 65/2023)Notably, S. 50 of the PMLA provides...
Chhattisgarh Liquor Scam | 'No Possibility Of Trial Commencing In Near Future' : Supreme Court Grants Bail To PMLA Accused
The Supreme Court on Monday(May 19) granted bail to Anwar Dhebar, businessman and brother of former Raipur Mayor Aijaz Dhebar, accused in a money laundering case arising out of the alleged Rs. 2,000 crore Chhattisgarh liquor scam.A bench of Justice Abhay S Oka and Justice Ujjal Bhuyan observed that the maximum sentence prescribed for the offence is seven years and that there is no possibility of the trial commencing in the near future.“Following the law laid down in the case of Senthil...
Review Petitions Against PMLA Judgment Can't Go Beyond 2 Issues : Union Tells Supreme Court
In the review petitions filed against the Vijay Madanlal Choudhary judgement, which upheld various provisions of the Prevention of Money Laundering Act (PMLA), the Union Government told the Supreme Court on Wednesday (May 7) that the review hearing cannot go beyond the two specific issues which were orally flagged by the bench which issued notice in August 2022.A bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh held a brief hearing of the review petitions today. At the...
PMLA Review: Supreme Court Reconstitutes Bench To Hear Pleas Against Vijay Madanlal Choudhary Judgment; Listed On May 7
The Supreme Court will hear on May 7 the review petitions filed against the Vijay Madanlal Choudhary judgement, which upheld various provisions of the Prevention of Money Laundering Act (PMLA).It may be recalled that a bench of Justices Surya Kant, CT Ravikumar (now retired) and Ujjal Bhuyan was dealing with the matter. However, after the retirement of Justice Ravikumar, a need arose for reconstitution of the bench.The bench now stands reconstituted with the addition of Justice N Kotiswar Singh,...
Proceedings U/S 37 A Of FEMA Can't Be Continued During Moratorium U/S 33(5) Of IBC: Calcutta High Court
The Calcutta High Court bench of Justice Jay Sengupta has held that once a liquidation order against the Corporate Debtor is passed, all proceedings including those pending at the time of such order under the Foreign Exchange Management Act, 1999 (FEMA) cannot be continued, nor can any new proceedings be initiated, in view of the bar under Section 33(5) of the Insolvency and Bankruptcy Code, 2016 (Code). This is further reinforced by the non obstante clause under Section 238 of the Code,...