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)...

Allowing Retention Of Seized Property Without Strictly Following PMLA Undermines Purpose Of Procedural Safeguards: Delhi High Court

The Delhi High Court on Friday ruled that allowing retention of seized property without strict adherence to PMLA provisions would amount to a violation of the legislative mandate of the enactment and would undermine the very purpose of incorporating procedural safeguards therein.A division bench comprising Justice Subramonium Prasad and Justice Harish Vaidyanathan Shankar said that the processes of search, seizure, freezing, attachment, and retention under PMLA are embedded with procedural...

'Remained Uncooperative': Punjab & Haryana High Court Rejects Ex-MLA Dharam Singh Chokker's Plea Challenging ED Arrest In PMLA Case

The Punjab and Haryana High Court has dismissed the petition filed by former Haryana MLA Dharam Singh Chokker, who had challenged his arrest by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.It is alleged that the Company owned by Chokker and his family, Mahira Infratech Pvt Ltd had collected Rs 363 crore from homebuyers for the construction of 1,500 flats to be delivered in 2021-2022. The company accounts, funds were allegedly...

Madras High Court Summons ED Assistant Director In Contempt Plea For Continuing PMLA Probe Despite HC Stay Order

The Madras High Court, on Wednesday, issued a statutory notice to the Assistant Director of Enforcement, Vikas Kumar, in a contempt petition filed by film producer Akash Baskaran for continuing the probe in an alleged money laundering case despite a stay issued by the High Court. The bench of Justice MS Ramesh and Justice V Lakshminarayanan issued notice asking the Assistant Director to appear before it on September 17. The bench expressed its displeasure after noting that the...

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...