Supreme Court To Deliver Verdict On Pleas Challenging Provisions Of Money Laundering Act Today

PMLA Judgment: Petitions have challenged the process of arrest, seizure and investigation carried out by the Enforcement Directorate under PMLA provisions.

A view of the Supreme Court of India building

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The Supreme Court will deliver its judgment on petitions challenging the interpretation of certain provisions of the Prevention of Money Laundering Act (PMLA) today, ANI reported. Petitions have challenged the process of arrest, seizure and investigation carried out by the Enforcement Directorate (ED) under PMLA provisions.

More than 100 petitions on various aspects of the PMLA were grouped together and heard by the Supreme Court bench headed by Justice AM Khanwilkar. The petitioners had argued that the Act gave "unchecked powers to the Enforcement Directorate to arrest, seize property, and force confessions" out of the accused.

The Centre had defended the PMLA provisions in the Supreme Court, saying if a person "knowingly" becomes a party or is actually involved in any activity connected with the proceeds of crime, then such an individual is prima facie guilty of the offence of money laundering.

The Prevention of Money Laundering Act (PMLA) was enacted in 2002, but implemented from July 1, 2005. The amendments were made by Parliament on December 17, 2012, and came into force on February 15 next year.

"Money-laundering poses a serious threat not only to the financial systems of countries but also to their integrity and sovereignty. To obviate such threats international community has taken some initiatives. It has been felt that to prevent money-laundering and connected activities comprehensive legislation is urgently needed," Solicitor General Tushar Mehta told the SC bench.

Meanwhile, government data showed that cases recorded under Prevention of Money Laundering Act (PMLA) had seen a substantial jump in the last few years.

During the last ten years, the Directorate of Enforcement recorded around 3,985 cases under the PMLA, IANS reported. The data disclosed that while the total number of cases under PMLA in the year 2020-21 was 981, it increased to 1,180 in the year 2021-22. Till March 31, 2022, the Directorate of Enforcement recorded around 5,422 cases under PMLA, the Lok Sabha was informed.

(With inputs from agencies)