SC Upholds Validity Of Various Provisions Of Money Laundering Act Under Challenge

Supply of ECIR to accused is not mandatory and only disclosure of reasons during arrest is enough, said the SC while passing the order.

Supreme Court of India

Source : ANI

The Supreme Court has upheld the validity of various provisions of Prevention of Money Laundering Act (PMLA). A three-judge bench of Justices AM Khanwilkar, Dinesh Maheshwari and CT Ravi Kumar passed the order. Petitions had challenged the process of arrest, seizure and investigation carried out by the Enforcement Directorate (ED) under PMLA provisions.

"Enforcement Case Information Report (ECIR) cannot be equated with FIR as ECIR is an internal document of Enforcement Directorate. Supply of ECIR to accused is not mandatory and only disclosure of reasons during arrest is enough," said the SC while passing the order, reported news agency ANI.

Supreme Court says the Enforcement Case Information Report (ECIR) cannot be equated with FIR and ECIR is an internal document of Enforcement Directorate. Supply of ECIR to accused is not mandatory and only disclosure of reasons during arrest is enough, says SC.

— ANI (@ANI) July 27, 2022

The petitioners, over 100, 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.

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