Supreme Court Annual Digest 2022- Prevention of Money Laundering Act (PMLA), 2002

Prevention of Money Laundering Act 2002 - Money laundering is an independent offence. (Para 7) Dr. Manik Bhattacharya v. Ramesh Malik, 2022 LiveLaw (SC) 867 Prevention of Money Laundering Act 2002 - Protective order passed against one investigating agency cannot operate against another investigating agency even if there are factual similarities in allegations- Interim protection granted against coercive action by the CBI cannot operate against ED. Dr. Manik Bhattacharya v. Ramesh Malik, 2022 LiveLaw (SC) 867 Prevention of Money Laundering Act 2002 - While testing the legality of an arrest made by an agency otherwise empowered to take into custody a person against whom such agency considers subsistence of prima facie evidence of money laundering, we do not think a general protective order directed at another investigating agency could have insulated the petitioner from any coercive action in another proceeding stated by a different agency, even if there are factual similarities vis-à-vis the allegations. (Para 7) Dr. Manik Bhattacharya v. Ramesh Malik, 2022 LiveLaw (SC) 867 Prevention of Money Laundering Act, 2002 - ECIR vis-a-vis FIR - there is no need to formally register ECIR - ECIR is internal document - there is not requirement in law to furnish copy of ECIR to accused - non-recording of ECIR does not prevent the authorities from proceeding with inquiry/investigation for attachment - it is sufficient if at the time of arrest the person is informed the grounds on which the arrest is being made; sufficient compliance of A 22(1) of the Constitution; the Court before whom the accused is produced can call ED officers for relevant records. [Para 176-179] Vijay Madanlal Choudhary v. Union of India, 2022 LiveLaw (SC) 633 : 2022 (10) SCALE 577 Prevention of Money Laundering Act, 2002 - ED Manual - is internal document and in the nature of administrative orders - common public may not be entitled to access such confidential administrative instructions for internal guidance of ED - there is no investigation but inquiry akin to civil action of attachment - since the inquiry ends in identifying the offender and then they are prosecuted, Authorities can considered outlining some crucial procedures and explore the feasibility of placing document on official website of ED. [Para 180-181] Vijay Madanlal Choudhary v. Union of India, 2022 LiveLaw (SC) 633 : 2022 (10) SCALE 577 Prevention of Money Laundering Act, 2002 - Schedule of 2002 Act - classification or grouping of offences for treating the same as relevant for constituting offence of money- laundering is a matter of legislative policy. [Para 175-175A] Vijay Madanlal Choudhary v. Union of India, 2022 LiveLaw (SC) 633 : 2022 (10) SCALE 577 Prevention of Money Laundering Act, 2002 - Supreme Court upholds constitutionality of powers of Enforcement Directorate for arrest, search and seizure, attachment - Court upholds the constitutionality of reverse burden of proof (Section 24) and twin conditions of bail (Section 45). Vijay Madanlal Choudhary v. Union of India, 2022 LiveLaw (SC) 633 : 2022 (10) SCALE 577 Section 3 - Offence of money-laundering Prevention of Money Laundering Act, 2002; Section 3 - Appeal against High Court quashed PMLA proceedings against 'Bribe Giver' - Allowed - So long as the amount is in the hands of a bribe giver, and till it does not get impressed with the requisite intent and is actually handed over as a bribe, it would definitely be untainted money. If the money is handed over without such intent, it would be a mere entrustment. If it is thereafter appropriated by the public servant, the offence would be of misappropriation or species thereof but certainly not of bribe. The crucial part therefore is the requisite intent to hand over the amount as bribe and normally such intent must necessarily be antecedent or prior to the moment the amount is handed over. Thus, the requisite intent would always be at the core before the amount is handed over. Such intent having been entertained well before the amount is actually handed over, the person concerned would certainly be involved in the process or activity connected with "proceeds of crime" including inter alia, the aspects of possession or acquisition thereof. By handing over money with the intent of giving bribe, such person will be assisting or will knowingly be a party to an activity connected with the proceeds of crime. Without such active participation on part of the person concerned, the money would not assume the character of being proceeds of crime. The relevant expressions from Section 3 of the PML Act are thus wide enough to cover the role played by such person. Directorate of Enforcement v. Padmanabhan Kishore, 2022 LiveLaw (SC) 896 Prevention of Money Laundering Act, 2002; Section 3 - offence of “money laundering” - widely worded; meant not only to investigate offence but also regulate it -...

Supreme Court Annual Digest 2022- Prevention of Money Laundering Act (PMLA), 2002

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