Use PMLA Reasonably; Otherwise Act Will Lose Relevance : Supreme Court Tells Enforcement Directorate

The Supreme Court of India on Wednesday made strong remarks against the indiscriminate use of the Prevention of Money Laundering Act which according to the Bench will result in dilution of the Act.

A Bench comprising Chief Justice of India NV Ramana, Justice AS Bopanna and Justice Hima Kohli made the observations while hearing two matters where the petitioners have been accused under the PMLA.

Addressing Additional Solicitor General SV Raju, the Chief Justice of India NV Ramana said " You're diluting the act. Not just this case. If you start using it as a weapon against 10000 rupees case and 100 rupees case, what will happen? You can't put all people behind bars. You've to use it reasonably."

" f you start indiscriminately using ED proceedings then this is what happens. The act will lose its relevance", Justice AS Bopanna said.

"Every case if you want to use it doesn't work. This is not the way it works", the CJI added.

The Bench made the observations while hearing a special leave petition filed by CBI challenging Telangana High Court's order granting anticipatory bail to Narender Kumar Patel accused under the Prevention of Money Laundering Act.

The anticipatory bail has been granted in relation to a case registered against him for the offences punishable under Sections 120-B read with Sections 42O, 467,468 and 471 of the Indian Penal Code and Section 13(2) read with 13(1Xd) of the P.C. Act, 1988

The Enforcement Directorate had arrested the Patel, Director of M/s Jay Ambe Gowri Chem Limited in January 2021 under PMLA in relation with a bank fraud case.

The second matter being heard by the court was a special leave petition filed by Usha Martin Ltd. challenging Jharkhand High Court refusing to grant them relief in relation to summons issued to them in the criminal proceedings initiated under the PMLA. The Bench today issued notice and granted the petitioner protection from coercive action until further orders.

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