Law

Law

A Frankestein Monster, If the Powers of ED Remains Unfettered

Author: Advocate V Govinda Ramanan The Prevention of Money Laundering Act, 2002 was enacted to protect the financial system of the country. That from a bare perusal of Section 2(u) (Prior to the amendment of 2019) r/w Section 3 of the PMLA, 2002, inter-alia, it is quite evident that the generation of “Proceeds of crime as a result of the criminal activity, which is relatable to a scheduled offence” is an indispensable pre-requisite in order to constitute the offence of Money Laundering. VALUE OF ANY SUCH PROPERTY: THE VAJRA-ASTRA (वज्रास्त्र) An exception to “Proceeds of Crime” has been carved out within the definition under Section 2(u), which is the “Value of such property” and as such it is also the most commonly used “reason to believe” by the Enforcement Directorate (ED)...