13th July 2024 (10 Topics)

Copy

1 Jul

2 Jul

3 Jul

4 Jul

5 Jul

6 Jul

8 Jul

9 Jul

10 Jul

11 Jul

12 Jul

13 Jul

15 Jul

16 Jul

17 Jul

18 Jul

19 Jul

20 Jul

22 Jul

23 Jul

24 Jul

25 Jul

26 Jul

27 Jul

29 Jul

30 Jul

31 Jul

ED Powers under Supreme Court Lense

Context

The Supreme Court's recent decision to grant interim bail to Arvind Kejriwal in the Delhi excise policy case has brought attention to the legal scope of the Prevention of Money Laundering Act (PMLA) and the powers of the Enforcement Directorate (ED).

ED's Powers and Issues:

Under Section 19(1) of PMLA, ED officers have discretionary power to arrest individuals without requiring a warrant.
- Issue: The SC questioned whether this power should be subjected to more stringent judicial scrutiny, considering factors like "need and necessity" for arrest.
ED's statistics reveal a disparity between ECIRs recorded (5,906), searches conducted (531), persons arrested (513), and prosecution complaints filed (1,142).
- Issue: This raises questions about ED's policy on when to arrest individuals involved in offences under PMLA.

Other Important Judgments on PMLA

Vijay Madanlal Choudhary v. Union of India
- The Supreme Court upheld various provisions of PMLA, including those related to arrest, attachment, search, and seizure by the ED.
- The court held that these provisions have a reasonable connection with the Act's objective to prevent money laundering effectively.
Chidambaram v. Directorate of Enforcement (2019)
- The Supreme Court rejected a plea for anticipatory bail in a money laundering case and granted custody to the ED.
- The court reasoned that money laundering cases involve complex stages of fund placement and layering, requiring a systematic and thorough investigation.
- Granting pre-arrest bail would hinder this process and potentially compromise the investigation.

Fact Box:

About Enforcement Directorate (ED)

It is a multi-disciplinary organization responsible for enforcing two special laws:
- Foreign Exchange Management Act, 1999 (FEMA)
- Prevention of Money Laundering Act, 2002 (PMLA)
It steps in when a local police station registers an offence with proceeds of crime over Rs 1 crore
It has powers to investigate under PMLA Sections 48 and 49.
ED carries out search (property) and seizure (money/documents) under Section 16 and Section 17 of the PMLA.

About Prevention of Money Laundering Act (PMLA), 2002

The Act was enacted to combat money laundering (converting illegally earned money into legitimate money)
It enables government or public authority to confiscate property earned from illegally gained proceeds

Other key authorities to investigate anti-money laundering offences

Financial Intelligence Unit – India (FIU-IND)
Economic Offences Wing, Central Bureau of Investigation (CBI)
Income Tax Department
Registrar of Companies (RoC)
Regulators like the Reserve Bank of India (RBI), Securities & Exchange Board of India (SEBI), and Insurance Regulatory & Development Authority of India (IRDAI)

A wobbly walk

International Relations Bilateral relations

As Another Trump Era Looms: NATO's Ukraine Challenge and India's Diplomatic Dance

International Relations International Organization

The PDS impact on household expenditure

Economy Governance

SDG India Index 2023-24

Polity & Governance Governance

SC Highlights Need for Balance in Jim Corbett National Park Dispute

Ecology and Environment Environment Conservation

NABARD Launches Agri Fund, ‘Agri-SURE’

Economy Agriculture

Sukhoi Su-30 fighter jets

Science & Technology Defence

Sustainable Rosewood Trade

Ecology and Environment Environment Conservation

New species of Dogfish Shark (Squalus hima)

Ecology and Environment Biodiversity

GS Analyst: Daily Current Affairs

ED Powers under Supreme Court Lense

ED's Powers and Issues:

Other Important Judgments on PMLA

Fact Box:

User Login

User Register

Forgot Password

Verify Your Mobile Number