28th July 2022 (8 Topics)
1
Jul
2
Jul
4
Jul
5
Jul
6
Jul
7
Jul
8
Jul
9
Jul
11
Jul
12
Jul
13
Jul
14
Jul
15
Jul
16
Jul
18
Jul
19
Jul
20
Jul
21
Jul
22
Jul
23
Jul
25
Jul
26
Jul
27
Jul
28
Jul
29
Jul
30
Jul
SC overrides own 2017 ruling to justify ‘drastic’ PMLA provision for bail
Context
Supreme Court recently upheld the Prevention of Money Laundering Act, including its stringent bail conditions that impose a reverse burden of proof on the accused.
About
Earlier Judgement:
- In Nikesh Tarachand Shah vs Union of India (2017), the two-judge bench of Justices Rohinton Nariman and Sanjay Kishan Kaul, had declared the ‘twin test’ of bail under PMLA as unconstitutional since it was manifestly arbitrary.
Key Highlights of the recent Ruling:
- SC in recent ruling, states that “declaration by the Parliament itself is testimony of compelling necessity to have stringent regime (enactment) for prevention and control of the menace of money-laundering”.
- It also expounded the theory of “soft state” which the Court said is used to “describe a nation which is not capable of preventing the offence of money laundering”.
- The Court relied on Article 39 of the Constitution, part of the Directive Principles of State Policy that mandates the State to prevent concentration of wealth, to uphold the stringent bail conditions under PMLA.
- On Twin Bail
- On the issue of twin bail conditions under the PMLA, the court ruled that the stringent conditions for bail under the Act are legal and not arbitrary.
- Enforcement Directorate, Serious Fraud Investigation Office (SFIO), Directorate of Revenue Intelligence (DRI) officials, and not ‘police’, statements recorded during an inquiry are valid evidence.
- Quantum of penalty
- Money-laundering is one of the heinous crimes, which not only affects the social and economic fabric of the nation, but also tends to promote other heinous offences, such as terrorism, offences related to NDPS Act, etc.
- It is a proven fact that international criminal network that support home grown extremist groups relies on transfer of unaccounted money across nation, thus, by any stretch of imagination, it cannot be said that there is no compelling State interest in providing stringent conditions of bail for the offence of money-laundering.
|
About Prevention of Money Laundering Act 2002 (PMLA):
|
|
THE VIENNA CONVENTION on Money Laundering:
|
Courses
Study
Notes
Home
Resources
More
