• UGI USER
  • May 17, 2024
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SC LIMITS ED’S ARREST POWERS, EASES BAIL CONDITIONS FOR PMLA ACCUSED

Why in the news?

  • The Supreme Court ruling limits the Enforcement Directorate’s (ED) power to arrest under the PMLA, impacting bail conditions for accused individuals.
  • The judgement clarifies the procedural requirements for ED’s custody applications and future investigations.
source:Livelaw

About Enforcement Directorate (ED):

  • Role: Domestic law enforcement and economic intelligence agency.
  • Objective: Enforce economic laws and combat economic crimes in India.
  • Origin: Formed in May 1956 as an “enforcement unit” for Exchange Control Laws violations.
  • Renaming: Became the Enforcement Directorate in 1957.
  • Nodal Ministry: Department of Revenue, Ministry of Finance.
  • Headquarters: New Delhi, led by the Director of Enforcement.
  • Regional Offices: Five, located in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi, each headed by a Special Director of Enforcement.

Key Acts Enforced

  • Foreign Exchange Management Act, 1999 (FEMA)
  • Prevention of Money Laundering Act, 2002 (PMLA)
  • Fugitive Economic Offenders Act, 2018 (FEOA)
Prevention of Money Laundering Act (PMLA), 2002:

●    Aims to prevent money laundering and confiscate related property.

●    Establishes an adjudicating authority and appellate tribunal for money laundering cases.

●    The Enforcement Directorate (ED) investigates PMLA offences, while the Financial Intelligence Unit–India (FIU-IND) handles suspicious financial transactions.

●    Scheduled offences are investigated by relevant agencies like police, CBI, customs, or SEBI.

●    Actions include property seizure/freezing, imprisonment up to 7 years, and unlimited fines.

Conditions for Bail in Money Laundering Cases (Section 45 of PMLA):

(Section 45 of PMLA):

●     Prima Facie Satisfaction:Required to establish that the accused did not commit the offence.

●     No Likelihood of Further Offence:Bail granted only if there’s assurance the accused won’t commit any offence while released.

About Section 19 (Power of Arrest):

●    Section 19 (Power of Arrest): Decide on arrests based on search and seizure findings.

Associated Article:

https://universalinstitutions.com/the-pmla-a-law-that-has-lost-its-way/