• UGI USER
  • Feb 28, 2024
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  • 1 Comments

T.N. GOVT. ASKS SC IF ED HAS POWER TO PROBE ‘ANY OFFENCE’ IN THE COUNTRY

Why in the news?

Tamil Nadu questions ED’s authority to probe “illegal” sand mining, urging the Supreme Court to declare the agency’s power to investigate “any offence in the country.”

source:HI

About Jurisdiction Dispute:

  • Tamil Nadu challenges ED’s authority, claiming it oversteps by summoning Collectors.
  • ED accuses the state of obstructing investigation and violating federalism, seeking a Madras High Court stay.
  • Advocates argue ED lacks PMLA (the Prevention of Money
  • Laundering Act) jurisdiction for sand mining cases.
What is the Prevention of Money Laundering Act (PMLA), 2002?

●    Responds to India’s global commitment (Vienna Convention) against money laundering.

●    Objective: Criminal law to prevent money laundering and confiscate related properties.

●    Amendment (2012):

●    Introduces ‘reporting entity,’ including banks and financial institutions.

●    Removes the Rs 5 lakh fine limit.