PMLA Case Laws | Supreme Court Judgments on PMLA 2002
PMLA
3: Case Law Compendium on PMLA (Prevention of Money Laundering Act, 2002)
Blog
by:
Jayprakash
B. Somani,
Advocate,
Supreme Court of India & IP,
Cell:
PA 9322188701
www.jayprakashsomani.com
www.supremecourtlawfirm.com
I.
Supreme Court Judgments
1. Vijay Madanlal Choudhary v. Union of India
Citation: 2022 SCC OnLine SC 929
Ratio Decidendi:
?
Upheld constitutional validity of key
provisions of PMLA
?
Money laundering is a standalone and
continuing offence
?
Enforcement Directorate (ED) powers under:
?
Sections 5, 17, 19, 50 are valid
?
ECIR is not equivalent to FIR; supply not
mandatory
?
Reverse burden of proof under Section 24 upheld
?? Landmark judgment strengthening India’s anti–black
money framework
2. Nikesh Tarachand Shah v. Union of India
Citation: (2018) 11 SCC 1
Ratio:
?
Struck down Section 45 (twin bail conditions)
as unconstitutional
?
Violative of Articles 14 and 21
?? Later overridden by legislative amendment and upheld
in Vijay Madanlal
3. P. Chidambaram v. Directorate of Enforcement
Citation: (2020) 13 SCC 791
Ratio:
?
Economic offences are grave and serious
?
Bail cannot be granted casually in PMLA cases
?
Consideration of:
?
Gravity
?
Impact on economy
4. Rohit Tandon v. Directorate of Enforcement
Citation: (2018) 11 SCC 46
Ratio:
?
Proceeds of crime include tainted money even
after conversion
?
Offence continues so long as money is projected
as legitimate
5. Gautam Kundu v. Directorate of Enforcement
Citation: (2015) 16 SCC 1
Ratio:
?
Strict bail conditions justified due to seriousness
of offence
?
PMLA offences affect entire financial system
6. Union of India v. Hassan Ali Khan
Citation: (2011) 10 SCC 235
Ratio:
?
Black money offences have international
ramifications
?
Courts must adopt strict approach
7. Radha Mohan Lakhotia v. Directorate of Enforcement
Citation: (2008) 5 SCC 758
Ratio:
?
Money laundering offence may exist independently
of conviction in predicate offence
8. State of Bihar v. Amit Kumar
Citation: (2017) 13 SCC 751
Ratio:
?
Economic offences require different approach
from ordinary crimes
?
Bail should be cautiously granted
II.
High Court Judgments
9. J. Sekar v. Directorate of Enforcement
Citation: 2018 SCC OnLine Del 6523
Ratio:
?
Attachment must be based on credible material
?
Safeguards against arbitrary exercise of power
10. Mahanivesh Oils & Foods Pvt. Ltd. v. Directorate of Enforcement
Citation: 2016 SCC OnLine Del 475
Ratio:
?
“Proceeds of crime” must have direct nexus
with scheduled offence
11. Abdulla Ali Balsharaf v. Directorate of Enforcement
Ratio:
?
Property acquired prior to offence cannot be
attached unless linked to crime
12. Aslam Merchant v. Competent Authority
Ratio:
?
Burden on authorities to establish link
between property and crime
13. Upendra Rai v. Directorate of Enforcement
Ratio:
?
Bail depends on:
?
Cooperation with investigation
?
Evidence on record
14. Vikas WSP Ltd. v. Directorate of Enforcement
Ratio:
?
Attachment cannot be mechanical; requires application
of mind
15. B. Rama Raju v. Union of India
Citation: 2011 SCC OnLine AP 152
Ratio:
?
Validity of PMLA upheld
?
Law aimed at combating serious economic
offences
16. Seema Garg v. Deputy Director Directorate of Enforcement
Ratio:
?
Bona fide purchasers must be protected
?
Innocent third parties cannot be penalized
17. Kavitha G. Pillai v. ED
Ratio:
?
Procedural fairness is essential in ED actions
18. Moin Akhtar Qureshi v. Union of India
Ratio:
?
ECIR not required to be disclosed at initial
stage
19. Binod Kumar v. State of Jharkhand
Ratio:
?
Arrest must comply with statutory safeguards
20. Gagan Deep Singh v. Union of India
Ratio:
?
Bail possible where evidence is weak
III.
Key Legal Principles Emerging from Case Law
1. Nature of Offence
?
Money laundering is:
?
Continuing offence
?
Standalone offence
2. Strict Bail Regime
?
Twin conditions under Section 45
?
Bail is exception, not rule
3. Wide Powers of ED
?
Search, seizure, arrest upheld
?
Subject to judicial scrutiny
4. “Proceeds of Crime”
?
Includes:
?
Direct gains
?
Indirect gains
?
Converted assets
5. Balance Between Rights & Enforcement
?
Courts ensure:
?
Due process
?
Protection of innocent parties
IV.
Conclusion
The jurisprudence under PMLA reflects a strong
judicial commitment to combat black money, while maintaining constitutional
safeguards.
The Supreme Court and High Courts have:
?
Strengthened enforcement powers
?
Clarified legal standards
?
Ensured procedural fairness
?? Result: A robust legal framework to tackle
illicit wealth in India.
