Thursday, March 12, 2026

Money laundering and Proceeds of Crime

*Criminal Law - PMLA, 2002 - "Proceeds of crime'* - Merely because the Accused has appeared before the ED on twelve occasions this circumstance cannot be a ground to hold that his arrest was illegal and to order his release - The power of judicial review must be exercised cautiously and only in cases of manifest arbitrariness or gross non-compliance with statutory safeguards. - Section 2(1)(u) of the PMLA, 2002 defines “proceeds of crime” in expansive terms to mean any property derived or obtained, directly or indirectly, as a result of criminal activity relating to a scheduled offence. The Explanation to section 2(1)(u) of PMLA, 2002 clarifies that the proceeds of crime includes property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. The definition is wide and will encompass a situation like the present one which is there in this case. If a person takes a bribe, he acquires proceeds of crime - Petition filed by accused dismissed. - *Y. Shiva Reddy v. ED [2026] GCtR 210 (Bombay)*

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