Money-Laundering, PMLA, 2002 and Law on Retaining the Property

Money-Laundering, PMLA, 2002 and Law on Retaining the Property 

In case of ED v. Mahanivesh Oils & Foods Pvt Ltd [2026] GCtR 229 (Delhi) dealing with PMLA, 2002 it was held that "continuing to possess proceeds of crime or retaining possession of proceeds of crime or using of proceeds of crime until they are fully exhausted, amounts to money laundering."

The process or activity of dealing with the proceeds of crime can be in any form – concealment, possession, acquisition or use thereof, as much as projecting or claiming the proceeds of crime to be untainted property. Even de hors any projection, or claiming, of the property constituting the proceeds of crime to be untainted, therefore, the very possession, or use, of the property would constitute the offence of money laundering.

It is clear that the scheduled offence and the offence of money laundering are distinct and different. There can be no comparison, therefore, of the punishments, which may visit the commission of these two offences. Nor can Article 20(1) of Constitution of India be said to be infracted if the punishment visiting the commission of offence of money laundering is greater than the punishment visiting the commission of scheduled offence.