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Introduction The Delhi High Court has delivered a significant ruling reinforcing the constitutional right to property and the statutory safeguards built into the Prevention of Money Laundering Act, 2002 (PMLA). The court held that the Enforcement Directorate (ED) cannot freeze or attach property based merely on suspicion; instead, it must show valid and recorded “reasons to believe” supported by material evidence. The judgment provides important clarity on the limits of ED’s powers and the legal standards required for deprivation of property. Statutory Framework Under PMLA Section 17(1): Search and Seizure – Requirement of “Reasons to Believe” Section 17(1) of the PMLA empowers ED officers to enter and search premises and seize records or property. However, this power is conditional. The officer must possess “reasons to believe” that: A person has committed an offence under the Act, or The person is in possession of proceeds of crime. These reasons must be recorded in wr...

In a significant ruling that strengthens constitutional protections for the accused, the Supreme Court of India has reiterated that failure to furnish written grounds of arrest to an accused person renders both the arrest and subsequent remand illegal . The judgment also confirmed the bail of Shivani Agarwal , who was arrested in connection with the high-profile Pune Porsche crash case . Case Background: Pune Porsche Crash and Allegations The case stems from the May 19, 2024 , Pune incident where a minor , while driving a Porsche allegedly owned by his father, ran over and killed two IT professionals — Aneesh Awadhiya and Ashwini Koshta . The incident triggered nationwide outrage over reckless driving and alleged procedural lapses during investigation. The minor’s mother, Shivani Agarwal , was arrested for allegedly tampering with her son’s blood samples to shield him from legal consequences. She had been in judicial custody for over ten months before the Supreme Court granted a...

Fugitive diamantaire Nirav Modi , accused in the ₹14,000 crore Punjab National Bank (PNB) scam , has hinted at “sensational developments” in his ongoing extradition proceedings in the United Kingdom. The statement was made before Justice Simon Tinkler at the Royal Courts of Justice, London , where Nirav appeared in an unrelated debt recovery case filed by the Bank of India . Nirav, currently lodged in a London prison since 2019, told the court that he remains “extremely hopeful” of either being discharged or granted bail when the extradition case reopens next month. His remarks came as he continues to represent himself in multiple ongoing cases in the UK courts. Background: From India’s Most Wanted to UK’s High-Security Prison Nirav Modi is wanted in India for fraud and money laundering related to fake Letters of Undertaking (LoUs) issued by the PNB’s Brady House branch, which enabled him to siphon off nearly $2 billion . He was arrested in March 2019 in London and has been ...

The Enforcement Directorate (ED) has approached the Supreme Court of India , challenging the Bombay High Court’s order that declared the arrest of former Vasai Virar City Municipal Corporation (VVCMC) chief Anilkumar Pawar as illegal and ordered his immediate release. The ED, through a Special Leave Petition (SLP) , has also sought a stay on the High Court’s order pending final adjudication. The plea is expected to be heard on Friday before the Supreme Court bench. High Court’s Findings: Arrest Declared Illegal and Arbitrary In a strongly worded order, the Bombay High Court bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad criticised the ED’s actions, terming the arrest “arbitrary, illegal and unsupported by evidence.” The court observed that the arrest violated Section 19 of the Prevention of Money Laundering Act (PMLA), 2002 , as well as Articles 14, 19, and 21 of the Constitution of India , which guarantee equality before law, freedom of mov...

Court Emphasizes Procedural Safeguards Under PMLA The Delhi High Court has ruled that the Enforcement Directorate (ED) must strictly follow the procedures laid down in the Prevention of Money Laundering Act (PMLA) when seeking to retain seized or frozen property. The judgment reinforces that procedural safeguards are crucial to protect individuals’ rights from arbitrary retention of property. A bench of Justice Subramonium Prasad and Justice Harish Vadiyanathan Shankar delivered the verdict on Friday, making it clear that ED cannot directly seek the adjudicating authority’s approval for retention without first issuing a formal order. Requirement of a Formal Order Before Retention According to the court, before the ED approaches the adjudicating authority, an authorised officer must pass a formal order explaining why retention for up to 180 days is necessary. Without this essential step, the adjudicating authority has no legal basis to determine whether the seized property is ...

Landmark Action in Sahara Money Laundering Case The Enforcement Directorate (ED), Kolkata, has taken a significant step in its ongoing investigation into the Sahara Group by provisionally attaching 707 acres of land in and around Aamby Valley City, Lonavala. The attached property is valued at approximately ₹1,460 crore and was allegedly acquired using funds diverted through fraudulent schemes under benami names. The land seizure falls under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and is a part of the ED’s broader investigation into illegal financial activities carried out by Sahara Group’s entities. Background of the Case The ED initiated the probe based on three FIRs registered under Sections 420 and 120B of the IPC in Odisha, Bihar, and Rajasthan. Over 500 FIRs have been lodged against Sahara Group entities , with 300 cases qualifying as scheduled offences under the PMLA . Allegations include misleading depositors with promises of high r...

Supreme Court Dismisses Abhishek Banerjee and Rujira Banerjee’s Appeals Against ED Summons Under PMLA In a recent ruling, the Supreme Court of India dismissed the appeals filed by Abhishek Banerjee and Rujira Banerjee challenging the summons issued to them by the Directorate of Enforcement (ED) under Section 50 of the Prevention of Money Laundering Act, 2002 (PMLA). The appellants had sought relief from the ED's summons to appear in New Delhi, arguing for a venue closer to their hometown, Kolkata, and questioned the legal grounds for their summons under the PMLA. Background of the Case The case originated with an FIR registered by the CBI regarding illegal coal mining activities in the leasehold areas of Eastern Coalfields Limited (ECL). The investigation revealed significant instances of money laundering involving illegal coal extraction and transportation, amounting to approximately Rs. 1300 crore. This led to the ED's involvement, which resulted in the issuance of summons to...

SC Reiterates Bail as the Rule, Jail as the Exception The Supreme Court of India has once again underscored the principle that bail should be the rule, and jail the exception. This reiteration came in a recent ruling where the apex court granted bail to an accused, Prem Prakash, in a money laundering case. The court emphasized the importance of not using statements given by an accused under custody as admissible evidence, especially when such statements are made under duress or coercion.  Inadmissibility of Statements Under PMLA Custody The Supreme Court bench comprising Justices B.R. Gavai and K.V. Viswanathan ruled that any statement made by an accused under Section 50 of the Prevention of Money Laundering Act (PMLA) while in custody is inadmissible. The court stressed that an accused in custody cannot be considered to be acting with a free mind, and any statement made under such circumstances could be unsafe and unjust to be used against them. This ruling came in the context of ...

Delhi HC Denies Bail to Two Accused in Delhi  Waqf Board Money Laundering Case The Delhi High Court has dismissed the bail applications of Zeeshan Haider and Daud Nasir, both accused in the Rs 36 crore property case related to the Delhi Waqf Board money laundering case. The court found sufficient evidence to deny bail under Section 45 of the Prevention of Money Laundering Act (PMLA). Key Details of the Case Justice Swarana Kanta Sharma, while dismissing the bail applications, noted that the cash transactions involved in the property deals could be proceeds of crime generated by Aam Aadmi Party (AAP) MLA Amanatullah Khan. The properties in question were reportedly purchased for approximately Rs 36 crores, with Rs 27 crores paid in cash. The court emphasized that the evidence presented, including bank statements and sale agreements, corroborated these findings. The court highlighted that the applicants were part of a criminal conspiracy to invest ill-gotten money in immovable propert...

Land for Job PMLA Case: Delhi HC Grants Interim Bail to  Amit Katyal on Medical Grounds In a significant development, the Delhi High Court granted six weeks of interim bail to businessman Amit Katyal on medical grounds on Wednesday. Katyal is a co-accused in the high-profile Land for Job money laundering case, which also involves prominent figures like Rabri Devi and other accused individuals. Overview of the Case The Land for Job case is a major money laundering investigation in which several high-profile individuals, including Rabri Devi, have been charge-sheeted. The case revolves around allegations of providing jobs in exchange for land, a scheme purportedly involving significant sums of money. Amit Katyal's Bail Plea Amit Katyal had previously been on interim bail for 84 days on medical grounds. His recent plea for interim bail was similarly based on his medical condition. The vacation bench of Justice Dharmesh Sharma granted the interim bail for a period of six weeks, taking ...

Legal Proceedings Initiated Against Former Jharkhand CM Hemant Soren Cognizance Taken by PMLA Court A Special Prevention of Money Laundering Act (PMLA) court in Ranchi has taken cognizance of a prosecution complaint filed by the Directorate of Enforcement (ED) against Hemant Soren, the former Chief Minister of Jharkhand and leader of the Jharkhand Mukti Morcha (JMM). The complaint, comprising 5,500 pages, pertains to a money laundering case related to a land 'scam'. The central probe agency has also attached 8.5 acres of land in connection with the case. Detention and Extended Custody Hemant Soren, who was arrested on January 31, is currently detained at the Birsa Munda Central Jail in Hotwar, Ranchi. His judicial custody was extended till April 4 by the PMLA court on March 21. Additionally, on February 29, the Jharkhand High Court dismissed a petition filed by Soren seeking permission to attend the budget session of the state assembly. Allegations by the Enforcement Directorat...