The Prevention of Money Laundering Act remains India’s most stringent economic-offence law. “Proceeds of crime” under Section 2(1)(u) includes any property derived or obtained, directly or indirectly, from a scheduled offence.
Key 2025 Development
In Sarla Gupta v. Directorate of Enforcement (Supreme Court, May 2025), the Court held that an accused is entitled to all documents collected during investigation — not merely those relied upon by the ED — both at the charge-framing stage and while seeking bail under Section 45. This ruling significantly strengthens defence rights and procedural fairness.
Defence Strategies That Have Proved Effective
- Challenge the predicate offence
- Demonstrate absence of “proceeds of crime”
- Argue lack of knowledge or intent (useful for independent directors)
- Seek bail on grounds of prolonged incarceration and delay in trial
Delhi-NCR Perspective
PMLA Special Courts and the Delhi High Court have increasingly balanced the twin conditions of Section 45 with constitutional safeguards.
It is advisable for any person or entity facing PMLA proceedings to consult an experienced lawyer specializing in white-collar crimes and economic offences without delay.