Proceeds of crime were diverted from a sanctioned loan amount of ...

Loan fund misappropriation leads to money laundering arrest, upheld due to valid grounds provided under PMLA.

Case Laws Money Laundering

October 19, 2024

Proceeds of crime were diverted from a sanctioned loan amount of Rs. 1530.99 crores for an unauthorized purpose, constituting a predicate offence for money laundering. The Enforcement Directorate (ED) arrested the accused under the Prevention of Money Laundering Act (PMLA), providing reasons to believe as mandated by Section 19. The High Court upheld the arrest, ruling that the ED complied with statutory requirements by apprising the accused of reasons and grounds for arrest at the time of arrest. Non-recovery of substantial proceeds of crime necessitated the arrest. The arrest grounds were self-sufficient and valid, conforming to Section 19 of PMLA. An illegal arrest breaching Section 19 requirements would invalidate the arrest and prevent re-arrest on the same grounds, infringing constitutional rights.

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Proceeds of crime were diverted from a sanctioned loan amount of ...

Loan fund misappropriation leads to money laundering arrest, upheld due to valid grounds provided under PMLA.

Case Laws Money Laundering

October 19, 2024

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