HC ruled petitioner's arrest for money laundering under PMLA ...

Money Laundering Arrest Quashed: ED Failed to Meet "Reason to Believe" Standard Under Section 19(1) PMLA

February 8, 2025

Case Laws     Money Laundering     HC

HC ruled petitioner's arrest for money laundering under PMLA illegal. Court found ED failed to establish "reason to believe" standard required under Section 19(1) PMLA. No tangible evidence demonstrated petitioner's involvement in illegal sand mining operations or financial transactions with proceeds of crime. ED's investigation lacked proof of petitioner's share deposits in mining bids or direct participation in money laundering activities. While petitioner acknowledged financial dealings with AMPL, prosecution failed to establish connection to proceeds of crime or involvement in concealment, possession, or projection of untainted property. Court emphasized arrest power under PMLA requires substantive evidence of guilt, not merely investigative purposes. Petition granted, arrest declared violation of Section 19(1) PMLA safeguards.

View Source