What are the implications of the SC's observation on the PMLA concerning the predicate offence
Understanding the Supreme Court's directive to the ED regarding the initiation of PMLA.
- The Supreme Court's observation on the PMLA concerning the predicate offence emphasizes the need for a direct connection between the proceeds of crime and the underlying criminal activity.
- It highlights the importance of establishing a clear link between the money laundering offense and the specific criminal act that generated the illicit funds.
- The directive aims to prevent misuse of the Prevention of Money Laundering Act (PMLA) and ensure that only legitimate cases of money laundering are pursued by enforcement agencies like the Enforcement Directorate (ED).
- This ruling could lead to more careful scrutiny of cases before initiation under PMLA and a focus on obtaining sufficient evidence of the predicate offences involved.
- Overall, the SC's directive seeks to ensure the appropriate application of the PMLA and uphold the principles of justice and fairness.
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9 months ago