PMLA & CrPC Jurisdictional Challenges and Enforcement Dynamics at LawWiser Learning Session

In this edition of 'The Legal Soapbox,' we bring you highlights from our latest LawWiser Learning session.

Event Highlights: Unpacking the Session

Our recent LawWiser Learning session, titled "Examining Grey Areas: PMLA & CrPC Jurisdictional Overlap and Enforcement Strategies", was filled with enlightening conversations. This session provided a platform to delve into the intricate investigation processes under the Prevention of Money Laundering Act (PMLA) and the Code of Criminal Procedure (CrPC). The discussion highlighted contentious issues such as overlapping jurisdictions, broad enforcement powers, procedural discrepancies, and coordination challenges.

Our esteemed experts for the session were:

• Karnal Singh: Former ED Chief & Managing Partner, Circle of Counsels
• Vikram Singh: Senior Partner & Head of Litigations, Circle of Counsels

The session underscored the need for legislative clarity, enhanced inter-agency cooperation, and robust procedural safeguards to balance effective law enforcement with the protection of individual rights.

The session saw participation from some of the top general counsels, and the exchange of information and ideas was fantastic. Our guest in-house counsels shared very interesting insights on the subject, sparking numerous conversations inside the room.

We thank everyone for their support in making the session a success and look forward to hosting you again!

Key Discussion Points from the session

Overlap and Conflict between PMLA and CrPC Provisions

Jurisdictional Ambiguity:

Cases often fall under the purview of both PMLA and CrPC, leading to confusion over which agency should take the lead. This ambiguity can result in jurisdictional disputes and legal challenges.

Concurrent Investigations:

When agencies conduct parallel investigations, it can lead to conflicting findings and a lack of cohesive prosecution strategy, undermining the effectiveness of legal proceedings.

Broad Powers of Enforcement Directorate under PMLA

Arrest and Detention:

The ED’s authority to arrest individuals without a warrant and detain them for extended periods without formal charges is criticized for potential abuse and lack of judicial checks, contrasting with the procedural safeguards in CrPC.

Attachment of Property:

The ED can attach properties on suspicion alone, without adequate proof or prior notice, raising concerns about property rights and fair hearing principles.

Burden of Proof

Reverse Burden of Proof in PMLA:

Under PMLA, the accused must prove that their property is not involved in money laundering, a stark departure from the CrPC standard, which requires the prosecution to prove guilt beyond a reasonable doubt. This shift raises questions about fairness and due process.

Procedural Safeguards and Fair Trial Rights

Admissibility of Evidence:

PMLA allows the use of certain types of evidence that may not be admissible under CrPC, such as confessions made to ED officers. This discrepancy can lead to challenges on the grounds of violating the accused’s right to a fair trial.

Bail, Arrest, and Detention

Right to Bail:

PMLA’s stringent conditions for granting bail, including the requirement to prove that the accused is not guilty prima facie, significantly restrict the right to bail compared to the more lenient CrPC provisions.

We hope you found this edition of The Legal Soapbox informative and engaging. Stay tuned for our next edition where we will continue to explore pressing legal issues and share insights from leading experts in the field.

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