Indian SC order upholds powers of Enforcement Directorate

NEW DELHI: In a major verdict delivered on Wednesday, the Supreme Court has declared that the Enforcement Directorate has the powers conferred under law to investigate people, conduct searches and raids and even arrest citizens under the stringent provisions of the Prevention of Money Laundering Act (PMLA).

A number of petitioners, including Congress Lok Sabha member Karti Chidambaram, had approached the apex court challenging the powers of the ED under the PMLA.

The court declared the ED actions cannot be called arbitrary and it has the powers to attach properties of people suspected of money laundering. On the aspect of Section 3 (definition of money laundering), a bench, headed by Justice A.M. Khanwilkar and comprising Justices Dinesh Maheshwari and C.T. Ravikumar said:

“The Authority under the 2002 Act, is to prosecute a person for offence of money laundering only if it has reason to believe, which is required to be recorded in writing that the person is in possession of proceeds of crime.”