01 Read
What happened
The Prevention of Money Laundering Act (PMLA) 2002 underwent significant amendments in 2019, expanding Enforcement Directorate's powers substantially. Key changes include making bail non-bailable for offences involving proceeds exceeding ₹1 crore, reversing burden of proof on accused, and allowing ED to attach assets during investigation. Supreme Court in Vijay Madanlal Choudhary (2022) upheld most amendments while emphasizing judicial safeguards. Recent rulings have balanced ED's enhanced powers with constitutional protections, particularly regarding bail conditions and presumption of innocence principles.
02 Understand
Why it matters
PMLA amendments transformed India's anti-money laundering framework by significantly enhancing ED's investigative and enforcement capabilities. The 2019 amendments made bail stringent for offences involving proceeds above ₹1 crore, requiring courts to satisfy that the accused is not guilty and unlikely to commit similar offences. This reverses the traditional presumption of innocence. ED can now provisionally attach assets during investigation without prior approval, expanding beyond the earlier requirement of ECIR filing. The amendments also broadened the definition of 'proceeds of crime' to include assets equivalent in value to laundered money. Supreme Court's Vijay Madanlal Choudhary judgment (2022) validated these provisions while emphasizing that courts must apply judicial mind in bail matters. However, it stressed that ED cannot mechanically rely on the stricter bail conditions. Subsequent rulings have attempted to balance ED's enhanced powers with fundamental rights, particularly in cases involving political figures and business leaders. The amendments reflect India's commitment to international anti-money laundering standards while raising concerns about potential misuse of investigative agencies for political purposes.
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