Recently, Supreme Court has upheld various provisions of Prevention of Money Laundering Act (PMLA). In light of this highlight the concerns associated with PMLA.

Answer: PMLA was introduced in 2002 to combat money laundering. The Supreme Court (SC) of India in Vijay Madanlal Choudhary case has upheld constitutionality of PMLA.

Act’s Section

SC’s Decision

Section3: Definition of money laundering

  • Projecting proceeds as untainted property is not necessary. Mere possession and concealment will suffice as crime.
  • Generating black money even without proof of actually laundering it or converting it to white money is money laundering.

Section 5, 8(4), 17 and 19: Enforcement Directorate (ED) powers

  • Rejected notion that ED has been given blanket powers of arrest, search of person and property and seizure.

Section 24: Burden of ....

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General Studies Mains Questions And Answers