Supreme Court to Decide the Extent of ED's Powers in Anti-Money Laundering Law

The Supreme Court will examine if the Enforcement Directorate can attach properties without a prior FIR. The ED challenges a Madras High Court ruling against its actions in the illegal sand mining case. A decision will clarify the extent of jurisdiction the ED holds under the Prevention of Money Laundering Act.

The Supreme Court will consider whether the Enforcement Directorate (ED) can attach properties under the anti-money laundering law without first filing an FIR. This decision follows a challenge by the ED against a Madras High Court ruling that limited its actions in a case involving alleged illegal sand mining.

The bench, led by Chief Justice Sanjiv Khanna, issued notices after submissions by Additional Solicitor General S V Raju. The aim is to provide clarity on Section 5 of the Prevention of Money Laundering Act, which both mandates an FIR for property attachment and permits attachment without one if an investigation is underway.

The outcome of this case could redefine the investigative reach of the ED and affect the rights of individuals accused of money laundering. The ED's appeal is set for hearing in February 2025, as it contests the high court's claims that sand mining does not constitute a scheduled offence under current law.

(With inputs from agencies.)