ED Revises Strategy: PMLA Now Crucial in Money Laundering Cases

The Enforcement Directorate, responding to recent legal rulings, now requires investigators to apply the PMLA in conjunction with 'criminal conspiracy' when registering money laundering cases. This move aims for stronger cases that can withstand court scrutiny, exemplified in cases like those against Karnataka's deputy chief minister.

The Enforcement Directorate is urging its officials to enhance their strategy in money laundering cases. Rather than solely relying on 'criminal conspiracy' charges, they are now advised to apply sections of the Prevention of Money Laundering Act (PMLA) to ensure cases hold up in court, according to official sources.

This adjustment follows several court rulings, including from the Supreme Court, which clarified that Section 120-B of the Indian Penal Code isn't sufficient on its own for registering a criminal case under the PMLA. The PMLA requires a 'scheduled offence' to accompany any conspiracy charge, emphasizing the necessity for a more comprehensive legal approach.

Cases such as those involving Karnataka Deputy CM D.K. Shivakumar and others illustrate the repercussions of past strategies. Moving forward, the ED plans to ensure a robust legal foundation, utilizing PMLA provisions like Section 66(2) to share investigative findings, which help predicate agencies to file new FIRs, thus strengthening their cases.

(With inputs from agencies.)