⚖️ PMLA 2002 3rd Edition · 520 Pages ED Verified

PMLA
Practitioner's Guide

India's most authoritative reference on the Prevention of Money Laundering Act — authored by former Assistant Directors of the Enforcement Directorate with direct experience in PMLA investigations, attachment orders, and prosecution.

0Sections in PMLA
0Schedule Parts (A/B/C)
0Predicate Offences
0Year Enacted
🔍 Investigation Powers

Search, Survey & Seizure

ED officers empowered under Section 16–17 to search premises, seize documents and attach proceeds of crime.

🏦 Attachment of Property

Provisional & Confirmed Attachment

Section 5 — Provisional attachment (180 days). Section 8 — Confirmed attachment after adjudication.

⚖️ Prosecution & Trial

Special Court Jurisdiction

Designated Special Courts try PMLA offences. Reverse burden of proof under Section 24. Stringent bail conditions (Section 45).

🌐 International Cooperation

Mutual Legal Assistance

Letters Rogatory, bilateral treaties, FATF compliance, foreign attachment and fugitive returns under FEOA 2018.

0Year Enacted
₹1.5L+Cr Attached (2024)
0Predicate Offences
0Major Amendments
FATFCompliant Regime

PMLA Key Provisions

Prevention of Money Laundering Act, 2002 — enforced by the Enforcement Directorate under the Ministry of Finance.

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Section 3

Offence of Money Laundering

Projecting, concealing or using proceeds of crime as untainted property. Wide definition covers direct/indirect assistance and attempts.

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Section 5

Provisional Attachment

ED Director/Deputy Director can provisionally attach property for 180 days pending adjudication. No notice required before attachment.

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Section 8

Adjudication

Adjudicating Authority hears attachment cases. Can confirm, modify or annul provisional attachment within 365 days.

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Section 19

Arrest Powers

ED JDIT/above can arrest persons believed guilty of PMLA offence. Mandatory forwarding to Special Court within 24 hours.

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Section 45

Twin Conditions for Bail

Bail only if: (1) Public Prosecutor given opportunity to oppose; (2) Court satisfied accused not guilty & won't commit further offence.

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Section 56–60

International Cooperation

Bilateral agreements, Letters Rogatory to foreign courts, attachment of property abroad, and reciprocal arrangements with foreign jurisdictions.

PMLA Scheduled Offences

Money laundering is an offence only when proceeds arise from a scheduled (predicate) offence — listed across 3 Parts.

Para 1

Indian Penal Code / BNS

Waging war, sedition, murder, kidnapping, robbery, dacoity, counterfeiting currency, forgery.

Para 2

Narcotics & Psychotropic Substances

NDPS Act, 1985 — drug trafficking offences generating proceeds of crime are primary predicate offences.

Para 3

Arms Act, 1959

Illegal manufacture, sale, transfer, import/export of arms and ammunition under Arms Act.

Para 4

Wildlife Protection Act

Poaching, illegal trade in endangered species, wildlife trafficking under Wildlife Protection Act, 1972.

Para 5

Immovable Property Fraud

Transfer of immovable property by fraudulent means, cheating in property transactions.

Para 6–8

Corruption & Economic Crimes

Prevention of Corruption Act, COFEPOSA, Customs Act smuggling offences, Companies Act violations.

Para 9

Cyber Crime

IT Act offences — hacking, identity theft, cyber fraud generating illegal proceeds.

Para 12

Smuggling & Customs

Customs Act, 1962 — offences under Sections 132, 133, 135, 135A, 136 relating to duty evasion and smuggling.

Para 17

Human Trafficking

Trafficking in persons under IPC/BNS and Immoral Traffic Prevention Act.

Part B Threshold

Value exceeds ₹1 Crore

Part B offences are scheduled only when the amount involved exceeds ₹1 Crore — designed to focus ED on significant economic crimes.

Cheating

IPC Section 420 / BNS

Large-scale cheating and criminal breach of trust where fraud value exceeds ₹1 Crore.

Criminal Breach of Trust

IPC Section 406 / BNS

Misappropriation of funds by professionals, trustees, directors — provided value crosses threshold.

Forgery

IPC Section 467 / BNS

Forgery of valuable security, bank instruments, documents of title if value of forgery exceeds ₹1 Crore.

Fraudulent Accounts

Companies Act

Fraudulent accounts, false statements in prospectus, misapplication of company funds under Companies Act 2013.

Note

Judicial Interpretation

Supreme Court in Vijay Madanlal Choudhary (2022) upheld Part B threshold as constitutional — ED jurisdiction limited to ₹1Cr+ cases.

Part C Scope

Cross-border & International

Covers offences that have a cross-border element — money moved internationally, foreign property acquired, or transnational crime.

FEMA Link

FEMA Act, 1999

FEMA violations involving cross-border fund movement can constitute predicate offence where proceeds are laundered internationally.

Extradition

Fugitive Economic Offenders

FEOA 2018 — enables attachment of ALL property (not just PoC) of persons who flee India to escape prosecution.

MLAT

Mutual Legal Assistance

India has signed MLATs with 44+ countries enabling evidence sharing, joint investigations and foreign asset recovery.

FATF

Financial Action Task Force

India is FATF member since 2010. India's mutual evaluation report (2024) highlighted strengths in ED enforcement.

Section 60

Foreign Attachments

Properties of accused located abroad can be attached via Section 60 — bilateral treaty or Letters Rogatory mechanism.

ED Investigation Step by Step

From predicate offence FIR to Special Court conviction — the PMLA enforcement lifecycle.

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1

Predicate Offence

FIR / charge sheet in scheduled offence (Customs, NDPS, IPC etc.) triggers ED jurisdiction.

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2

ECIR & Investigation

ED registers Enforcement Case Information Report. Search, survey, summons under S.50.

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3

Provisional Attachment

PMLA S.5 order attaches proceeds of crime for 180 days without notice to accused.

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4

Adjudication

Adjudicating Authority hears both sides and confirms/releases attachment (S.8).

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5

Special Court Trial

Prosecution complaint filed. Reverse burden on accused. Conviction → forfeiture of PoC.

Key PMLA Judgments & Orders

Landmark Supreme Court decisions and ED enforcement actions shaping PMLA jurisprudence.

The AskDExpert Team

Former ED Assistant Directors — bringing first-hand PMLA investigation and prosecution expertise.

TK
Tarun Kumar
Advocate | Former Asst. Director, ED & Supt. GST/Customs (DRI)
Served as Assistant Director in the Enforcement Directorate conducting PMLA investigations, attachment proceedings and prosecutions. Deep expertise in PMLA, FEMA, FEOA and Customs enforcement — now advises clients facing ED proceedings.
PMLA InvestigationED ProceedingsFEMAFEOAAttachment Defence
SY
Sunil S. Yadav
Advocate | Former Asst. Director, ED & Supt. GST/Customs (DGGI)
Extensive ED experience in PMLA, FEMA and FEOA investigations at field level. Previously served in DGGI handling GST fraud and economic offences. Now advises on PMLA defence, AML compliance and FIU reporting obligations.
PMLA DefenceAML ComplianceKYC / FIUFEOABail Applications
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