SYLLABUS SECTION: GS II (GOVERNANCE)
WHY IN NEWS?
The Supreme Court upholds the core amendments made to the Prevention of Money Laundering Act PMLA and retains the powers of the Enforcement Directorate (ED).
- It gives the government and the Enforcement Directorate (ED) virtually unbridle powers of summons, arrest, and raids, and makes bail nearly impossible while shifting the burden of proof of innocence on to the accused rather than the prosecution.
SECTIONS WHICH WERE UNDER COURT SCRUTINY AND WHAT ALL THE COURT HAS UPHELD:
- Section 3: States the offence of money laundering | Supreme Court upholds PMLA.
- The court held that generating black money is also money laundering, even without proof of actually laundering it or converting it to white money.
2) Section 5 and 8(4):
Under this, the ED has discretionary powers to attach property of the accused.
- The bench rejected the argument and held that there are enough s0afeguards to protect the accused.
- Section 17: This section gives ED powers to enter and search suspected property without judicial permission.
- The SC rejected this argument and upheld the provision.
- Section 19: This section gives the ED powers of arrest.
- The court upheld its constitutionality.
- Section 24: Reverses the usual burden of proof in criminal law.
- In a PMLA case, the judge must assume that the accused person is guilty until he disproves it. The court found this provision valid.
- Section 45: Deals with bail conditions.
- The court held that this provision is necessary to achieve the purpose of PMLA.
- Section 50: The bench held that proceedings under Section 50 are an inquiry, not a criminal investigation. ED officers are hence not police. CrPC rules for investigation do not apply to the ED
Read more: UPSC CURRENT AFFAIRS
SOURCE: INDIAN EXPRESS