• PMLA

Whether a person can be arrested under pmla act by the ed when there is no chargesheet or challan by the  police against me under which the primary fir was done which is the Base for the Ecir of the ed under pmla act
Asked 1 month ago in Criminal Law from Delhi, Delhi
Religion: Hindu
Since PMLA is a special act and the provisions of
this Act have been given overriding effect, therefore, they will
prevail in case if there is any inconsistency with the general Act.
In terms of Section 65 of PMLA, the provisions of PMLA relating
to arrest, search and seizure, attachment, confiscation,
investigation, prosecution and all other proceedings under
PMLA have the overriding effect and the provisions of the
Cr.P.C. not inconsistent with the provisions of PMLA in this
regard, only are made applicable

2) So far as the issue of investigation is concerned, the
PMLA does not contain any provision parallel to Section 154 of
the Cr.P.C. for registration of FIR, Section 157 of the Cr.P.C.
relating to sending the report to the Magistrate, Section 167
Cr.P.C. relating to the procedure when investigation cannot be
completed within 24 hours and Section 172 of the Cr.P.C.
relating to maintaining the case diary. If the offence is
registered against a person under the PMLA then the
investigation is to be carried out by following some reasonable
procedure. Such a course is also necessary keeping in view
the issue of personal liberty and fair and proper investigation.

3) Keeping in view the provisions of Section 65 of PMLA and also
the fact that there is no procedure prescribed in PMLA for
investigation of the offence,the
procedure which has been prescribed under the Cr.P.C. is
required to be followed while investigating the offence under
PMLA.

4) the 
"Grounds   of   Arrest"   on   the   basis   of   material   in 
possession   for   reason   to   believe   the   applicant   as 
guilty of offence under PML Act,  is  mandatory under the 
provisions   of   sub­section   (1)   of   Section   19   of   PML 
Act.   The existence of such grounds for arriving at 
such   reasonable   belief   is   pre­requisite   for   arrest 
under   PML   Act   and   are   required   to   be   recorded   in 
writing.     Hence,   non­supply   of   such   "Grounds   of 
Arrest",   at   the   time   of   arrest   or   immediately 
thereafter   is   fatal   and entitled to be released on bail 

4) 
Ajay Sethi
Advocate, Mumbai
23123 Answers
1214 Consultations
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If it appears to the IO that the offence has been committed then he is not bound to wait till the filing of the chargesheet to arrest the accused. The act goes further to state that the person who has been accused of having committed the offence of money laundering has to prove that alleged proceeds of crime are in fact lawful property. 
Ashish Davessar
Advocate, Jaipur
18063 Answers
446 Consultations
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Hi 
1) Unfortunately PMLA being a special statuate , General Statuate such as Cr.P.C shall not be followed. The rule of law states that If a special statute lays down procedures, the ones laid down under the general statutes shall not be followed.

However depending on the contents of the ECIR filed against you and on the basis of your counter arguments, reliance to a certain extent can be placed on the following judgments
 
1) Rakesh Manekchand Kothari vs Union Of India & 2 on 24 July, 2015
2) Directorate of Enforcement v. Deepak Mahajan, (1994) 3 SCC 440 : AIR 1994 SC 1775 
3) D.K Basu v. State of Bengal, (1997) 1 SCC 416 : AIR 1997 SC 610 
4)Lalitha Kumari v. Government of U.P, (2014) 2 SCC 

Hope this helps
Rajgopalan Sripathi
Advocate, Hyderabad
869 Answers
43 Consultations
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The PMLA seeks to combat money laundering in India and has three main objectives:
To prevent and control money laundering
To confiscate and seize the property obtained from the laundered money; and
To deal with any other issue connected with money laundering in India.
The act prescribes that any person found guilty of money-laundering shall be punishable with rigorous imprisonment from three years to seven years and where the proceeds of crime involved relate to any offence under paragraph 2 of Part A of the Schedule (Offences under the Narcotic Drugs and Psychotropic Substance Act, 1985), the maximum punishment may extend to 10 years instead of 7 years.
T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
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Pl give relevant judgement


Trial court judgments are not reported hence,you have to look out for them yourself.
T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
5.0 on 5.0

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