When can, Directorate of Enforcement comes into action in respect of the money laundering

Court :- Supreme Court , Citation :- Shiv Kant Tripathi vs. State of U.P. & Ors 2013 (6) ADJ 672

The Hon'ble court held that 

“5. It prima facie appears from the proviso to Section 17(1) and more importantly the proviso to Section 18(1) of the Prevention   of   Money-Laundering   Act,   2002   that   the Directorate of Enforcement comes into action in respect of the money laundering allegations only after a charge-sheet is submitted by the police/ agency investigating the question whether   any   of   the   “scheduled   offences”   has   been committed. We will assume that even if the police submits a final report, alleging that no scheduled offence has been committed, but the Magistrate does not accept the same and issues process, even then the Directorate can initiate investigation into money-laundering allegations. In that view the investigation done by the directorate under the interim orders passed herein, even before a charge-sheet by the police regarding any scheduled offence having been committed, was premature.”

Connect With Us Social Media