SC ruling paves way for ED to attach assets, conduct raids prior to predicate offence: Ex ED chief
The Hindu
Former ED Director Karnal Singh said while the SC verdict gives a shot in the arm to the agency, it also brings upon more accountability upon the investigators to conduct due diligence before going ahead in a case
The recent Supreme Court verdict clarifying various provisions of the PMLA "strengthens" the hands of the Enforcement Directorate (ED) as the agency can now attach assets and carry out raids even prior to the registration of the predicate offence, former ED Director Karnal Singh has said.
The apex court on July 27 issued its directives in a 545-page order after hearing a clutch of pleas concerning validity and interpretation of a number of provisions of the Prevention of Money Laundering Act (PMLA) and the procedure followed by the ED while investigating cases under this stringent criminal law.
Mr. Singh, a 1984-batch Indian Police Service (IPS) officer, retired as the ED chief in 2018 after heading the federal agency for over three years.
Explaining the order, the former ED chief said while the SC verdict gives a shot in the arm to the agency, in a few instances, it also brings upon more accountability upon the investigators to conduct due diligence before going ahead in a case.
"The SC order, at some places, strengthens the hands (of the ED) like it says that the attachment of the property can be done even without the predicate (primary) offence being there if the ED officer is satisfied that there exists a predicate offence, there are proceeds of crime which could deplete or go away if not attached immediately and frustrate proceedings under the PMLA."
"However, at the time of attachment, the ED officer should also write a letter to the predicate agency giving all the evidences to them so that predicate agency (like CBI, police etc) can take cognisance of it, register a case and give the copy of FIR or if it is agency where FIR is not registered then inform the ED about the concept that they are going to investigate that...," Mr. Singh told PTI in an interview.
Secondly, he said, the court order clarifies that searches can be undertaken by the ED without the predicate offence being booked. "The officers, however, will have to be careful what happens if the other agencies do not register a case? What happens if the evidence is not good which can lead to predicate offence not being successful? If you see the judgement, it says that if the predicate offence fails then there is no PMLA offence and therefore ultimately in the final decision the legs of the two agencies (ED and the predicate offence filing agency) have been tied."