LawWiser Learning Session – Examining Grey Areas: PMLA & CrPC Jurisdictional Overlap and Enforcement Strategies

Examining Grey Areas: PMLA & CrPC Jurisdictional Overlap and Enforcement Strategies

On July 9, 2024, LawWiser hosted a Learning Session at The Westin Gurgaon. The knowledge session was supported by Circle of Counsels around Examining Grey Areas: PMLA & CrPC Jurisdictional Overlap and Enforcement Strategies. The session was delivered by Karnal Singh, Managing Partner, Circle of Counsels and Vikram Singh, Senior Partner & Head Of Litigations, Circle of Counsels.

The session was attended by some top general counsels who shared their insights and views around the subject. The session throughout sparked a lot of conversations inside the room making the session more conversational.

Key points discussed in the session were:

• Overlap and Conflict between PMLA and CrPC Provisions
  Jurisdictional Ambiguity:
  Cases often fall under the purview of both PMLA and CrPC, leading to confusion over which agency should take the lead. This ambiguity can result in jurisdictional disputes and legal challenges.
• Concurrent Investigations:
  When agencies conduct parallel investigations, it can lead to conflicting findings and a lack of cohesive prosecution strategy, undermining the effectiveness of legal proceedings.
• Broad Powers of Enforcement Directorate under PMLA.
  Arrest and Detention:
  The ED’s authority to arrest individuals without a warrant and detain them for extended periods without formal charges is criticized for potential abuse and lack of judicial checks, contrasting with the procedural safeguards in CrPC.
• Attachment of Property:
  The ED can attach properties on suspicion alone, without adequate proof or prior notice, raising concerns about property rights and fair hearing principles.
• Burden of Proof:
  Reverse Burden of Proof in PMLA:

Under PMLA, the accused must prove that their property is not involved in money laundering, a stark departure from the CrPC standard, which requires the prosecution to prove guilt beyond a reasonable doubt. This shift raises questions about fairness and due process.

• Procedural Safeguards and Fair Trial Rights

Admissibility of Evidence:

PMLA allows the use of certain types of evidence that may not be admissible under CrPC, such as confessions made to ED officers. This discrepancy can lead to challenges on the grounds of violating the accused’s right to a fair trial.

• Bail, Arrest and Detention

Right to Bail:

PMLA’s stringent conditions for granting bail, including the requirement to prove that the accused is not guilty prima facie, significantly restrict the right to bail compared to the more lenient CrPC provisions.

About LawWiser Learning

LawWiser Learning sessions are intimate gatherings curated for senior in-house and legal counsels. During these sessions, a law firm partner or representative hosts and provides a brief update on the latest developments in a specific practice area. Each 45-minute knowledge session is followed by informal networking. These high-interaction events enable legal professionals to discuss and debate various aspects of the topic with peers.