Judicial Scrutiny Crucial in PMLA Framework, Says Delhi High Court
The Delhi High Court emphasized the importance of striking a balance between enforcement powers and individual rights under the Prevention of Money Laundering Act. Judicial oversight and procedural safeguards are crucial to prevent arbitrary enforcement of the law, as highlighted in a case involving Rajesh Kumar Aggarwal.
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The Delhi High Court has highlighted the critical balance between empowering enforcement agencies and safeguarding individual rights in the Prevention of Money Laundering Act (PMLA). The court's observation came in its decision on a case involving the alleged money laundering activities linked to Rajesh Kumar Aggarwal.
A bench comprising Justices Subramonium Prasad and Harish Vadiyanathan Shankar on September 12 articulated that an authorized officer must issue a formal order before the Enforcement Directorate (ED) seeks to retain seized properties for up to 180 days. This step is crucial for the adjudicating authority to lawfully determine property links to money laundering.
The court underscored that the PMLA is structured with procedural safeguards and judicial oversight to ensure state actions uphold constitutional values, preventing arbitrary power use. This framework relies on strict procedural adherence, the bench stated, emphasizing the need for these measures in the context of the case involving accused conspirators Surendra Kumar Jain and Virendra Jain.
(With inputs from agencies.)
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