Headline
Illegal collection of funds to do future crimes is not money laundering ruled by Delhi High Court.
Summary
The Delhi High Court stated that collecting funds illegally and unlawfully for doing criminal activities in future does not amount to money laundering under the Prevention of Money Laundering Act (PMLA). It stresses that ‘proceeds of crime’ must emerge directly from a scheduled offence.
Key Facts
- Case Name: Parvez Ahmed v. ED & Others.
- Judge Name: Justice Jasmeet Singh.
- Granted bail to Parvez Ahmed, Abdul Muqeet, and Mohd Ilyas in a money laundering case involving Popular Front of India (PFI).
- The Delhi High Court held that funds collected unlawfully are not ‘proceeds of crime’ unless achieved from a scheduled offence.
Legal Insights
The Delhi High Court condemned the Enforcement Directorate’s (ED) case, ruling that linking collection of funds to future crimes like Delhi Riots is hazardous and outside the scope of PMLA. It emphasised that Article 21 of the Indian Constitution prevails over strict provisions of bail in prolonged trials.
Impact
The ruling limits the misuse of PMLA by shedding light on its scope, making sure that accused individuals are not detained irrelevantly without substantive evidence of a scheduled offence.
Why It Matters
The judgment safeguards constitutional rights, stressing on principles of fair trial and guarding against misuse of strict laws like PMLA.
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