The Hon’ble High Court of Delhi (Delhi HC/Court) in Directorate of Enforcement v. Akhilesh Singh & ors has reaffirmed that properties and bank accounts cannot be attached under the Prevention of Money Laundering Act, 2002 (PMLA) once the accused has been acquitted in the predicate offence.

 

In the present matter, the Directorate of Enforcement (ED) initiated proceedings under sections 3 and 4 of the PMLA against the respondents, who were subsequently discharged from money laundering charges after acquittal in a related criminal case. The Court emphasized that section 3 of the PMLA centers on the illegal gain of property through criminal activity related to a scheduled offence and that the assets of the respondents could no longer be deemed proceeds of crime in light of the acquittal. It further mandated the ED to inform the concerned authorities and banks promptly for compliance.

 

The Court referred to the appeal filed by the State of Jharkhand against the acquittal and held that the discharge in the predicate offence does not automatically bar the release of attached properties under the PMLA. While acknowledging the pendency of appeals as a legal right, the Court highlighted that until final adjudication, acquitted persons should not be subject to prolonged legal restrictions on their assets.

Authors & Contributors

Partner:

Saroj Kumar Jha

 

Principal Associate:

Vikram Gupta 

 

Associate(s):

Jahnvi Singh Yadav