ValkyaEditorial

Tagged “money-laundering”

10 articles on money-laundering.

Supreme CourtSupreme Court of India

Nikesh Tarachand Shah v. Union of India: how the Supreme Court struck down the Section 45 PMLA twin bail conditions

On 23 November 2017, a two-judge bench of Justices R.F. Nariman and Sanjay Kishan Kaul struck down the twin conditions for bail in Section 45(1) of the Prevention of Money Laundering Act, 2002, as unconstitutional — violative of Articles 14 and 21. The Court held that tethering the bail fetter to the punishment threshold of the Part-A scheduled offence, rather than to the money-laundering offence itself, was a classification with no rational nexus to the object of the Act. This is the doctrinal origin of the whole twin-conditions saga; a 2018 amendment recast the provision, and Vijay Madanlal Choudhary (2022) later upheld the revived form. A digest of the holding, the ratio on Articles 14 and 21, and why the strike-down remains the reference point everything since is measured against.

Valkya Editorial··8 min
Supreme CourtSupreme Court of India

Saumya Chaurasia v. Directorate of Enforcement: the Section 45 woman proviso is discretionary, not automatic

On 14 December 2023 the Supreme Court refused PMLA bail to Saumya Chaurasia, holding that the words 'may be' in the first proviso to Section 45(1) make the relaxed-bail benefit for a woman discretionary — to be extended only after weighing the extent of her involvement and the nature of the evidence — and cautioning counsel against inaccurate representations in special leave petitions.

Valkya Editorial··8 min
Supreme CourtSupreme Court of India

Tarsem Lal v. Directorate of Enforcement: summons, custody, and the Section 45 bail bar after cognizance

On 16 May 2024 the Supreme Court held that once the Special Court takes cognizance of a PMLA complaint under Section 44(1)(b), the ED is powerless to arrest under Section 19; an accused who appears on summons is not in custody, so the Section 45 twin conditions are not attracted, and the court may instead take a bond under Section 88 CrPC.

Valkya Editorial··9 min
Supreme CourtSupreme Court of India

Union of India v. Kanhaiya Prasad: the Section 45 PMLA twin conditions are mandatory and a bail order must be reasoned

On 13 February 2025 the Supreme Court set aside a Patna High Court order granting PMLA bail by a cryptic order, holding that the Section 45 twin conditions are mandatory, that a bail court must record its satisfaction on them in a reasoned order, and that Section 50 statements are not barred by Article 20(3) at the bail stage. A digest of the holding and where it sits in the PMLA bail line.

Valkya Editorial··8 min
Supreme CourtSupreme Court of India

Parvinder Singh v. Directorate of Enforcement: BNSS s.223 pre-cognizance hearing is mandatory and substantive

On 19 May 2026, a two-judge bench held that the first proviso to Section 223(1) BNSS — requiring the accused to be heard before cognizance is taken on a complaint — is a mandatory, substantive Article 21 right; cognizance without compliance is void ab initio, and the rule applies to PMLA complaints where cognizance is taken on or after 1 July 2024 even if the complaint was filed earlier.

Valkya Editorial··9 min
Supreme CourtSupreme Court of India

Bikram Chatterji v. Union of India: the Amrapali judgment and the court-supervised completion architecture

On 23 July 2019 a two-judge bench of Arun Mishra and U.U. Lalit, JJ. delivered the 270-page Amrapali judgment in exercise of plenary writ jurisdiction under Article 32 of the Constitution. Acting on the findings of a court-ordered Forensic Audit Report, the Court cancelled the Amrapali Group's RERA registration, cancelled the Noida and Greater Noida lease deeds, appointed NBCC (India) Ltd at an 8% commission to complete the stalled projects, appointed Senior Advocate R. Venkataramani as Court Receiver, directed the Enforcement Directorate to investigate offences under FEMA and PMLA, and ordered ICAI disciplinary action against the statutory auditor. Dues recoverable from the authorities and banks were ringfenced to attached promoter assets and were held not to be a charge on the homebuyers or the projects.

Valkya Editorial··15 min
Supreme CourtSupreme Court of India

Vijay Madanlal Choudhary v. Union of India: how the Supreme Court upheld the PMLA arrest, attachment, and twin bail conditions

On 27 July 2022, a three-judge bench led by Justice A.M. Khanwilkar upheld substantially all the contested provisions of the Prevention of Money Laundering Act, 2002 — the arrest power under Section 19, the provisional attachment power under Section 5, the search-and-seizure architecture under Section 17, the reverse-burden provision under Section 24, and the twin bail conditions under Section 45. The judgment also held that an Enforcement Case Information Report (ECIR) is not equivalent to an FIR and need not be supplied to the accused. A digest of the holdings, the doctrinal contributions, and the review now pending.

Valkya Editorial··8 min