The Prevention of Money Laundering Act (PMLA), 2002, remains a crucial tool in combating financial crimes in India. In 2024, the Supreme Court of India delivered several landmark judgments interpreting various provisions of the PMLA, impacting enforcement actions, bail conditions, and procedural safeguards.

In this post, we analyze the top Supreme Court rulings on PMLA from 2024, covering bail considerations, constitutional rights, evidentiary standards, and procedural compliance.

1. Bail and Personal Liberty Under Article 21

Partha Chatterjee v. Directorate of Enforcement, 2024 LiveLaw (SC) 987

• The Supreme Court reaffirmed the importance of personal liberty under Article 21.
• While corruption and money laundering allegations were serious, prolonged incarceration without trial was deemed unjustified.
• The Court granted bail with conditions, ensuring the accused did not interfere with the judicial process.

Laxmikant Tiwari v. Directorate of Enforcement, 2024 LiveLaw (SC) 787

• The absence of a scheduled offence at the time of filing a PMLA complaint was a critical factor.
• The Court ruled that an FIR under the Indian Penal Code (IPC) alone could not justify continued detention under PMLA.
• Bail was granted, emphasizing that fundamental rights cannot be overridden by procedural delays.

Vijay Nair v. Directorate of Enforcement, 2024 LiveLaw (SC) 644

• The Court reiterated that bail is the rule, jail is the exception, even under stringent laws like the PMLA.
• A long period of pre-trial detention (without conviction) violated constitutional rights.

2. Summons, Investigations, and Evidentiary Standards

Abhishek Banerjee v. Directorate of Enforcement, 2024 LiveLaw (SC) 674

• The Court held that PMLA provisions override CrPC regarding summoning of individuals.
• Section 50 of PMLA empowers the Enforcement Directorate (ED) to summon individuals, and such proceedings are deemed judicial in nature.
• However, self-incrimination protections under Article 20(3) of the Constitution apply only upon formal arrest.

Prem Prakash v. Union of India, 2024 LiveLaw (SC) 617

• Statements made under Section 50 PMLA cannot be used against an accused in custody, as such statements lack voluntariness.
• The Court clarified that a co-accused’s statement alone cannot be used as substantive evidence under the Indian Evidence Act, 1872.

3. Application of CrPC and Other Procedural Laws

Directorate of Enforcement v. Bibhu Prasad Acharya, 2024 LiveLaw (SC) 940

• The Court ruled that Section 197(1) of the CrPC applies to PMLA cases, ensuring public servants require prior sanction for prosecution.

Directorate of Enforcement v. Vilelie Khamo, 2024 LiveLaw (SC) 1045

• Discharge in a predicate offence does not automatically quash PMLA proceedings.
• Summons can still be issued, and the accused can challenge their arraignment at a later stage.

4. Special Provisions for Women and Undertrial Prisoners

Kalvakuntla Kavitha v. Directorate of Enforcement, 2024 LiveLaw (SC) 614

• Women are entitled to special treatment under Section 45(1) PMLA, regardless of their education or social status.
• The Supreme Court set aside a lower court order that denied bail on arbitrary grounds.

Badshah Majid Malik v. Directorate of Enforcement, 2024 LiveLaw (SC) 835

• Undertrial prisoners who have spent over one-third of their maximum possible sentence in detention are entitled to bail under BNSS, 2023 and CrPC, 1973.

5. Supreme Court’s Balancing Approach in PMLA Cases

The Supreme Court has struck a delicate balance between stringent anti-money laundering measures and constitutional safeguards. Key trends from the 2024 judgments include:
✅ Reinforcement of personal liberty principles under Article 21.
✅ Higher scrutiny on prolonged pre-trial detention in money laundering cases.
✅ Clarifications on evidentiary standards, limiting reliance on co-accused statements.
✅ Recognition of procedural safeguards, including CrPC provisions where applicable.

Conclusion

The Prevention of Money Laundering Act (PMLA), 2002, remains a powerful legislation in India’s financial regulatory framework. However, the Supreme Court’s evolving jurisprudence in 2024 ensures that fundamental rights, fair trial principles, and procedural fairness are upheld while tackling financial crimes.

For more legal updates, case digests, and expert analysis, stay tuned!

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