PMLA court: Cheques, drugs constitute proceeds of crime
A special PMLA court in Mohali has ruled that seized bank cheques and narcotics qualify as 'proceeds of crime' under the Prevention of Money Laundering Act. This decision supports the Enforcement Directorate's ongoing crackdown on major drug syndicates across southern India as part of the 'Nasha Mukt Bharat' campaign.
Why it matters
This legal precedent expands the scope of asset seizure for law enforcement, making it easier to prosecute and financially penalize drug traffickers even when direct money trails are difficult to establish.
NEW DELHI: Broadening the definition of "property" under Prevention of Money Laundering Act, a special PMLA court in Mohali has ruled that seized bank cheques, even if not encashed, and narcotics both fall under the definition of "property" and constitute proceeds of crime under the money laundering Act.The judgement came Thursday, when ED launched a massive search operation at 30 premises across all zones of the southern region in different narcotics-related cases. The searches are being conducted under the mandate of Centre's 'Nasha Mukt Bharat' campaign with targets in the first phase spread across Kerala, Karnataka, Tamil Nadu and Telangana.The judge convicted two accused and sentenced them to rigorous imprisonment for three years, while rejecting the contention of the defence that their property and bank accounts were not attached and the seized contraband could not be considered proceeds of crime as no money trail had been brought on the record.Special…
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