India: Money Laundering Act meant to prevent criminal proceeds being legitimized says HC


After the court dismissed the petition by Triad Trading Services P Ltd, on behalf of R Subramanian, who is the Managing Director of M/s Subiksha Trading Services Limited, it confirmed the Enforcement’s Department right to possession of the properties confirmed to have proceeded from crimes, saying that the law has been developed to avoid the legitimization of funds earned through illegal means by spending it on movable and immovable property.

According to the chief justice A P Sahi and Justice Subramonium Prasad, Section 8 (4) of the Prevention of Money Laundering Act 2002, and the Prevention of Money Laundering Rules of 2013 which allows taking possession of properties obtained with proceeds from crimes was enacted after it was discovered that criminals relied on money laundering to finance their operations, and purchasing movable and immovable property. In view of this, the court ordered that lands owned by the defendant be seized. During the petition filed for Subramanian, the adjudicating authority found that the lands for which the provisional attachment were filed were all proceeds of crimes, hence, the authority passed the final order for taking the possession of the properties saying that owners of properties acquired through crimes should not be allowed to enjoy them.