Attachment of property involved in money-laundering –Constitutionality of Section 5(1) PMLA, 2002.

Abstract

Section 5 of the Prevention of money laundering Act, 2002 deals with the attachment of property involved in money-laundering. Subsequently, the second proviso to Section 5 (1) of Prevention of Money-laundering Act, 2002 (PMLA), empowers the Enforcement Directorate to provisionally attach the properties allegedly bought from proceeds of crime. This paper aims to examine the Constitutional Validity of Section 5 (1) of the Prevention of Money-laundering Act, 2002 in light of the Writs being W.P.(C) 5320/2017 1 & other connected batch matters, decided by a Bench of the Hon’ble Delhi High court on 13th January 2018 and analysing other such precedents. This paper examines the expression “Proceeds of Crime” and “Reason to Believe” which has substantial significance when dealing with the provisions of provisional attachment of the property.

Keywords: Money Laundering, Proceeds of crime, Reason to Believe, Provisional Attachment

The paper can be accessed below:

Attachment-of-property-involved-in-money

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