Topic
Jharkhand High Court rules that backdated invoices, sham entity transactions, and unexplained cash flows suffice to frame PMLA charges, rejecting the accused's loan defense. The ruling reinforces that legitimate business claims cannot override prima facie evidence of laundering under Sections 3 and 4 of the PMLA.
The Madras High Court ruled that property acquired before a predicate offence can still be classified as 'proceeds of crime' under the Prevention of Money Laundering Act (PMLA) if it is subsequently used to launder illicit gains through lease renewals or operational reinvestment. This decision reinforces the Enforcement Directorate's power to attach assets linked to money laundering, even if the property predates the criminal activity.
Bombay High Court quashes PMLA proceedings against accused where property acquisition predates scheduled offence, clarifying that proceeds of crime must originate before laundering activity.