Courts Begin to Check ED's Summons Power

Three months into the new year, the courts continue to reinterpret and shape the laws on money laundering.

- ATUL N MENON

Today, it is one of the most feared crimes in India. Why? Because if you are accused of money laundering and end up being a guest of the state for it, you are unlikely to get any leniency from the judiciary when it comes to securing bail. This is despite the fact that the conviction rate for this offense remains below 5 percent. This is apart from the seizure of one's assets including electronic items and freezing of bank accounts that the ED is empowered to do upon a mere suspicion that they contain evidence of "proceeds of crime." Even before the crime of money laundering is proven.

Make no mistake, money laundering is indeed a serious offense. It can disrupt a country's economy by robbing it of legitimate revenues and deserves to be treated with a stringent hand. But one concern about the tough law for fighting this crime is the unbridled powers it gives to the machinery that enforces it and the ease with which it can be misused. The trepidation begins the moment one is summoned by the ED. There is no way of knowing what you are being summoned for—whether it is for the commission of an offense or giving evidence as a witness.