'ED can't act on money laundering sans scheduled offence case

HC bench says ED’s affidavit, attachment orders did not spell out exact scheduled offence committed in sand mining case by petitioners

- R SIVAKUMAR

IN its significant order delivered on Tuesday, asking the Enforcement Directorate (ED) not to take further action against petitioners who approached the court in the sand mining case and quashing ED's orders attaching their properties, the Madras High Court has pointed out that the procedures for registering a money laundering case was not properly followed by the central agency.

The court held that ED cannot initiate action under the Prevention of Money Laundering Act (PMLA) unless it is able to register the information regarding any case (filed by jurisdictional police) under the scheduled offences of the Act and that such an offence has generated proceeds of crime.