Money laundering rampant in India, ED PCs up by 378% in last 5 yrs; politician cases down 83%! EXCLUSIVE!

Bhubaneswar: The Enforcement Directorate has assumed an exalted role of taking a hot pursuit of the large scale money laundering activities in India, especially after the Modi government amended the PMLA in 2019. 

In 2019, the BJP led NDA government has brought many amendments to the Prevention of Money Laundering Act (PMLA) – 2002. The amendments have provided the Enforcement Directorate to widen it’s trap-net and take a hot-pursuit of the PMLA offenders.

EMBOLDENING ED  

In 2019, the government had brought in many amendments via insertion of “explanations” to the corresponding Sections, in order to remove the ambiguity and net the offenders of money laundering. Here are the “Explanations” that turned gamechanger in tightening noose around the PMLA violators.

• Section 3 of PMLA contains provisions related to “offences of money laundering”. Govt inserted the following explanations
• An individual is guilty of money laundering if found directly or indirectly indulge, assist or involve in activities connected with proceeds of crime like 

1) concealment; or

2)possession; or

3) acquisition; or

4) use; or

5) projecting as untainted property; or

6) claiming as untainted property

• The 2019 Amendment expands the scope of the proceeds of crime.  

The explanation inserted was, it said, for the removal of doubts, it is hereby clarified that “proceeds of crime” including property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence”.

• The most important of all insertion has been that of the following.

It says, for the removal of doubts, it is clarified that the expression “Offences to be cognizable and non-bailable” shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973, and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfillment of conditions under section 19 and subject to the conditions enshrined under this section.”

IMPACT ON PMLA CASES

The data below showcases how the amendments had emboldened the ED to go on a prowl of the money launderers across the country.

A glance at the above numbers shows how the number of prosecution complaints filed in 2019 were at mere 50, and the same doubled to 106 in 2020 after the 2019 Amendment to PMLA. The data shows ED may make a record in filing PCs in 2024, it had already filed 206 in just 10-months.

Moreover, as many as 106 special courts under PMLA was set up taking up trials of the PCs filed.

ED ON PROWL

As per the data with ED, the anti-money laundering agency in the last 5-years had put a high of over 300 cases on trial. The agency has secured conviction in 42 cases, sentencing 99 accused and confiscated proceeds of crime from them. 

The ED data further reveals that agency has seized the total value of proceeds under PMLA worth approximately Rs.3725.76 crore, of which –

• frozen under PMLA is approximately Rs.4651.68 crore
• attached under PMLA is approximately Rs.1,31,375 crore.
• CONVICTION RATE
• The ED claims the conviction rate high at 93%. 

LENS ON NETAS

With the 2019 amendment to PMLA Act and ED getting emboldened, Political leaders came more under scrutiny of the anti-money laundering agency. But after the political vendetta uproar, the year 2024 has some quiet numbers. Data below.

 A glance at the data infers that the ED filing of Enforcement Case Information Report (ECIR) against MP/MLAs first increased, only to drop big by 83% in 2024. (if average cases per month upto July of the base year 2020 is taken into account)