AI Overview...
Post Facto Sanction in Money Laundering Act and Deemed Sanction
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Ex Post Facto Laws and Protections
The Prevention of Money Laundering Act (PMLA), 2002, incorporates provisions that have been challenged as being retrospective or violative of constitutional protections. Courts have emphasized that no individual can be prosecuted for an act that was not an offence at the time it was committed, aligning with Article 20(1) of the Constitution of India. Several judgments have quashed proceedings where predicate offences or the basis for money laundering charges were declared null or non-existent at the time of the alleged offence A. Shafiulla, S/o Late. H.v. Abdul Wahab Vs Directorate Of Enforcement, Ministry Of Finance - Karnataka, MR. A. SHAFIULLA, S/O LATE. H.V. ABDUL WAHAB vs DIRECTORATE OF ENFORCEMENT, MINISTRY OF FINANCE, GOVERNMENT OF INDIA - Karnataka. -
Deemed Sanction and Retrospective Effect
Certain provisions of the PMLA, such as Sections 3 and 4, have been interpreted to have retrospective effect through language like shall be deemed always to have meant, making actions taken under these provisions potentially applicable to past conduct. This deemed language grants a retrospective or deemed sanction, which courts have scrutinized for constitutionality and fairness Vinod Ramnani VS Station House Officer - Karnataka. -
Legal Challenges and Judicial Views
Courts have often held that proceedings initiated under the PMLA are subject to constitutional safeguards against ex post facto laws. When predicate offences are annulled or declared non-offences, proceedings based on such offences are typically quashed, reaffirming the principle that criminal liability cannot be imposed retroactively MR. A. SHAFIULLA, S/O LATE. H.V. ABDUL WAHAB vs DIRECTORATE OF ENFORCEMENT, MINISTRY OF FINANCE, GOVERNMENT OF INDIA - Karnataka, Prakash Industries Ltd. vs Directorate of Enforecement - Delhi. -
Sanction and Provisional Attachments
The Act provides for provisional attachment of properties suspected to be proceeds of crime, which can be challenged on grounds of retrospective application or violation of rights. Courts have examined whether such attachments and sanctions are in line with constitutional protections and whether they are based on valid, non-retrospective grounds Deputy Director Directorate of Enforcement Delhi VS Axis Bank - Crimes. -
Deemed Sanction in Administrative and Enforcement Actions
The concept of deemed sanction also appears in administrative contexts, where prior approvals or sanctions are presumed or deemed to have been granted, especially in procedures like attachment or investigation under the PMLA. Courts have scrutinized whether such deemed sanctions comply with legal standards and constitutional protections S. C. JAYACHANDRA S/O LATE CHIKKABORAIAH VS ENFORCEMENT DIRECTORATE, BANGALORE - Karnataka.
Analysis and Conclusion
The core issue surrounding post facto sanctions and deemed sanctions in the Money Laundering Act revolves around balancing effective enforcement with constitutional protections against ex post facto laws. Judicial decisions consistently reinforce that any retrospective application of the law must be strictly within constitutional limits, and proceedings based on predicate offences declared non-offences at the relevant time are liable to be quashed. The use of deemed language to grant retrospective or automatic sanctions raises questions about legality and fairness, necessitating judicial oversight to prevent abuse.
References:
- A. Shafiulla, S/o Late. H.v. Abdul Wahab Vs Directorate Of Enforcement, Ministry Of Finance - Karnataka, MR. A. SHAFIULLA, S/O LATE. H.V. ABDUL WAHAB vs DIRECTORATE OF ENFORCEMENT, MINISTRY OF FINANCE, GOVERNMENT OF INDIA - Karnataka, Vinod Ramnani VS Station House Officer - Karnataka, Prakash Industries Ltd. vs Directorate of Enforecement - Delhi, Deputy Director Directorate of Enforcement Delhi VS Axis Bank - Crimes, S. C. JAYACHANDRA S/O LATE CHIKKABORAIAH VS ENFORCEMENT DIRECTORATE, BANGALORE - Karnataka, B. Rama Raju VS Union of India - Andhra Pradesh, BASANAGOUDA R. PATIL (YATNAL) S/O RAMANAGOUDA B. PATIL VS STATE OF KARNATAKA - Karnataka
Search Results for "Post Facto Sanction in Money Laundering Act and Deemed Sanction"
2025 Supreme(Online)(KAR) 1434 • India - Advocate Appeared : For the Appellant : SMT. HALEEMA AMEEN, ADVOCATE For the Respondent : SRI. SHANTHI BHUSHAN H., DSGI
MR. JUSTICE M.NAGAPRASANNA, J
(A) Prevention of Money Laundering Act, 2002 - Sections 3, 4, and 70 - Writ of certiorari sought to quash proceedings in Special ... facto laws - Court emphasized that no one can be prosecuted for an act that was not an offence at the time it was committed. ... (Paras 10-15) ... ... (B) Article 20 of the Constitution of India - Prohibition against ex post ... Laundering#HL_EN....
2020 0 Supreme(Kar) 664 • India - Karnataka
KRISHNA S.DIXIT
(i) The Company had availed multiple credit facilities from the Bank under Loan Agreement and vide sanction ... The language 'shall be deemed always to have meant' is declaratory, and is in plain terms retrospective.
2011 0 Supreme(AP) 675 • India - Andhra Pradesh
NOOTY RAMAMOHANA RAO
Prevention of Money- Laundering Act, 2002 – Second Amendment Act, 2009. ... Indian Penal Code, 1860 – Section 2(u), 2(v) 2(2) , 2(a),5, 8,17,21,22,23,24,57 of PML Act - Section 420,120-B, 406, 420, 467, 471 ... Under Article 20 (2) of Constitution of India - 5, 8, 17, 18, Second Amendment Act - Seek for writ of Mandamus - Writ Petition - ... Bankers who maintained numbered accounts but i....
2025 Supreme(Online)(Kar) 31017 • India - Karnataka High Court
M.NAGAPRASANNA, J
(A) Constitution of India - Article 20 - Prevention of Money Laundering Act, 2002 - Quashing of proceedings as predicate offences ... ; thus, the entire proceedings against the petitioners were quashed, reaffirming protections against ex post facto laws. ... facto. ... Laundering Act, Bangalore stand quashed qua the petitioners. ... The offences in re....
• India - Delhi High Court
YASHWANT VARMA
(A) Prevention of Money Laundering Act, 2002 - Sections 2(1)(u) and 3 - Challenge to attachment proceedings initiated by Enforcement ... (Paras 100-108) ... ... (B) Principle of money laundering - To establish a charge, there must ... be evidence of criminal activity yielding profits categorized as proceeds of crime - Once predicate offence is annulled, money laundering#HL_EN....
• India - Crimes
R.K.GAUBA
(A) Prevention of Money-Laundering Act, 2002 – Sections 5 and 8 – Provisional attachment – Provisional attachment of property by ... (Paras 63, 68 and 71) ... (B) Prevention of Money-Laundering Act, 2002 ... (Para 105) ... (C) Prevention of Money-Laundering Act, 2002 – Sections ... in addition to the criminal sanction#HL_END....
2017 0 Supreme(Kar) 337 • India - Karnataka
P.S.DINESH KUMAR
laundering under Prevention of Money Laundering Act (15 of 2003), – Accused high ranking official with State Government – Allegedly ... PREVENTION OF MONEY LAUNDERING ACT, 2003 – Section 50 – Statement recorded by Enforcement Directorate Authorities – Section 50 of ... Act 15 of 2003 is in pari materia with Section 108 of Customs Act ....
2011 0 Supreme(AP) 190 • India - Andhra Pradesh
GODA RAGHURAM, R.KANTHA RAO
connected with money laundering, the connected transactions are also presumed to be money laundering for the purpose of proceedings ... money laundering is not violative of Article 14, 21 and 300 A. ... The object of the legislation is to prevent money laundering and transferring the money earned through illegal means into legal and .....
2024 0 Supreme(Kar) 405 • India - Karnataka
K. SOMASHEKAR, UMESH M. ADIGA
Laundering Act. ... (A) Prevention of Money Laundering Act, 2002 - Sections 6(2) and 21; Delhi Special Police Establishment Act, 1946 - Section 6 - Withdrawal ... laundering against a senior state politician after significant cash was discovered in an income tax search. ... The investigation pertains to a case registered under the Prevention of Money #....
2012 0 Supreme(Mad) 2960 • India - Madras
T.MATHIVANAN
Money Laundering - Criminal Proceedings - P.M.L.A., 2002 - Section 5(1), Section 3, Section 4 Fact of the Case: The ... to quash criminal proceedings alleging offences under various sections of the Indian Penal Code (I.P.C.) and the Prevention of Money-Laundering ... Act, 2002 (P.M.L.A.,) for transferring properties purchased with crime proceeds. ... Punishment for money-laund....
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