Courts Deliver Divergent Rulings on PMLA Property Attachment and Prosecution Cases

Two recent court rulings addressed the scope of the Prevention of Money Laundering Act (PMLA) in property attachment and prosecution. In one case, a division bench allowed the Enforcement Directorate (ED) to attach property bought with alleged crime proceeds before PMLA's enactment, overturning a prior order. In another, a special court rejected ED's money laundering complaint against Rathi Steel despite prior CBI convictions, ordering detachment of properties. Both cases highlight judicial scrutiny over PMLA's application and definitions of 'proceeds of crime.'