Challenges in PMLA Case Trials in India
The Enforcement Directorate (ED) has brought into light ongoing challenges in the timely completion of money laundering case trials. Despite the establishment of 100 special courts under the Prevention of Money Laundering Act (PMLA), systemic and procedural hurdles persist. The ED’s recent annual report sheds light on these issues.
Systemic and Procedural Hurdles
The ED report identifies several systemic challenges. The prosecution of money laundering cases is closely linked to the progress of the underlying predicate offences. Delays in these related cases often slow down PMLA trials. The complexity of financial investigations also contributes to prolonged trial durations. Investigations frequently involve intricate financial structures and cross-border transactions that require extensive forensic analysis.
Judicial Resource Constraints
The report notes that judicial resources are stretched. Many special PMLA courts handle cases under multiple statutes. This overlap leads to interruptions in trials due to interlocutory applications and writ petitions. Such interruptions can escalate to higher courts, further delaying proceedings. The ED acknowledges that these factors hinder the expeditious disposal of cases.
Conviction Rate and Case Statistics
ED reported a conviction rate of 93.6%. Of the 47 cases decided, only three resulted in acquittals. The report states that since 2005, the ED has registered 7,771 Enforcement Case Information Reports (ECIRs) and filed prosecution complaints in 1,739 cases. This disparity marks the extensive backlog faced by the agency.
Legal Challenges in Asset Attachment
Nearly one-third of ₹1.54 lakh crore worth of proceeds of crime is currently under legal challenge. The ED faces two legal hurdles regarding asset attachment. The first concerns the validity of confirmation orders passed by a single member of the adjudicating authority. This issue has led to stays in numerous cases, freezing assets worth ₹3,803.91 crore. The second hurdle relates to the interpretation of the 180-day time limit for confirming provisional attachment orders, involving assets worth ₹49,620 crore.
Management of Attached Assets
Post-attachment, the ED encounters challenges in managing and maintaining assets. Many attached properties are subject to depreciation. To mitigate value loss, the ED sometimes substitutes these assets with fixed deposit receipts. This strategy aims to preserve the assets for eventual confiscation under the PMLA.
Recent Performance Metrics
In the 2024-25 period, the ED issued 416 provisional attachment orders worth ₹30,036 crore. This represents a 44% increase in the number of attachments and a 141% rise in total value compared to the previous year. The ED’s aggressive approach signals a commitment to reclaiming proceeds of crime, reinforcing the message that illicit gains will be pursued relentlessly.
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