ED’s Freezing Orders Quashed for Non-Compliance with PMLA Safeguards

Advertisement Directorate of Enforcement Vs Poonam Malik (Delhi High Court) Delhi HC Quashes ED’s “Suspicion-Based” Freezing Orders for Non-Compliance with Mandatory PMLA Safeguards The Delhi High Court dismissed ED’s appeals & upheld the Appellate Tribunal’s order unfreezing the bank accounts of respondent Poonam Malik. The Court held that the freezing orders dated 05.09.2018 under Section 17(1A) PMLA were illegal, as they were issued only on “suspicion” without recording the mandatory “reasons to believe”, a statutory precondition for any search, seizure, or freezing...