Case Law Details
Pirtpal Singh Vs Directorate of Enforcement and others (Punjab and Haryana High Court)
In the case of Pirtpal Singh vs. Directorate of Enforcement and others, the Punjab and Haryana High Court addressed several legal issues under the Prevention of Money Laundering Act, 2002 (PMLA) and the Foreign Exchange Management Act, 1999 (FEMA).
The Enforcement Directorate (ED) conducted searches on Pirtpal Singh and his company, Seabird International Pvt. Ltd., under Section 37 of FEMA. These searches revealed alleged violations involving fraudulent issuance of education visas and financial irregularities. Subsequently, the ED filed an ECIR (Enforcement Case Information Report) and a complaint under Sections 44 and 45 of the PMLA, alleging proceeds of crime amounting to Rs. 7,56,40,000.
Pirtpal Singh sought to quash the ECIR and the complaint, arguing that the ED lacked authority under the PMLA since the searches were conducted under FEMA and not under PMLA provisions. The petitioner also contended that the FIRs subsequently filed by the police could not constitute predicate offenses under PMLA.
The court examined whether the ED’s actions were legally justified under PMLA, given that the searches were initially conducted under FEMA. It noted that the ED had the authority under FEMA to conduct searches and seizures akin to those under the Income Tax Act, 1961, as per Section 37(3) of FEMA.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
