Digital Devices Not Relied Upon in PMLA Complaint Cannot Be Retained Indefinitely: SAFEMA

Dr. Pradeep Makkar Vs Deputy Director (Appellate Tribunal under SAFEMA, New Delhi)

Digital Devices Cannot Be Retained Indefinitely When Not Relied Upon in PMLA Complaint and Owner Is Not an Accused: SAFEMA Tribunal

The Prevention of Money Laundering Act, 2002 provides the statutory framework for investigation, search and seizure, retention and adjudication in money-laundering proceedings. The Appellate Tribunal under SAFEMA has directed the Enforcement Directorate to release a seized hard disk and mobile phone within 30 days after the ED admitted that the devices were not relied upon in the prosecution complaint and that their owner had not been arrayed as an accused. The Enforcement Directorate had seized a hard disk, mobile phone and locker belonging to Dr. Pradeep Makkar during proceedings under the Prevention of Money Laundering Act, 2002.

The locker was subsequently released. However, the ED continued to retain the hard disk and mobile phone, prompting the appellant to approach the Tribunal against their continued seizure. During the hearing, counsel for the ED stated on instructions that the seized hard disk and mobile phone had not been relied upon in the prosecution complaint and that the appellant had not been named as an accused in the prosecution complaint.