Introduction:

In the case of DIRECTORATE OF ENFORCEMENT v. AKHILESH SINGH & ORS., the Delhi High Court delivered a significant judgment regarding the treatment of properties attached under the Prevention of Money Laundering Act (PMLA) following an acquittal in the scheduled offence. The case involved various individuals accused of money laundering, with the Enforcement Directorate (ED) as the petitioner and the respondents represented by their counsel.

Arguments of Both Sides:

Mr. Anurag Jain, Special Counsel for ED, argued that an appeal against the order of acquittal should be considered a continuation of the proceedings before the Trial Court, thereby justifying the retention of property attachments under the PMLA. Conversely, the counsel for the respondents, including Mr. M.A. Niyazi and others, contended that once acquitted of the scheduled offence, the properties cannot be legally treated as proceeds of crime or linked to criminal activity.

Court’s Judgment:

Justice Vikas Mahajan, delivering the judgment, emphasized that the foundation of money laundering charges is the connection to the proceeds of crime from the scheduled offence. Therefore, upon acquittal in the predicate offence, the basis for money laundering charges is eliminated, leading to the release of attached properties. The court dismissed ED’s plea, affirming that the trial concludes with an acquittal, and no proceedings under the PMLA can be sustained thereafter.