ED Can Launch Prosecution by Filing a Complaint for Violation of S. 3 and 4 of PMLA based on Predicate Offence: Punjab and Haryana HC

The Punjab and Haryana High Court ruled that the Enforcement Directorate (ED) can initiate prosecution by filing a complaint for violations of Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 (PMLA) based on a predicate offense. This decision came after the ED conducted searches on Pirtpal Singh and his company, M/s Seabird International Pvt. Ltd., under the Foreign Exchange Management Act (FEMA), based on information about serious forex violations and fraudulent activities involving education visas for colleges in Australia. The ED's investigation led to the discovery of further infractions under the Indian Penal Code (IPC) and the Arms Act, prompting them to file a complaint under PMLA.\r

The petitioner, seeking to quash the Enforcement Case Information Report (ECIR) and the subsequent complaint, argued that there was no predicate offense to justify actions under PMLA. However, the court noted that FIRs had been filed under Sections 472 and 473 of the IPC, which are listed as scheduled offenses under PMLA. Justice Anoop Chitkara affirmed that the ED was within its rights to pursue prosecution under PMLA, based on the predicate offenses identified. Consequently, the petition for anticipatory bail was dismissed, reinforcing the ED's authority to act on violations linked to both FEMA and PMLA.