ED Secures PMLA Conviction in Cross-Border Drug Trafficking Case.

Headnote:

The Directorate of Enforcement, Jalandhar Zonal Office, secured the conviction of Athar Sayeed under the Prevention of Money Laundering Act, 2002 (PMLA) for offences arising out of cross-border drug trafficking. The Special PMLA Court sentenced the accused to rigorous imprisonment and ordered confiscation of the proceeds of crime amounting to ₹17 lakhs.

Background:

• The Enforcement Directorate initiated investigation on the basis of an FIR registered by the Punjab Police under various provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) against Athar Sayeed and others.

• The FIR pertained to cross-border trafficking of heroin and allied drug-related offences.

• The investigation was taken up to trace the proceeds of crime generated from narcotics trafficking and to establish money laundering under PMLA, 2002.

ED’s Investigation Findings

• ED investigation revealed that Athar Sayeed was actively involved in cross-border trafficking of heroin.

• He was engaged in smuggling heroin, subsequent sale of narcotic substances, and collection of drug proceeds.

• The proceeds generated from drug trafficking constituted “Proceeds of Crime (POC)” under the PMLA, 2002.

• Searches were conducted at two locations on 01.04.2016 under the provisions of PMLA, 2002.

• During the investigation, movable properties worth ₹17 lakhs, including cash seized from Athar Sayeed, were identified as proceeds of crime.

• These properties were provisionally attached vide Provisional Attachment Order dated 21.03.2018.

Court’s Decision

• The Hon’ble Special Judge (PMLA), Jalandhar, convicted Athar Sayeed for the offence of money laundering under the PMLA, 2002.

• The accused was sentenced to rigorous imprisonment for three years.

• A fine of ₹10,000 was imposed.

• In default of payment of fine, the accused shall undergo further rigorous imprisonment for three months.

• The Court further ordered confiscation of ₹17 lakhs, seized as proceeds of crime.

Legal Provisions Involved:

• Prevention of Money Laundering Act, 2002 – Offence of money laundering and confiscation of proceeds of crime.

• Narcotic Drugs and Psychotropic Substances Act, 1985 – Offences relating to cross-border drug trafficking.