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On its 70th Foundation Day, the Enforcement Directorate (ED) marked the occasion with a high-level event. Director Rahul Navin raised a significant legal question at the event. He addressed the nature of money laundering trials under the Prevention of Money Laundering Act (PMLA).
The issue centres on whether a money laundering trial should depend on the outcome of the predicate offence. The predicate offence refers to the original crime that generates illicit proceeds. It also raises the question of whether the trial can proceed independently.
Context: Kejriwal Case Developments
The question has gained attention following recent developments involving Arvind Kejriwal. He received relief in a case investigated by the Central Bureau of Investigation (CBI). The case relates to the alleged liquor policy matter.
The ED Director, without naming any individual, indicated that such legal interpretations could have far-reaching implications for ongoing and future cases under PMLA.
The core legal concern is whether a money laundering case can sustain itself if the predicate offence weakens or collapses in court.
If courts conclude that PMLA proceedings are inherently tied to the original offence, then any relief in that case could potentially impact ED investigations.
The ED has consistently maintained that money laundering constitutes a separate and independent offence.
According to the agency, trials under PMLA should not necessarily be contingent on the outcome of the predicate offence. This debate is currently under judicial consideration and could evolve into a major constitutional and criminal law issue, influencing how financial crimes are prosecuted in India.
During the event, attended by Minister of State for Finance Pankaj Chaudhary, Revenue Secretary Arvind Srivastava, and Additional Solicitor General SV Raju, the agency presented its achievements and operational outlook.
Rahul Navin noted that economic crimes in India are rapidly evolving.
While earlier investigations focused on bank frauds, corporate scams, and real estate irregularities, newer challenges now include cryptocurrency fraud, cybercrime, terror financing, drug trafficking, and anti-national activities.
For the financial year 2025–26, the ED filed 812 prosecution complaints under PMLA, including 155 supplementary charge sheets—nearly double the previous year’s figures.
Over the past two years, 41 per cent of the agency’s total cases have been registered, reflecting increased enforcement activity.
Conviction Rate and Pending Cases
The ED claimed a conviction rate of 94 per cent. It said more than 2,400 cases are currently pending trial, with expectations of significant convictions.
The agency also emphasised its dual objective of securing convictions and preventing criminals from benefiting from illicit wealth.
In the past financial year alone, properties worth ₹81,422 crore were attached, marking a 170 per cent increase compared to the previous year. The cumulative value of attached assets has reached ₹2.36 lakh crore.
Following the 2019 amendment to PMLA, the ED has been empowered to facilitate non-conviction-based confiscation. As a result, approximately ₹63,142 crore has been returned to victims, including banks, investors, and homebuyers.
Cases such as PACL and Udaipur real estate were cited as examples of restitution.
Under the Fugitive Economic Offenders Act, proceedings have been initiated against 54 individuals, with 21 declared fugitive economic offenders.
Assets worth ₹2,178 crore have been confiscated under this law.
On the global front, India is playing an increasingly active role in anti-money laundering efforts. The country currently chairs the Asia-Pacific Asset Recovery Network steering group and is set to host its annual meeting in 2026. The ED is also expected to play a significant role in the BRICS framework.
The Director acknowledged the adaptability of offenders. He emphasised that the agency is continuously strengthening its investigative capabilities through technology and improved systems.
The Director said the effort aims to safeguard the nation’s financial integrity. It also aims to ensure that proceeds of crime are returned to society.
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