Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jan 2: The state high court, in an important verdict relating to tainted assets, ruled that Prevention of Money Laundering Act (PMLA) would be applicable from the date the tainted assets are detected. The tainted assets are those which are earned in violation of PMLA.

Several persons including former Mysuru corporation's corporator, Avva Madesh had sought cancellation of hearing being conducted by the enforcement directorate relating to a case registered under the said act. They had also questioned the case registered against them and sought to annul the summons issued for their personal appearance by the enforcement directorate, and also an order issued by the directorate to seize their properties.

The verdict was delivered by a single judge bench of the high court presided over by Justice Aravind Kumar. A total of 30 individual petitions were heard by the bench before delivering the verdict. The petitioners had argued that crime under the Prevention of Corruption Act section 143 had been wrongly made retrospectively applicable from June 1, 2009 by adding them under the schedule of crimes. They argued that in case of corruption cases, PMLA cannot be made retrospectively applicable.

The complaint was registered against them before June 1,2009 and orders to seize the property have been issued under the Prevention of Corruption Act. They insisted that PMLA cannot be made retrospectively applicable in their cases.

The advocate appearing for the enforcement directorate said that PMLA can be made effective with retrospective affect and that assets that are equivalent to the amount of money laundering alleged would be confiscated and the act is applicable even for cases filed before June 1, 2009.

The bench which heard arguments and counter arguments, said that circulation of money earned through crime is a serious matter that can have deadly influence on the economy of the country. The bench observed that PLMLA can be resorted even in such cases.