THE OFFENCE OF MONEY LAUNDERING IN INDIA THROUGH THE LENS OF THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

AUTHOR – MR. KRISHNAKANTH REDDY B, CHRIST (DEEMED TO BE UNIVERSITY), BENGALURU

BEST CITATION – MR. KRISHNAKANTH REDDY B, THE OFFENCE OF MONEY LAUNDERING IN INDIA THROUGH THE LENS OF THE PREVENTION OF MONEY-LAUNDERING ACT, 2002, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (3) OF 2026, PG. 539-546, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Money laundering represents one of the most pervasive and sophisticated financial crimes undermining the integrity of national economies and democratic institutions. In India, the Prevention of Money-Laundering Act, 2002 (PMLA) serves as the primary legislative instrument to combat this menace, establishing a comprehensive framework for the definition, detection, prosecution, and prevention of money laundering offences. This paper critically examines the offence of money laundering as defined and operationalized under the PMLA, tracing its evolution through successive legislative amendments, analysing the enforcement mechanisms vested in the Directorate of Enforcement, and evaluating landmark judicial pronouncements that have shaped the contours of the law. Special attention is devoted to contested aspects of the legislation, including the reverse burden of proof under Section 24, the twin conditions for bail under Section 45, and the broad powers of attachment and arrest. The paper argues that while the PMLA represents a necessary and largely effective tool against financial crime, certain provisions require recalibration to ensure conformity with constitutional guarantees of personal liberty, due process, and the presumption of innocence. The paper concludes with recommendations for reform aimed at strengthening the anti-money laundering framework while preserving fundamental rights.

Keywords: Money Laundering, PMLA, Directorate of Enforcement, Proceeds of Crime, Scheduled Offence, Bail, Attachment, Reverse Burden