Statutory Landscape of PMLA and IBC
The Prevention of Money Laundering Act, 2002 (“PMLA”)1, is India’s key legal framework for combating financial crimes. The legislation criminalizes the process of money laundering and establishes a comprehensive mechanism for investigation, prosecution, and confiscation of assets obtained from “proceeds of crime”.
In order to effectively implement these objectives, the Enforcement Directorate (“ED”) is designated as the adjudicating authority under PMLA, and is vested with extensive powers, including conducting investigations, provisional attachment of property, and initiating proceedings against individuals involved in illegal activities and obtained proceeds from such illegal activities.
