Analysis of Enforcement of PMLA, 2002 and Misuse of Powers
Introduction
- The Prevention of Money Laundering Act, 2002, enacted to combat drug and terrorism-related crimes, has raised concerns due to its interpretation by the Supreme Court in the case of Vijay Madanlal Choudhary and Ors vs Union of India and Ors (2022).
- The Court limited its application to property derived from criminal activity related to scheduled offenses, emphasizing the necessity of meeting the definition of “proceeds of crime” under Section 2(1)(u) of the Act.
Restriction on Enforcement Directorate’s Powers
- The Court’s decision has restricted the Enforcement Directorate’s (ED) powers, highlighting that prosecution can only be initiated in the presence of proceeds of crime.
- The media has reported instances where ED actions, such as searches and arrests, exceeded its authority, leading to severe criticism from the Supreme Court, as evident in Pankaj Bansal vs Union of India.
Judicial Critique of ED’s Conduct
- The Court, in various cases, criticized the ED’s functioning, emphasizing the need for probity, dispassion, and fairness.
- In Pavana Dibbur vs The Directorate of Enforcement (2023), Justices Abhay S. Oka and Pankaj Mithal reiterated the importance of the existence of “proceeds of crime” for an offense under Section 3 of the PMLA
Damaging Impact on Federalism
- The misuse of PMLA powers is observed in states governed by the Opposition, where the ED investigates non-scheduled offenses such as illegal mining under the Mines and Minerals (Development and Regulation) Act, 1957.
- The Court criticizes this approach, stressing that state governments possess the authority to address such matters.
Case Study: Jharkhand
The case of Jharkhand exemplifies the misuse of investigative powers, where the ED registered a case without any proceeds of crime, leading to a controversial judgment transferring police cases to the CBI.
The subsequent judicial developments, including violations of procedure, raise questions about the abuse of authority and due process.
Selective Targeting and Political Motivations
- Concerns are raised about selective targeting by the CBI and ED, with accusations of political motivations.
Disturbing Questions on Federalism
- The abuse of authority by central investigating agencies, coupled with the courts allowing investigations in non-scheduled offenses without proceeds of crime, raises disturbing questions about the violation of federalism.
- The judiciary’s apparent bias in condemning Opposition-governed states adds to the concerns about the erosion of federal principles.
Conclusion
The analysis underscores the need for a balanced and fair application of PMLA powers, ensuring that investigative agencies operate within the defined legal boundaries and respect the principles of federalism.
Historical Background of IIT Kharagpur
The history of the Indian Institute of Technology (IIT) system dates back to 1946 when a committee led by Jogendra Singh recommended the establishment of higher technical institutions. The first IIT was founded in May 1950 in Hijli, Kharagpur, utilizing the old Hijli detention camp.
Evolution and Growth
From its humble beginnings with 224 students and 42 teachers in 1951, IIT Kharagpur has grown significantly. Currently, it houses over 16,630 students, 746 faculty members, and 887 employees, offering a wide range of academic departments, schools, and centers.
Multidisciplinary Approach and Collaboration
The speaker emphasizes the transformative role of multidisciplinary studies and highlights the importance of collaboration between academia and industry.
The New Education Policy (NEP) 2020 is acknowledged for fostering flexible academic programs and interdisciplinary knowledge assimilation.
Research and Innovation
IIT Kharagpur is actively engaged in research across various domains, aligning with G20 declarations.
The institution has initiated research in emerging fields such as AI, Machine Learning, 6G, and beyond.
Collaborations with tech giants and the establishment of Technology Research Parks contribute to labs-to-market product development.
Educational Initiatives
The institution expresses gratitude to the Ministry of Education for establishing the Department of Education.
New academic programs, including an undergraduate course in AI and Machine Learning, an MBBS program, and Interdisciplinary Dual Degree Programs, demonstrate IIT Kharagpur’s commitment to innovation in education.
Industry Engagement and Placements
- The editorial emphasizes the importance of industry internships, extended from eight weeks to eight months, to enhance students’ practical exposure.
- The institution boasts record-breaking placements and has received the fastest 1000+ offers with the highest packages among all IITs.
Technological Contributions
- IIT Kharagpur’s contributions to technological advancements, such as the COVIRAP diagnostic test kit, painless needle, 2G Ethanol, and sustainable development initiatives, showcase the institution’s impact on societal challenges.
Vision for the Future
The vision for IIT Kharagpur includes a commitment to cutting-edge research in STEM, strengthening educational foundations, fostering entrepreneurship, and contributing to the nation’s development in alignment with the concept of Atmanirbhar Bharat.
Conclusion
The editorial concludes by emphasizing the cultural ethos of self-reliance and the institution’s dedication to playing a pivotal role in building a self-sufficient and innovative India.
