Thread by @LawBeatInd

#SupremeCourt to continue hearing batch of Petitions challenging the provisions of Prevention of Money Laundering Act.
#PMLA
#MoneyLaundering

Solicitor General Tushar Mehta arguing today submits that the entire argument of the petitioner that the entire Act which is Penal in nature has to be compliant with Indian Penal Code, it must be Constitutionally compliant and need not be Indian Penal Code compliant.
#PMLA

Mehta interpreting section 5 of the PMLA Act.

J Khanwilkar- It should be understood by a common man, it is for the common man not for a legal mind, since you are taking so long to understand, think about the plight of a common man.

#PMLA
#MoneyLaundering

Over the issue of attachment of property.
J Khanwilkar- One is attachment and one is registration of offence, there has to be a registration of offense for the attachment of the proceeds of crime.

Mehta- Then I'll inform the police officers.

#PMLA
#MoneyLaundering

J Khanwilkar- Yes, but attachment shall bee done only if their is a predicate offence registered, like recently what happened in UP.

Mehta- I'll have to have reasons for the prosecution, I'll have to have material otherwise I'll face consequences.

#PMLA
#MoneyLaundering

Mehta- Another thing is that it is a provisional arrangement, it prevents from transferring not from using it.

#PMLA
#MoneyLaundering

Mehta- Your Lordships, the petitioners what PMLA to be under CrPC, whereas in CrPC an officer can arrest even on suspicion, even on suspicion that it is a property of theft he can cease it.
#PMLA
#MoneyLaundering

Mehta- Here we have layers of filters, and it is a provisional arrangement.

#PMLA
#MoneyLaundering

Mehta- Yesterday, I had informed the bench that 18000 Crores has been returned back to the banks, it was under this rule that after conviction the property may be returned to the claimant who suffered loss.
#PMLA
#MoneyLaundering

Mehta giving an example, suppose I earn Rs. 1 Lakh per month.

J Khanwilkar- This has to be 1 Lakh per hour or per day if you are there.

Court Laughs
Mehta- No Milords, it's not per hour or per day.
J Khanwilkar- I can see you blushing.
#PMLA
#MoneyLaundering

Mehta referring to the Chapter 4 of the PMLA Act, says that if there is an unusual activity in an account then the bank or any other entity will furnish the information to the Director.
#PMLA
#MoneyLaundering

Mehta- Suppose there is a Jute Businessman who deals in and out with Rs.10 Lakhs and suddenly receives Rs.50 Crores, this suspicious transaction will be informed.
#PMLA
#MoneyLaundering

J Khanwilkar- You can take us through some sections which has been argued by other side that this need not to be there and you say it is important.

Mehta- Ofcourse Milords.
#PMLA
#MoneyLaundering

Mehta further submits that PMLA is a complete code whereas, CrPC is a generic law and under CrPC police office need not to record reasons and under PMLA he'll have to give reasons.

#PMLA
#MoneyLaundering

The bench to continue hearing the matter post lunch.

#PMLA
#MoneyLaundering

Mehta- FATF (Financial Action Tast Force) conducts audits, it's 2012 normal evaluation report said that the #MoneyLaundering definition isn't consistent with Vienna Convention and we complied. To be compliant would be necessary for our international stability.

#PMLA

FATF (Financial Action Tast Force) is an inter-governmental organization founded in 1989 as an initiative by G7 to frame policies dealing with #MoneyLaundering

Mehta: Milords there is a referral at 3 (referring to the full court reference scheduled at 3 PM)

J Khanwilkar: Which page?
Mehta: At 3 O'Clock your Lordships has a reference.

J Khanwilkar: We are so into this that now as soon you talk about numbers we'll be in money or pages.

The bench will continue hearing the matter tomorrow.
#PMLA
#MoneyLaundering

*The bench will continue hearing the matter on Tuesday.
#PMLA
#MoneyLaundering