India has a specific Money-Laundering law in the Prevention of Money-Laundering Act, 2002 The definition of "Money-Laundering" in India is comprehensive enough to cover most of the instances of converting the black money into white, as the same will depend upon the willingness of Enforcement Authorities for strong implementation of, which is in any case subject to judicial scrutiny.Some of the examples of Money-Laundering in the corporate world cover the instances relating to Shell Companies, Foreign Investments, Corporate Mismanagement, Insider Trading and Bribery.Where a transaction of acquisition of property is part of inter-connected transactions, the onus of establishing that the property acquired is not connected to the activity of Money-Laundering, is on the person in ownership, control or possession of the property, though not accused of a Section 3 offence under PMLA, provided one or more of the interconnected transactions is or are proved to be involved in Money-Laundering (Section 23).Footnotes Article by : Vijay Pal Dalmia, Advocate & Partner of Vaish Associates Advocates, India Email: [email protected]: 91-9810081079 Phone: 91 11 49292532 (Direct) Phone: 91 11 49292525 (Board) Skype: dalmia 1In a criminal trial the charge is the foundation of the accusation & every care must be taken to see that it is not only properly framed but evidence is only tampered with respect to matters put in the charge and not the other matters.The fine under PMLA is without any limit and the same may be commensurate to the nature and extent of offence committed and the money laundered.Under Section 19 of PMLA, the appropriate authority under the Act has the power to arrest any person provided that such authority on the basis of the material in his possession has reason to believe that such person has been guilty of any offence punishable under PMLA.
"With this measure, the stock of black money -- to the extent it is kept in cash -- will be unearthed.However, nothing in Section 5 of PMLA shall prevent the person interested in the enjoyment of the immovable property attached from such enjoyment."Person interested", in relation to any immovable property, includes all persons claiming or entitled to claim any interest in the property.After the arrest, the person arrested has to be informed about the grounds for his arrest.
It is also required that the person so arrested shall, within 24 hours, be produced before the Judicial Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction.
If you often delay depositing your cheques for credit into your bank account, be warned.