Prevention Of Money Laundering Act, 2002: Safeguards, Judicial Review, And The Need For Legal Reform
Udit Palariya, Law College Dehradun, Uttaranchal University
Mr Vatsal Chaudhary, Assistant Professor, Law College Dehradun, Uttaranchal University
ABSTRACT
This research paper analyses the Prevention of Money Laundering Act, 2002 (PMLA) from a policy and doctrinal perspective, outlining its basic framework, recent legislative changes, and significant court involvement. The legal concept of money laundering under Section 3 and the enforcement framework, which emphasises the Enforcement Directorate, Adjudicating Authority, and Special Courts, are covered first. The essay places reporting- entity obligations inside India's financial intelligence ecosystem by examining important procedural tactics including provisional attachment, adjudication, confiscation, and statutory presumptions that shift evidential burdens. It evaluates the outcomes of the Supreme Court's joint review in Vijay Madanlal Choudhary in addition to the modifications made in 2019 and 2026 about the extent of planned offences, the requirements for bail, and apparent reversals of the evidence. The policy assessment highlights the potential for institutional overreach, compares the efficacy of enforcement with civil rights concerns, and makes comparisons between FATF and international AML practices. The essay concludes with specific recommendations for maintaining investigative efficacy while regaining transparency and procedural protections.
Keywords: Money Laundering, PMLA, Enforcement Directorate, Reverse Burden of Proof, Vijay Madanlal Choudhary Judgment.
